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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
The other challenges identified by these Best Practices
agencies included the challenge of writing new
business and the challenge of satisfying the
requirements of their carriers. In a soft property and
casualty market, the ability to attract new customers
can be aided by the improved pricing that can be
delivered in such a market. At the same time, a soft
property and casualty market can make it more
difficult to achieve the requirements of carriers to
produce a growing book of business when the existing
book is shrinking.
Maximizing Productivity
There was a period in time where a lot of industry
observers felt that technology was going to lead to
disintermediation and the decline of the insurance
agency/brokerage business. That, obviously, has not
happened. As a matter of fact, the Best Practices
agencies are now reporting that technology is one of
the key tools that they are using to maximize their
productivity. In addition to improving productivity,
technology also has the ability to improve the quality
of service provided to employees, it can provide better
management information and it can improve the
quality of life for the employees of the agency. As a
result, technology is not leading to disintermediation,
but instead is leading to improved operating
efficiencies for those firms that can effectively utilize it.
As important as technology is, productivity is still
going to be driven by the quality of your personnel
and how effectively they are trained and utilized.
Their effectiveness and productivity can be enhanced
by the third key, which is an on-going commitment to
enhance systems and workflows. Not only can
improvements in this area lead to improved
productivity, but like technology, they can also
improve the quality of the service provided to
customers and can improve the quality of life for the
employees.
The Best Practices agencies also report that improved
productivity for producers is going to come from the
recognition of and rewards for superior performance.
Best Practices agencies have found it advisable to
provide superior pay and benefits, for superior
performance.
Top Challenges
(Top 5 Listed in Order of Frequency Mentioned)
1. Hiring and retaining quality
personnel
2. Recruiting and developing
producers
3. Rates / the soft market
4. Attracting prospective clients
5. Satisfying carrier requirements
Keys to Maximizing
Productivity
(Top 5 Listed in Order of Frequency Mentioned)
1. Cutting-edge technology
2. Effective recruiting and training of
qualified personnel
3. On-going system and workflow
analysis and improvement
4. Recognition of and rewards for
production
5. Open, effective communication and
teamwork