2020 Best Practices Study

how you can create plans today to mitigate the potential negative effects.

3) Consider account profitability. Do you know how much money you make on certain accounts, factoring in producer splits, support payroll, and other selling and operating expenses? Review your accounts to determine which are the most profitable based on size, business lines, etc. The results may surprise you. In a recent study conducted by Reagan Consulting of 50 independent agents, we found that commercial lines margins were actually higher for firms with smaller accounts, while there was an indistinguishable difference for employee benefits. Information like this is invaluable in developing business strategies going forward. 4) Implement a CRM system. Are you tracking producer activity? Do you actively communicate with clients and understand industry concentrations? Implement a new CRM system or effectively use your existing CRM system to monitor your communication efforts and track progress. Over time, these efforts will pay huge dividends; you will have real-time data on both producer and client needs and performance that you can use to manage future growth more intelligently. 5) Create frequent client touchpoints. How often do you connect with your customers? How has client contact suffered during COVID-19? Schedule periodic conversations/check-ins with your clients to touch base. Now, more than ever, is the time to check in on your most valuable clients. Focusing on your current account performance prepares you to weather the shifting economy. Armed with the in-depth knowledge of where your agency is working, how it’s succeeding, and where potential risks or gaps exist, you will be able to best navigate any continued changes with data-driven decisions that support your business. Knowing and actively communicating with your clients builds and strengthens relationships, enabling future growth. As the pandemic continues, this is a unique opportunity to reconnect with your business fundamentals – use the time wisely.

Without risk of hyperbole, the dynamic environment of mid-2020 is undoubtedly unprecedented. Between the COVID-19 pandemic and the associated derailing of the U.S. economy, the ongoing racial unrest triggered by the killing of George Floyd by police in May 2020 and the upcoming Presidential election, it would be difficult to point to a more uncertain moment in our lifetimes in which to conduct insurance agency business. To be up to the challenge, Best Practices Agencies must rethink the future, in both the near-term and the long-term. In the near-term, the pandemic and social unrest are shining a white-hot spotlight on the November 3 rd national elections, as both political parties and presidential candidates (Donald Trump and Joe Biden) stand at different ends of the policy spectrum. The winner will affect outcomes for people across all income levels, net worth, and economic segments. What

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