69 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
69
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
Key Benchmarks
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Facing Challenges
For many firms, the greatest challenge remains
identifying and attracting talent. Some view this
primarily as an industry issue with “relatively few
talented young people drawn to the insurance
brokerage business,” while others feel constrained
primarily by the limited applicant pools in their
market(s). In either case, finding and attracting
“experienced staff” and “self-motivated producers” is
a challenge. And for some, the pressure is mounting
as their Baby Boomer generation employees approach
retirement.
The second most commonly identified challenge
is generating organic growth. Although industry
growth has improved in recent years, many agency
shareholders and executives remain concerned about
their ability to sustain strong growth going forward
due to the uncertain economic environment and the
challenges of attracting and developing producers.
Other primary concerns expressed include managing
carrier relationships and keeping up with technology.
On the latter issue, social media and its effective use
as a marketing and communication tool is a common
concern for many.
In addition, perpetuation planning is a significant
challenge as some firms are struggling to balance
the financial demands of funding perpetuation
while also trying to grow. As expressed by one
executive, buying out older partners is “constraining
our investment capital and costing us opportunities
we could be taking advantage of right now in the
marketplace.”
“Due to the total uncertainty of the healthcare situation, we are attending
multiple seminars to ensure we understand all ramifications
of the new law.”
Top Challenges
(Top 5 Listed in Order of Frequency Mentioned
)
1. Attracting talent
2. Generating organic growth
3. Managing carrier relationships
4. Effectively utilizing technology
5. Perpetuation planning
Top Adjustments
(Top 5 Listed in Order of Frequency Mentioned)
1. Focusing on client communication/
education
2. No change
3. Actively watching/studying
4. Considering potential value added
resources
5. Emphasizing pursuit of larger accounts