2016 BPS Study

Brokerage Industry Perspectives How Best Practices agencies are leading the way

The current slowdown in growth is easily explained by the graph below. The U.S. economy is nearly stalled, commercial  P&C premiums are softening and health insurance premiums are barely increasing.  

Growth in Insurance Premiums and GDP

10% 15% 20% 25%

0% 5%

‐15% ‐10% ‐5%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q2 2016

Health Insurance Premiums

Commercial P&C Premiums

US GDP

Sources: Bureau of Economic Analysis, CIAB 

In the not‐so‐distant past, agencies were frequently local generalists that pursued most any opportunity that came their  way. Growth occurred without much effort and was largely taken for granted. Not today. With the economy struggling,  meaningful premium growth a distant memory, and a crowded broker landscape, agencies must work very hard and  very smart to grow. BPS agencies have risen to the challenge. 

Defining Competitive Advantage 

Winning in a mature and crowded marketplace requires strategic clarity. The competitive landscape is requiring brokers  to address several key questions: 

 Who is our target client?  

 What internal and external challenges are driving that target client’s decision‐making? 

 In what ways can our firm deliver unique and compelling value to the target client? 

 Are there specific resources we must provide to serve the target client’s needs? 

 Can we recruit and train specific employees to focus their efforts on the target clients? 

 Are there technology investments we can make to better serve these target clients? 

 How does our firm maximize our exposure to those target clients? 

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