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... to a significant inequity in compensation and ultimately forced the sale of the agency at a price much lower than it would've been worth otherwise High-value agencies are developing an Internet strategy that, as often as not, is a sales strategy. Although many local and regional agencies won't conduct a significant amount of business online, most high-value agencies are creating an Internet strategy. The Internet can be used to sell products and services, provide marketing or service information, and/or reinforce existing client relationships. Local and regional agencies should focus their Internet strategy on the areas that add value to their existing and future client relationships. An agency in the Mid-Atlantic region developed a franchise program that focused on businesses in 22 Eastern and Midwestern states. The firm put coverage and application information on its Web site so that franchisees could download the appropriate information and return it to the agency for further underwriting. As a result, the penetration rate on the franchise program came in twice as high as the initial projections, with retention rates of nearly100% . The changing environment has created an immediate payback for many of the investments and business practices that define the nation's best agencies. Owners and managers of these high-value firms are making decisions today that will maximize the value of their businesses. This article originally appeared in The National Underwriter, Property/Casualty Edition, and is reproduced by permission. Robert Smith is a Principal with Reagan Consulting, Inc., an Atlanta-based management consulting firm that serves insurance agents, brokers and companies, as well as financial institutions. Please send your comments to [email protected] . Login ...

...rmation on its Web site so that franchisees could download the appropriate inf...