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Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
2010 Best
Practices Study
Agencies
with Revenues
Between
$1,250,000 and
$2,500,000
33
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
Recruiting & Developing Talent
With talent and capital at a premium, agencies have
also been very strategic about finding and developing
talent. Many agencies have targeted industry expertise
or cultural fit over insurance experience in their pursuit
of talent. “Find local people that know the business we
want to insure,” advises one agent, “and train them in
insurance.” Others are focusing on ensuring that they
are hiring the right people by increasing their pre-hire
screening.
Still others are seeking to differentiate their firms
through their hiring practices. “We are focusing on
higher caliber people from high-end colleges,” offers
one firm, “so that we can differentiate ourselves
professionally from the competition.” Indeed, hiring
from colleges was the third-most mentioned strategy
for hiring talent.
Once hired, however, developing talent becomes
critical – especially for younger talent or individuals
with no insurance expertise. To ensure proper
development, agencies are focusing on continuing
education, promoting from within and mentoring as
key strategies.
Achieving Organic Growth
Despite the challenges, however, many agencies within
the $1.25 million - $2.5 million category have
successfully held revenues constant or increased
revenues in recent times. How are they doing it? The
most important strategy for this group is account
rounding and cross-selling. Many firms are leveraging
their existing book of business for growth
opportunities. “Our primary focus,” commented one
firm, “has been to cross-sell and round out our current
clientele.”
In addition, agencies are mining their current customer
base another way – referrals. “Referrals, referrals,
referrals,” commented one agency. “We incentivize
every agency employee to sell by referral.” Referrals,
like cross-selling, can be an effective way to find new
sources of growth in an environment where capital is
limited.
A theme that ran throughout the responses agencies
have to growth challenges is being strategic about new
business opportunities. Whether it is leveraging
existing assets, focusing on products or industries in
which the firm has particular expertise or adding new
products to meet specific client demands, agencies are
ensuring that they get the most bang for their buck in
the pursuit of new business.
Keys to Recruiting/Developing Talent
(Top 4 Listed in Order of Frequency Mentioned)
1. Recruit individuals with no insurance
expertise
2. Focus on pre-hire testing
3. Solicit referrals / Seek recent college
graduates (tie)
4. Facilitate continuing education / mentoring
Keys to Organic Growth
(Top 5 Listed in Order of Frequency Mentioned)
1. Cross-selling / account rounding
2. Referrals
3. Advertising
4. Improve Carrier Commissions
5. Increase Product Offerings
“We are focusing on higher caliber people from high-end colleges, so that we can
differentiate ourselves professionally from the competition.”