Agency Best Practices

Insurers increasingly use multiple distribution channels to sell their products, so an annual best practices study just released by the Independent Insurance Agents & Brokers of America (IIABA) is worth reading. The 2007 study shows that overall agencies are doing much more with fewer people and show an organic growth rate that is much stronger than expected. The new crop of best practices agencies were asked to what they attributed their success and overwhelmingly, regardless of agency size, they noted “the quality of our people.† According to IIABA, this quality is defined as a strong work ethic, expert knowledge in agency products and services, as well as high ethical standards and dedication. These factors along with advanced proficiencies with agency technologies allowed the 2007 Best Practices Agencies to push productivity levels higher than ever. The 2007 study names 195 new agencies in six agency revenue categories ranging from under $1.25 million to over $25 million. It includes a new statistic, known as the “Rule of 20†, which provides a quick means of calculating whether or not an agency creates value for its shareholders. The leading agencies must be nominated for participation in the study. Check out further I.I.I. info on distribution.  

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