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2007 Best Practices Study | Agencies with Revenues Over $25,000,000 | Executive Perspectives
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Executive
Perspectives
Profile
Agencies with Revenues Over $25,000,000
Maximizing Productivity
As in prior years, participants noted use of information
technology as their most significant method of
maximizing productivity. Interestingly, several noted
document imaging as one of the most important
elements of their IT strategy, so the long-stated goal
of going paperless is finally being achieved by several
of these firms.
The second most common response was new and
encouraging. These firms noted they are actively
using Best Practices benchmarks to measure and
improve their operations. They are getting significant
traction in improving the performance of their
agencies by comparing themselves with the industry’s
top performers.
Gaining a Competitive Edge
Because the agency business is first and foremost a
people business, the top performers consistently point
out that their people are their most important asset
and their only sustainable source of competitive
advantage. They note that a strategy of hiring the
best and brightest employees, even at a significantly
higher cost, ultimately pays enormous dividends. One
top performer commented “We hire the best people
and pay them very well. We find they can do a lot
more work than less expensive folks and normally with
better attitudes.”
Another common response – and this points to a
major trend among this largest group – relate to the
development and use of in-house value added
resources. These resources, such as pre-loss and post-
loss consulting, are expensive to build in-house, but
are increasingly becoming an expected part of the
customer service requirements for mid-size and large
commercial accounts. There is a race going on among
mid-size and large insurance agents to build high
quality in-house resources.
Keys to Maximizing
Productivity
(Top 5 Listed in Order of Frequency Mentioned)
1. Use of imaging and other
information technology
2. Use of Best Practices as a
benchmarking tool
3. Hiring the best and brightest
employees and paying them above
market
4. Significant investments in employee
training
5. Compensate employees for
productivity
Keys to Achieving a
Competitive Advantage
(Top 5 Listed in Order of Frequency Mentioned)
1. We employ the best and brightest
in our market
2. Use of in-house value added
resources
3. Breadth and depth of carrier
relationships
4. Employee ownership
5. Industry specialization