2010 Best Practices Study
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
Mgmt. Perspectives
Recruiting & Developing Talent With talent and capital at a premium, agencies have also been very strategic about finding and developing talent. Many agencies have targeted industry expertise or cultural fit over insurance experience in their pursuit of talent. “Find local people that know the business we want to insure,” advises one agent, “and train them in insurance.” Others are focusing on ensuring that they are hiring the right people by increasing their pre-hire screening. Still others are seeking to differentiate their firms through their hiring practices. “We are focusing on higher caliber people from high-end colleges,” offers one firm, “so that we can differentiate ourselves professionally from the competition.” Indeed, hiring from colleges was the third-most mentioned strategy for hiring talent. Once hired, however, developing talent becomes critical – especially for younger talent or individuals with no insurance expertise. To ensure proper development, agencies are focusing on continuing education, promoting from within and mentoring as key strategies.
Profile
Keys to Organic Growth (Top 5 Listed in Order of Frequency Mentioned) 1. Cross-selling / account rounding 2. Referrals 3. Advertising 4. Improve Carrier Commissions 5. Increase Product Offerings
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Achieving Organic Growth Despite the challenges, however, many agencies within the $1.25 million - $2.5 million category have successfully held revenues constant or increased revenues in recent times. How are they doing it? The most important strategy for this group is account rounding and cross-selling. Many firms are leveraging their existing book of business for growth opportunities. “Our primary focus,” commented one firm, “has been to cross-sell and round out our current clientele.” In addition, agencies are mining their current customer base another way – referrals. “Referrals, referrals, referrals,” commented one agency. “We incentivize every agency employee to sell by referral.” Referrals, like cross-selling, can be an effective way to find new sources of growth in an environment where capital is limited. A theme that ran throughout the responses agencies have to growth challenges is being strategic about new business opportunities. Whether it is leveraging existing assets, focusing on products or industries in which the firm has particular expertise or adding new products to meet specific client demands, agencies are ensuring that they get the most bang for their buck in the pursuit of new business.
Insurance Carriers
Appendix
Keys to Recruiting/Developing Talent (Top 4 Listed in Order of Frequency Mentioned) 1. Recruit individuals with no insurance expertise
2. Focus on pre-hire testing
3. Solicit referrals / Seek recent college graduates (tie)
4. Facilitate continuing education / mentoring
2010 Best Practices Study
Agencies with Revenues Between $1,250,000 and $2,500,000
“We are focusing on higher caliber people from high-end colleges, so that we can differentiate ourselves professionally from the competition.”
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