Compare with the top agencies across the country
The IIABA Best Practices Study follows high performing agencies in six revenue categories to offer other agencies insight into their operations, and those agencies that implement Best Practices philosophies create more revenue and make better partners for the carriers they represent.
The average Best Practices firm grew organically by 6.9% in 2015, down from the recent high of 9.0% in 2012. While growth has slowed, the Best Practices agencies have found that specialization can enhance growth and create new revenue streams.
The consolidation pace has steadily increased since 2009, which M&A activity temporarily cooled due to the Great Recession. According to SNL Financial, 469 transactions were announced in 2015. The Best Practices agencies have been active in the acquisition market enhancing their footprint and increasing their agencies’ value.
The workforce is aging:
The average age of the employees at most agencies has significantly increased. Savvy firms are placing an emphasis on early succession planning for all key leadership positions. Best Practices agency recognize that their future independence hinges on creating an environment that attracts and retains talented employees to successfully perpetuate their business.
New technologies may disrupt the traditional broker model. According to CB Insights, a firm that tracks technology investments in the insurance industry (which they call “Insurtech”), there were 82 investments in insurance start-ups during the first half of 2016 totaling more than $1 billion. These start-ups are permeating every segment of the insurance industry. Best Practices agencies are ensuring that they are well-informed on new technologies and products and continue to provide their clients with the expert advice and stellar service that consumers expect.
SC Best Practices Agencies (2016):
Anderson Insurance Associates
CSP Insurance Services
SC Insurance Brokers
Become a Best Practices Agency
The Best Practices Agencies are selected every three years, with the next cycle of nominations expected to begin November 2018. Agencies are studied to provide benchmarks and operational information on growth, profitability, productivity and financial stability. Agencies that choose to participate submit detailed financial and operational information, which is scored and ranked objectively. Responses to management and industry-related questions are also requested.