2007 Best Practices Study

Agencies with Revenues Between $2,500,000 and $5,000,000

Executive Perspectives

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Keys to Their Success

purpose is to not just ‘sell’ insurance policies but to ‘partner’ with our clients to help them manage their insurance programs.” For this group of agencies, however, all of the top success factors work together as interrelated paths to a shared destination – growth, profit and retained earnings. These agencies recognize the need to run their agencies as businesses, rather than to support a life-style. They know they must produce a growing volume of profitable business if they are to retain strong carrier relationships, and they must use their profits to fund new producers, and invest in the tools that will allow them to remain competitive regardless of market conditions. Just as attracting and retaining quality employees and strong producers is a key to the success of the top agencies, the same issue also stands as their most daunting challenge. Everyone within our industry recognizes that there is a “war” for talent. This is the reason these agencies strive to create environments and opportunities that will keep their best employees from ever wanting to leave. If they are to grow and perpetuate their agencies, however, they will have to effectively recruit talented, experience employees, or create a structure where they can train and develop talented employees without experience. The ability to do so will be the defining characteristic for the highest performing firms. Challenges They Face The soft property and casualty market is also an obvious challenge for these firms. It has been interesting, though, to see how different life has been for those agents in parts of the country susceptible to natural disasters such as hurricanes. Although coastal agents have not suffered from a soft property and casualty market, they have been challenged by the ability to find the capacity that they need.

Insurance is a people-driven industry, in which trust and communication are critical, so it follows to reason that the strongest performers attribute their success to the quality of their employees and the level of service they provide. Many of the Best Practices agencies emphasize the quality of their employees who can “deliver a full range of client service… deepen client relationships…. keep clients’ interests first and strive to exceed their service expectations.”

Factors Most Critical to Agency’s Success (Top 5 Listed in Order of Frequency Mentioned)

1. Superior customer service

2. Quality of employees and operations

3. A focus on growth, profit and retained earnings

4. Strong carrier alliances

5. Producer quality, recruitment and development

They recognize that to keep this kind of employee the agency must provide an environment that is not only a great places to work, but also fosters excellence. As one agent explained, “We put a great deal of emphasis on building camaraderie among a team of colleagues who are professional and responsive with our clients and carrier partners. Each colleague clearly understands the importance of attitude and the philosophical differentiation of our agency. Our

59 2007 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Executive Perspectives