2013 Best Practices Study

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

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.”

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

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

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.

2013 Best Practices Study

“Due to the total uncertainty of the healthcare situation, we are attending multiple seminars to ensure we understand all ramifications of the new law.”

Agencies with Revenues Between $2,500,000 and $5,000,000

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