2023 Best Practices Study

Conclusion

In the 30 years Reagan Consulting has partnered with the Big "I" to present the operating and financial results of the industry's top performers, we have never seen results like those reflected in this year's Study . The industry is healthier today than it has ever been. This is perhaps best reflected in valuations assigned to high-quality insurance brokers, both internally (for internal shareholder redemptions) and externally (prices paid by third-party buyers). In today's marketplace, most agencies perpetuate internally at 1.5 – 2.0 times revenue. Just a generation ago, a 1.0 times revenue valuation was commonplace. For agencies selling to third-party buyers, valuations of 2.5 – 3.5 times revenue are common. Not long ago, external valuations ranged from 1.25 – 1.75 times revenue.

As good as things are, we must not become complacent. The insurance broker landscape faces challenges that would also have been unimaginable a short time ago: Insuretech, industry consolidation, the demand for value added resources to satisfy clients and support producers, artificial intelligence, and a systemic lack of young talent entering the industry, to name a few. There is still much room for improvement. To realize our full potential as an industry, we must continue to execute the fundamental disciplines necessary to truly be considered a Best Practices agency: measure, adapt, and improve. Even better years lie ahead for agencies committed to doing so.

Benchmark your Agency

Elevate Performance and Agency Value

Compare to Best Practices

Process Improvement Cycle with Best Practices

Implement Strategies to Close Gaps

Identify Performance Gaps

Study Highlights

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