Have you set any agency New Year’s resolutions?
It’s that time of year again: a time to reflect on your insurance agency’s performance over the prior year and ways to use that information as a base for setting goals for the coming year. If you haven’t yet set any agency New Year’s resolutions, we have some food for thought courtesy of our partner, Oak Street Funding. Firstly they recently conducted a survey to determine underlying agency trends and found something that is worth thinking about.
Growth momentum is not on the side of older, larger, more experienced agencies but on the side of smaller, younger firms:
“Agencies with eight or fewer years of tenure were far more successful at meeting or exceeding goals than those with nine or more years. Nearly 75 percent of younger agencies said they met or exceeded their goals, and 10 percent said they greatly exceeded them. Just over half of older agencies claimed they met or exceeded their goals.”
Essentially, the younger agencies tend to be hungrier and the older agencies more staid – or in “cruise control mode.” Their blog post, Avoid Cruise Control, examines several reasons why this might be so and offers some antidotes.
Secondly, as a further backdrop to your resolution-setting process, check out this session from Oak Street Funding’s excellent webinar series, embedded below – Trends and Traits of Successful Insurance Agencies. The 36-minute session covers key management principles for maximizing your money, marketing, sales, people and processes. It’s presented by Agency Brokerage Consultants, a broker with a strong history of arranging insurance M&A deals.