Turning Non-Standard Risks into New Revenue: How Agents Can Capitalize on the Specialty Market

Independent agents could be turning away nearly half of their prospective clients.

The years of independent agents chasing “standard and preferred” home and auto risks are quickly coming to an end.

As the risk landscape evolves, the traditional “ideal” customer profile–stable income, home ownership, clean driving record–is no longer the reliable foundation for agency growth it once was.

Economic pressures, climate-related exposures, and demographic shifts are forcing many clients out of standard underwriting guidelines and into non-standard, niche, or E&S (excess and surplus lines) territory.

For every six standard risks that walk into an agency, there are likely four more that don’t fit the mold. These non-standard risks, once dismissed as too niche or time-consuming, are now essential for agency revenue growth, client retention, and diversification.

By approaching this segment with the right strategy and tools, agents can stay competitive and serve a broader range of clients. Here are five ways to turn those out-of-the-box risks into revenue.

Redefine Non-Standard Risks

Non-standard home and auto risks aren’t inherently bad; they just fall outside typical carrier appetites. For example, standard carriers might be hesitant to insure a home on the coast with storm exposure, or a property with prior water or fire loss.

Similarly, they may shy away from auto clients with a foreign driver’s license or an imperfect driving record. While these prospective clients may not qualify for preferred coverage, there are many non-standard solutions that can meet their needs.

The recent hard market and increasingly severe weather patterns have accelerated the shift of business away from standard markets. For agents, this spells opportunity. E&S policies typically present a chance to earn higher premiums–and therefore, higher revenue–from fewer transactions.

Success Starts with Access

Roughly 40% of U.S. drivers fall into the non-standard auto risk category. If an agency cannot cater to those customers, they’re sending nearly half of their potential clients to competitors.

Finding solutions for those out-of-the-box risks starts with building relationships with surplus lines carriers, managing general agencies, managing general underwriters, and wholesale brokers that understand tough risks and can offer flexible and customizable underwriting. Many of these players also offer digital platforms to streamline the quoting and submission of complex business.

While specialty market workflows can feel unfamiliar, they are increasingly user-friendly thanks to modern technology and new distribution platforms.

Boost Retention, Bolster Revenue

Non-standard offerings aren’t just about capturing new business; they also help with client retention.

Clients get dropped by standard carriers for many reasons, such as a water loss, a DUI, poor credit, or a missed premium payment. Without a non-standard option, those clients will be forced to leave an agency. But with access to E&S markets, agents can keep them on the books and guide them toward future eligibility for preferred coverage.

Retention matters, especially when acquisition costs are high and competition is fierce. A flexible, full-spectrum approach allows agents to weather market swings and to maintain long-term relationships with their clients.

Use Technology Wisely

One of the biggest misconceptions about E&S business is that it’s too complicated and time-consuming. While that may have been true in the past, today’s digital tools have completely changed the game.

Modern technology platforms can use property addresses, vehicle identification numbers (VINs), and other simple data to pre-fill forms and produce bindable E&S quotes in minutes. Digital document delivery, mobile billing, and flexible reinstatement offerings further reduce friction for both agents and clients.

Still, the human touch remains vital with complex risks. Trusted relationships with experienced underwriting partners are key to negotiating favorable terms and coverages for non-standard insureds. While technology accelerates the process, it’s still the agent’s expertise that delivers real value.

Engage in a Broad Market Strategy

Eventually, every agency encounters a client or risk that falls outside the standard box. Agents who proactively seek out tools, relationships, and markets to handle these situations are better positioned to grow.

Flexible market access is essential. Whether through direct appointments, wholesale brokers, or strategic partnerships, agents should create a pathway to coverage for unusual or evolving exposures. The goal isn’t to become a full-time E&S specialist; it’s to be ready to offer coverage when a solution is needed.

The Bottom Line

The non-standard insurance market is no longer optional for independent agents looking to thrive. As standard carriers tighten up their underwriting and clients’ needs evolve, agents who build capacity in the E&S space will be better equipped to grow, retain, and diversify their business.

The numbers speak for themselves. In 2017, independent agents placed $130

million in premium through our network’s E&S offering. By the end of 2024, that number ballooned to $740 million in premium. That growth came from agents who adapted to meet their clients’ unique needs and offered specialty solutions others wouldn’t.

While clients with non-standard risks may not look like the “ideal” customer, they still represent a huge underserved market. When agents solve their problem, they earn their trust and long-term loyalty, which translates into referrals and revenue growth.

Topics Profit Loss Agencies Excess Surplus