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2007 Best Practices Study | Agencies with Revenues Between $5,000,000 and $10,000,000 | Executive Perspectives
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Executive
Perspectives
Profile
Agencies with Revenues Between $5,000,000 and $10,000,000
Maximizing Productivity
Although our industry has always complained about
the state of technology within the agency world, many
of these agencies are finding that technology is having
a very positive impact on their productivity and
customer service. Agents report that imaging and the
ability to go paperless has significantly improved
productivity, as has giving their employees dual
monitors and remote access to their systems.
Enhanced productivity has also come from
“measuring, monitoring and managing” productivity.
For many, this is measuring revenue per employee or
being more specific in looking at the number of
transactions or activity per employee. If you want to
get serious about improving productivity, you need to
start by measuring and monitoring performance.
Once this is being done, the key to these agents’
abilities to manage and improve productivity, is their
willingness to invest in employee training and
education. In addition, improvement has come from
developing standardized systems and procedures.
Finally, these agencies also report that they have
achieved significant improvement in productivity by
increasing the average account size and by providing
levels of service appropriate for given accounts.
Gaining a Competitive Edge
“The most sustainable competitive advantage that a
service business can have is the quality of the people.”
That adage is certainly supported by these agents who
feel that their greatest competitive advantage comes
from the quality of their staff. They also feel that
being privately-held gives them a material competitive
advantage in their ability to hire the best and the
brightest and that many customers would rather deal
with privately-held firms.
As would be expected, competitive advantage has
been created for these firms by adding value-added
services in both property and casualty and employee
benefits. They have also achieved competitive
advantage by focusing on selected niches where they
have developed specific expertise and services unique
to those practice groups and niches. With the average
firm in this group growing organically by 12.0% and
the top 25% growing by over 20%, it is clear that
they are finding competitive advantage.
Keys to Maximizing
Productivity
(Top 5 Listed in Order of Frequency Mentioned)
1. Effective use of technology
(imaging, dual monitors, remote
access, etc.)
2. Measuring, monitoring and
managing productivity
3. Investing in employee training and
education
4. Developing standardized systems
and procedures
5. Increasing average account size
Keys to Achieving a
Competitive Advantage
(Top 5 Listed in Order of Frequency Mentioned)
1. Strong, stable, well-trained staff
2. Being privately-held
3. Strong carrier relations
4. Value-added services provided
5. Niche focus (not being all things
to all people)