Does your agency have value? What key factors could be simply overlooked in the equation of many potential success stories in the global marketplace?
Beginning in 1993, Best Practice Agencies have outlined these specific variables to help other companies adapt and survive in what can be an otherwise threatening insurance environment.
1. Growth
Sales velocity is a measurement designed to quantify new business expansion through commissions, written percentages of fees, and subsequent organic advancement.
2. Consolidation
Most Best Practice Agencies have the habit of going the extra mile in order to close the gap between lower internal value and higher ‘street value’, which is usually determined through third party buyers due to expense reductions.
3. Age
Stabilizing the age spectrum among your agency will assist in different perspectives, creation of new leadership, heightened production, and diminishes the possibility of succession challenges.
4. Disruptive Technology
The traditional broker model can be sensitive in the face of new technological advancements. This can be clearly seen in small commercial properties and tight-knit medical groups. It can also be a challenge to maintain client relationships and risk management.
In conclusion, being aware of the risks that many agencies fall victim to all too easily will allow your business to take one step further towards improvement, achieving higher goals, and ensuring overall prosperity.
Emily H. Harris
Economics Intern from University of South Florida St. Petersburg at Binger Financial Services, LLC | bingerfinancial.com