Solutions to grow your insurance business agency in recessionary environments
By Andrew Barile
Andrew Barile Consulting Corporation
Agency owners need to take on strategic advisory directors who work directly for the owner of the insurance agency to focus on new profit making opportunities. Owners of agencies are always working on operational issues and have no time devoted to future opportunities and are missing out on enormous profit concepts.
There are several kinds of opportunities for agency owners to review:
- Devoted time and attention to renegotiating the agency's commission structure including the contingent commission portion of the agency agreement
- Performing new insurance product development to expand into new product lines for the insurance agency (i.e., renters insurance, energy insurance, cyber insurance)
- Exploring the feasibility of accessing new growth capital for your start-up insurance agency
- Strategic advisory directors/consultants to insurance agency owners need to provide assistance, with a proven track record, particularly in developing relationships with major insurance carriers
- Industry expertise with insurance products
- Insurance industry carrier connections
- Insurance experience in retail, surplus lines, wholesale, and managing general agency formations
- Reasonable compensation structure for strategic advisory director
- Experience in implementing personal and commercial insurance products, homeowners, general liability for contractors, contractors all risk insurance policies
Insurance agencies need to facilitate additional marketing utilizing recent college graduates as employee costs are very low as unemployment hovers around 10 percent. Expiration lists, e-mail lists are all available from data firms. Marketing costs sometimes are shared by carriers as the recession has dramatically affected their premium volume. Strategic advisory directors/consultants can help the owner with this opportunity.
Insurance agent owners need to capitalize, structure implement their own agent-owned captive insurance company that specifically reinsures the agent's insurance carrier. Additional profit opportunities can be significant for the larger independent agencies. Ask your strategic advisory director to help you with this concept.
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