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2007 Best Practices Study | Agencies with Revenues Under $1,250,000 | Executive Perspectives
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Executive
Perspectives
Profile
Agencies with Revenues Under $1,250,000
Nevertheless, the agencies are remarkably effective at
keeping an array of markets to meet their clients’
needs. They are constantly looking for carriers willing
to work with small town agencies, finding ways to
show that the agency and its employees has
something different to offer, whether it is a specialized
designation unique to a particular industry or a
business plan for growth. Many have “clustered” with
other small agencies to consolidate a portion of their
business volume, thus giving them access to more
carriers, especially top-notch regionals.
While the agencies operating in larger communities
typically have better access to markets, they are
constantly reviewing their carriers to make sure each
market continues to be a competitive and viable
source for the agencies’ clients. As one top-performer
said, “They (carriers) want more business so we are
always making sure we have a good fit for the
business we write. Retention goes hand in hand with
increased business.”
The market challenges don’t end with limited access.
Surviving current market conditions has been hard for
this group. Coastal agencies, while enjoying some
benefit of hard market rates, are struggling against
their carriers’ low appetites for property exposure and
their clients’ needs for affordable insurance. Agencies
in other parts of the country, however, are living with
soft market pricing which makes organic revenue
growth even more difficult.
In spite of the continuous struggle to acquire and
retain markets, less than 30% of these agencies want
to merge or sell to a third party. Most want to remain
independent and perpetuate internally. Realistically,
they acknowledge an uphill battle in finding and
developing new employees that can facilitate this
dream.
Maximizing Productivity
With an average of 5.7 employees who must “do it
all”, this group of agencies relies on technology to
maximize productivity. 98% of the agencies utilize
carrier interface, both interactive and download, to
support their service and processing activities. Nearly
75% utilize scanning and document management to
streamline workflows. The use of dual monitors at
service workstations also supports a near paperless
environment. “We touch a piece of paper once…
period!” is a commonly expressed sentiment.
Top Challenges
(Top 5 Listed in Order of Frequency Mentioned)
1. Maintaining carrier relationships /
meeting premium volume
commitments
2. Surviving current market conditions
3. Finding and developing new staff,
particularly new producers
4. Funding and fully utilizing
available technology
5. Having time to do it all
Keys to Maximizing
Productivity
(Top 5 Listed in Order of Frequency Mentioned)
1. Heavy utilization of available
technology
2. Focus on total account
development and referral business
3. Effective incentives and rewards for
results
4. Ongoing employee training and
education
5. Effective communications