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2007 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Executive Perspectives
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Executive
Perspectives
Profile
Agencies with Revenues Between $2,500,000 and $5,000,000
Keys to Their Success
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.”
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
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.
Challenges They Face
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.
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.
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