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... shop. These agencies are almost religious in their fervor to: Do i...

...gnificant differences in ethnic, religious, or political backgrounds that mig...ther agencies, or other financial institutions; special programs targeted at ...

... that service is provided in an excellent (and standard) fashion and that every CSR is not a kingdom unto themselves. Managers are also second levels problem-solvers. Managers should never service books of business themselves. Successful agencies evolve service standards and strategic plans, to form common service cultures that permit them to manage service relationships in a way that never even tempts customers to shop. These agencies are almost religious in their fervor to: Do it right. Do it right the first time. Tell everyone how good we are. If we make a mistake, catch it, admit it, and make it right before the customer gets upset. FINANCIAL MANAGEMENT Successful agencies no longer run as "seat of the pants" operations. Whether large or small, these agencies have financial managers and rely on ... and program marketing. They set objectives each year to develop a new niche that can be marketed through their carriers — who are supporting those efforts enthusiastically. LARGE COMMERCIAL LINES The competition for Large Commercial Lines (however you define it) comes from a different direction. The large corporate agencies are concentrating their marketing efforts on the marquee accounts in every territory. The agencies created or bought by the financial institutions are also targeting these accounts. The most successful independent agents in Large Commercial Lines have professional sales management, professional dedicated producers, and constant professional marketing to bring them to the same marquee accounts targeted by their competitors. The field of play is even for the independent agent who maintains strong, close relationships with its carriers through a professional marketer, and hires and maintains only the kind of producers ...

... that all the owners of the agencies can get to know each other better. This will give you an opportunity to discuss some of the softer issues that are generally more critical to the success of a merger than the financial aspects. Is there a compatibility of management styles, underwriting and risk management viewpoints, organizational structures, personnel management disciplines, and personalities? Are there significant differences in ethnic, religious, or political backgrounds that could impact account retention and future management/ownership decisions? Have the parties competed so fiercely in the past that some bad blood might linger? Does one of the agencies have a questionable reputation in the industry or community? For any new venture to succeed, all the partners in the new organization must respect each others honesty and integrity. There'll surely be some rough ... 000 at the end of the year 2000 to only 20,000 by the end of 2005. Many small to medium-sized agencies are finding that they cant compete in a marketplace where insurance companies are requiring far larger premium commitments every year. Larger agencies, faced with perpetuation concerns and growth plateaus, are increasingly receptive to merger and acquisition overtures from larger agents/brokers, insurance companies, or financial institutions. Although the pressures of premium volume commitments, marketing opportunities, and perpetuation issues lead the list of reasons for entering into a merger, a number of other strategic opportunities might make such a move viable for an independent agency of any size. These reasons include: achieving economies of scale and reducing expenses (particularly service/support staff) adding management or technical expertise expanding the geographic marketplace rounding ...