Ten years ago it took $5 million in total agency revenues and about $30 million in Property/Casualty premiums to land on the top 100 agency list. Now an agency needs to have in excess of $10 million in revenues and $60 million in premiums to make the cut. Ten years ago the average independent agency in the country had $250,000 in total revenues with six to seven people. Today the average is close to $600,000 in revenues, also with six to seven people. To use a phrase from Bob Dylan, "the times, they are a changing."

The cluster concept has been a popular one for doctors, dentists, realtors, and others for many years. Insurance agency clusters have been around for a few decades, but interest in them intensified during the hard market of the early 1980s. At that time, smaller agencies banded together to protect themselves against increasing carrier demands brought on by tighter market conditions.

COLLECTIONS The purpose of a collection system is to collect money owed to the agency without alienating the insured. In this section, we will answer the following questions: Who s...

COMMISSION-REDUCTION STRATEGIES by Ken Buehler Commission reductions have been in practice for a number of years and, given the current expense reduction needs of carriers, there are no r...

COMPENSATING PRODUCERS by Harry Brooks, CPCU, CLU There probably is no subject in the field of insurance agency management that is discussed as frequently, but on which there are su...

COMPENSATING THE CROSS-SELL by John Jaques A simple method for cross-selling employee benefit coverages to Property/Casualty clients is to establish a disciplined program for the ...

One of the most common questions we hear during consultation involves compensation for owner/producers, existing producers, and new producers. The principal question is how much and how to pay for production that compensates salespeople fairly and gives them incentives for continued growth.

The answer is complex because the same compensation models don't fit all producers.

CONSIDER A TWO-TIERED PRODUCER COMPENSATION SYSTEM by Chris Burand Is your producer compensation method outdated? Is it possible that theres a bettter way? This document by Chris ...

Here's a quick investment quiz: Which of the following investments will provide the best financial return over the next five years?
A.Microsoft stock
B.Coca-Cola stock
C.Citigroup stock
D.A newly hired Property & Casualty producer

The answer is D. No kidding.

To cross-sell effectively, you’ll need to define the “competitive advantage” that shows the client why buying from you will benefit them. Take these four steps to cross-sell your clients by showing them that you can meet their needs more effectively than their incumbent agent.