Independent agents have existed for a long time and will continue to exist, maybe in smaller total numbers but evolved into very large agencies and smaller “boutique” or specialized agencies. No matter the size or nature of the agency, in order to grow organically all independent agencies will have to expand on the value that makes them important to consumers.

That’s acting as the client’s trusted advisor, offering real value added and creating a strong communicative and caring attitude toward them.

To reach that goal many agencies will have to implement changes to address the issues present today. The following issues keep principals and managers of agencies up at night and if they don’t solve them they will have a drastic effect on an agency’s ability to operate and grow efficiently:

Substantial and widespread competition focused currently in personal insurance and moving into commercial lines of insurance.
Aging workforce with limited success in attracting new talent.
Changing consumer buying habits influenced by social media and technology.
Consumers’ acceptance of insurance as a commodity coupled with agency staff steeped in selling price instead of value.
Changing consumer demands – instant service provided when and where convenient for the customer and a desire to have a strong relationship with their agency focused on keeping them informed and properly covered.
Constantly evolving technology requiring a regular commitment of time and money to stay effective at writing and retaining clients.

To successfully change, independent agencies have to do an honest audit of where they stand in meeting these challenges and then develop prioritized plans to address each issue. Failing to do so will surely affect the future of an agency and may signal the beginning of a downward slide culminating in a “fire sale” of the agency to retain as much value as possible.

If you were given the opportunity to create the perfect agency for today’s market, here’s the characteristics I believe you would want to see:

Well thought out and customer centric workflow that maximizes technology.
Committed, well trained staff capable of value added selling. • Access to a wide range of carriers and products.
Sales oriented organization committed to building a positive customer relationship with clients and prospects supported by a strong marketing, public relations, advertising and social media presence.

Where does your agency stand today in achieving these characteristics? Like I mentioned previously be honest in your evaluation. Don’t feel like you’re the only agency in need of some serious changes because I believe that actually puts you in the majority. Many independent agencies have been working so hard to just survive that these important and necessary changes have been put on the back burner. My message today is that it’s time to bring these issues to the forefront and start to effectively deal with them if you not only want to survive but thrive in today’s marketplace.

As you explore what needs to be done for some of you the needs can seem overwhelming. The good news is that you still have time to commit to making the changes and moving forward. The key is to outline what needs to be done and then to actually start moving forward attacking the highest priority items first.

There will be challenges along the way. Where will the money come from to pay for some of these changes? Who will help me find potential new hires that are interested in growing into committed, outgoing, concerned and knowledgeable additions to our staff? What if my current staff won’t get onboard? How do I get access to a wide range of carriers and products? How do we make these changes while keeping the agency operating effectively and generating much needed revenue?

All of these are valid questions and concerns. There are answers out there–you just have to commit to finding the best solutions you can, even if some are temporary, until the permanent solutions can be put in place. Sound too overwhelming or impossible? What’s the alternative? Not being effective in today’s marketplace. Losing good staff who get frustrated and leave with the hopes of joining a more progressive, forward-thinking agency. Not only being unable to add carriers but losing some of the carriers you already have because you’re not growing enough or even worse shrinking. Watching your life’s work deteriorate to the point that you have no choice but to sell your agency to retain as much of the value as possible.

As I said before, there is hope. There are answers and you can improve your situation. The decision is yours. I hope you choose to thrive because I sincerely believe there is no better way to buy insurance than through a quality independent agent and I want to see as many of you thrive as possible. That’s been my life goal for almost 2 decades

Morph to Thrive and Not Just Survive

Jamie Deapo