5 / 204
2013 Best
Practices Study
Agencies
with
Revenues
Under
$1,250,000
5
Analysis of Agencies with Revenues Under $1,250,000
Key Benchmarks
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
After evaluating the changing requirements of
healthcare reform, agents can then determine how
they would like to respond. Often that response is to
involve a partner agency. “We have aligned with a
proven local financial services and benefits company,”
notes one agency executive, “to offer specialized
coverage and service to our clients.” The advantage
of a partner may be to leverage the resources and
knowledge that the partner has already built.
Health care reform presents both challenge and
opportunity. “It is a moment of truth for health
brokers across America,” responded one agency
executive. “Some brokers are not investing the time
and effort to be a good consultant. I see opportunity
for brokers who are prepared.”
Facing Challenges
The challenges facing this group of agencies are
diverse, but at the top of the list is talent. Whatever
the market position, strategy or location of a firm, an
insurance agency requires quality people to maintain
its success. Nothing is more critical to the agencies in
this study group than continuing to find and develop
these individuals. “We have little turnover,” remarked
one agency executive, “but it is imperative that
employees are satisfied professionally and personally
while working for our agency.”
The search for talent for these firms covers all areas
of the agency. From “hiring young people to get into
the industry” to “finding good, reliable support staff”
to “replacing employees that will be retiring in the
next five years,” the need for talented individuals
permeates all aspects of agency operations.
A close second to talent is technology. Agents are
working to keep up with advancing technology and to
use technology to their advantage in the marketplace.
One agency executive related that their number one
challenge is “finding ways to compete in the digital /
social media marketing world.” Many agencies echo
this concern. As the uses for social media in a business
context evolve, agents are working hard to stay at the
forefront.
Following talent and technology, the next several
challenges were carrier-related. From satisfying
carrier volume requirements to dealing with carrier
rate increases to competing with direct-writers, the
carrier universe has produced its share of challenges
for these firms. One agency notes that “Getting new
markets is the biggest challenge while balancing
‘feeding’ existing markets.”
The challenges mentioned by the agencies in this
study group are somewhat different than three
years ago, when maintaining growth and controlling
expenses were two of the top five challenges in the
aftermath of the financial crisis. Though there will
always be challenges, these agents are performing
well and are optimistic about the future. “All in all,”
one agency owner noted, “I’m still glad to have an
insurance career and own an agency.”
“We have little turnover, but it is imperative that employees are satisfied
professionally and personally while working for our agency.”
Top Challenges
(Top 5 Listed in Order of Frequency Mentioned
)
1. Finding and retaining talent
2. Technology
3. Carrier volume and carrier relationships
4. Rate increases due to retention issues
5. Direct writers
Top Adjustments
(Top 5 Listed in Order of Frequency Mentioned)
1. Doing nothing at this time
2. Partnering with a Benefits Firm
3. Staying informed
4. Selling Ancillary Products
5. L&H products not sold; no applicable
response