The commercial insurance industry is facing one of the toughest hard markets in decades. Rising rates, stricter underwriting guidelines, and reduced carrier appetites have made it increasingly difficult for producers to place business. However, amidst these challenges, there are significant opportunities for agents who understand how to navigate this environment effectively using insurtech solutions.
One of the biggest game-changers in today’s market is InsurTech, which has transformed the way risks are assessed, quoted, and bound. By combining automation, data analytics, and human underwriting expertise, modern InsurTech MGAs are enabling producers to close more deals efficiently while offering superior coverage options to their clients.
One such InsurTech MGA is Rainbow, which specializes in restaurant insurance and other niche markets. Their model blends advanced technology with hands-on underwriting, providing a competitive advantage for agents looking to secure difficult-to-place risks. In this blog, we’ll explore how InsurTech, underwriting flexibility, and client-facing technology can help producers win in the hard market.
What is a Hard Market?
A hard market occurs when insurance carriers tighten their underwriting criteria, increase premiums, and reduce their appetite for risk. This often happens in response to higher claims activity, economic downturns, or regulatory changes.
Key characteristics of a hard market include:
In this environment, producers need to be more strategic and proactive about how they approach risk placement. Instead of simply shopping for lower rates, agents must focus on value-driven conversations, underwriting relationships, and specialized markets to gain a competitive edge.
How InsurTech is Changing Risk Placement
InsurTech MGAs are disrupting traditional insurance models by leveraging AI-driven underwriting, predictive analytics, and automation to improve risk assessment.
Key advantages of InsurTech include:
Rainbow MGA is a prime example of this shift. Unlike traditional carriers that rely solely on automation or rigid underwriting models, Rainbow blends cutting-edge technology with expert human underwriters, allowing for greater flexibility in risk assessment.
This hybrid approach enables producers to overcome automatic declines, appeal underwriting decisions, and secure coverage for risks that might otherwise be rejected.
The Challenges of Placing Restaurant Risks
The restaurant industry is notoriously difficult to insure due to its high exposure to fire hazards, liquor liability, and employee-related risks. Many carriers claim to write restaurant business, but their appetite is often limited to low-risk, well-established businesses.
Common obstacles producers face when placing restaurant insurance include:
However, InsurTech MGAs like Rainbow specialize in this space, offering:
Higher liquor tolerances (up to 65%) Fast-track underwriting decisions Flexibility for new ventures Multi-location quoting for franchises
For agents who understand the unique risks of the restaurant industry, this represents a significant growth opportunity in today’s hard market.
How to Address Client Concerns About Newer Carriers
One common challenge producers face is presenting an unfamiliar carrier to a client. Many businesses default to brand recognition, assuming that a well-known insurance company automatically provides better coverage.
To overcome this objection, agents should:
A producer’s ability to confidently present a new carrier with the right value proposition can mean the difference between winning and losing the account.
Why Relationships Matter in a Hard Market
In a tight underwriting environment, the ability to advocate for clients and appeal underwriting decisions is a significant advantage. Not all declines are final—often, additional information or a revised submission can turn a decline into a bound policy.
Best Practices for Producers:
Rainbow MGA, for example, has been able to convert declines into bound accounts by working closely with its underwriting team and taking a holistic approach to risk evaluation.
How to Use InsurTech to Drive More Business
One of the most underutilized advantages of InsurTech MGAs is their ability to provide client-facing tools that help producers generate inbound leads.
Some examples include:
By incorporating these tools into their marketing strategy, producers can attract higher-intent prospects and streamline the sales process.
How Training Can Help Producers Sell More Effectively
The most successful producers don’t just sell policies—they educate their clients on risk management and coverage options.
Carriers and MGAs that offer learning management systems (LMS) and continuing education (CE) opportunities help agents become better salespeople while differentiating themselves in the marketplace.
For example, a restaurant producer who can provide clients with:
…will be seen as a trusted advisor, rather than just a salesperson.
As InsurTech MGAs continue to grow, the ability to integrate education with sales strategy will become a major differentiator in the industry.
The insurance industry is changing rapidly, and producers who embrace technology and underwriting flexibility will have a significant advantage.
InsurTech is revolutionizing risk placement, allowing for faster and more efficient underwriting. Underwriting relationships matter more than ever—producers who advocate for clients will win in the hard market. Client-facing technology and learning management resources can differentiate agents and drive more business.
For those looking to expand into niche markets like restaurant insurance, MGAs like Rainbow offer the perfect blend of technology, underwriting expertise, and agent support.
Want to explore better ways to win in the hard market? Visit UseRainbow.com to learn more and get appointed today! 
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
Standing out as a commercial insurance producer can feel like an uphill battle. The hard market has intensified competition, making it more important than ever
Personal branding has become a cornerstone of career success. From networking events to LinkedIn profiles, how you present yourself can open doors to new opportunities
The insurance industry has long been defined by its structured approach to risk management, underwriting, and policy distribution. However, as the landscape continues to shift
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
Please confirm you want to block this member.
You will no longer be able to:
Please note: This action will also remove this member from your connections and send a report to the site admin. Please allow a few minutes for this process to complete.
Notifications
Responses