When it comes to agency perpetuation planning, you’re likely somewhere between square one and planning your retirement party. Let’s hope, unlike some of 2016 Future One Agency Universe Study respondents, you’re closer to a beach house and a cold drink. The study found 23% of agencies with one principal over age 66 said perpetuation was more than five years out. Age may bring wisdom, but it should also bring retirement before 70! (more…)
Summer is the perfect time for taking a break from the daily grind. Things slow down a bit and you’re able to get a little more space, breathe in some fresh air and start doing big thinking on how you can help your agency grow.
One of the best things to do over these long days is to read up on industry trends around how to record, analyze, and improve your business’s finances. Insurance agency accounting is something you have to do but may not be something you understand as well as you’d like. Take these relaxed days as an opportunity to begin learning.
This blog is an encyclopedia of information for owners without a background or experience in accounting. Accounting Coach teaches the basics through an interactive, easy to follow course. There are short explanations, videos, and quizzes and games to test your knowledge as you learn. Or, if you’re just looking to get the quick facts on a topic, you can jump to a section to learn more.
The CPA Desk offers insightful, easy to read posts on what you need to know about running your business. It also includes short videos to help explain or elaborate on topics. It’s a great go-to to keep you informed and updated on industry happenings.
The title of this blog refers to hitting the spot between Wall Street and Main Street, taking the “lessons learned from Wall Street” to small business owners. Author Seth David provides innovative solutions for small businesses and has a great handle on trends in accounting practices and tech.
5 Minuet Bookkeeping is made up of quick posts and short video tutorials on the ins and outs of managing your books. Veronica Wasek makes complex concepts seem simple, writing in a straightforward, easy to understand manner. This blog is a great place to go when you need to brush up on different accounting tasks or encounter an issue.
GrowthForce talks accounting to non-accountants. The blog offers tips and news on how to use accounting to help your small business succeed, in a way you can understand. An informative, easy read.
We’d be remiss to not mention the SIS blog, which covers dozens of topics including agency accounting. We post weekly on what’s important to independent insurance agencies, ranging from marketing to perpetuation to technology trends and more.
See a topic we’re missing? Contact us to let us know! We’re always looking for new ways to serve the independent insurance community. Happy reading!
Are you looking for the secret to a successful agency perpetuation? We’ve got it in three simple steps:
Plan ahead
Plan ahead
Did we say plan ahead? As in…NOW!
Whether you’re handing off or taking over an insurance agency, it’s never too soon to start thinking about and planning the transition. A large part of that planning is deciding who will be taking over.
Many decide to perpetuate internally, thinking it’ll be easiest to pass on operations to a family member or long-time employee. But, as any owner knows, running an agency requires more than logging hours. It’s what you do with those hours that counts. Here are three real steps you can take towards a successful transition with your successor.
Don’t get us wrong, long-term investment in the agency is a good indicator for a potential successor. A good successor knows your agency and its culture. Though they won’t run it the same as you, knowing the history and the spirit of the business is huge.
You’ll also want someone who is up to the challenge. Taking on an agency is a big undertaking. Look for someone who deals well with uncertainty and thrives on possibility.
Finally, leadership is essential. A great successor will be able to bring the team together and clearly communicate mission, vision, and goals. They’ll be able to motivate employees to take on the transition ahead, celebrating successes and keeping the team positive through challenges.
Are you asking these five questions as you prepare for perpetuation?
2) Get Them Involved
Once you know who will be walking the transition journey with you, get them involved in the process. Include them in strategic agency planning and get their input. The more your successor knows the better. Give them insight into why things are done a certain way, how decisions get evaluated, and their implication on the agency. Sharing these elements with your successor helps them build a broader perspective for when they take over the agency.
You should also include your successor in all perpetuation planning (you’re starting now, right?!) going forward. Again, the more they know, the smoother it’ll be to hand things over. Part of this planning includes being clear on how you want to be involved post-transition.
Read the dos and don’ts of taking on the family business
Lastly, be intentional about bringing your successor into the key relationships involved in your agency. As an owner, you’re well aware the important role each of these relationships play. Introduce your successor to industry group members, board members, carrier contacts, and your agency management system contacts among other key players.
3) Lean on Your Management System
One of the most challenging pieces of your #agency #transition is exchanging information and knowledge. Your agency management system is an asset here. Be intentional about using it to store data and create a comprehensive picture of where your agency stands. Work with your successor to create and understand financial and other reports and map out best practices for use.
It’s helpful to get a re-training from your agency management system provider. Use these sessions to introduce your successor to the ways an owner can maximize system use and get your employees on the same page about workflows and best practices.
The dedicated service team at SIS has been part of numerous agency transitions, walking with owners as they navigate the seemingly murky waters. Our team has been praised many times over for their aid during transition, and our PartnerNet portal acts as a 24/7 resource for our partner agencies.
If you’re thinking about making a change in your agency, get in touch with us. Contact the SIS team at [email protected] to get connected today.
Chances are you have at least once received a gift and your first thought was: “Thanks?”. That question mark means you either don’t know what you’ll do with the gift or you didn’t want it in the first place. Both are not great reactions. Unfortunately, this is how some people feel when it comes to insurance agency perpetuation.
Something as large and meaningful as your independent insurance agency shouldn’t be received with hesitation! Whether you’re turning over ownership to a blood relative or a member of your larger agency family, it’s important to have both the giver and receiver on the same page. To avoid an uncertain or unwelcomed transition, both need to be prepared for perpetuation.
The SIS Agency Perpetuation survey showed 60% of respondents chose a family member as a successor. See the full results here.
Tips for the Giver: Wrapping Up Your Agency
Start planning now: There is no “too early” in planning your agency perpetuation. Some suggest starting as early as your mid-30s. No matter what age you are, it’s a good idea to put thought into how your agency will transition now.
Get a plan in writing: Focus first on defining milestones and a final end date. You should also consider incentives for employees to stay past the transition, client care plan, successor mentorship, and your ultimate goals for perpetuation.
Keep your plan fresh: Perpetuation is a big deal, and can’t be completed in one shot. Review your succession plan annually and update as needed. Include your successor in these reviews if you can.
Track and integrate agency progress: Part of your annual review of your plan should include analyzing agency data. Keep track of how you’re doing through reports generated by your agency management system.
Get your accountant involved: There are multiple tax implications involved in agency perpetuation. Depending on how and to whom you pass on your agency, you may have to pay more taxes or get a break. Get your accountant involved right away to ensure you’re ready.
Tips for the Receiver: Respecting Past Practices and Making the Agency Your Own
Be a part of the plan: Be part of perpetuation planning as early as possible. Let the owner take the lead, but don’t be shy about inserting your ideas. It’s important to be upfront about expectations.
Decide on owner involvement: One big item to plan ahead is how much the giver will be involved after the transition. Be clear about what you want, yet keep an open ear to what the giver intends. It’s best to negotiate these items, along with anything involving cost and compensation, with a third-party, preferably a lawyer.
Practice patience: Be patient and practice compassion as you take ownership. The independent insurance business is relational, meaning there are a lot of emotional attachments to the agency itself. There can be some strong feelings that come with change.
Embrace innovation…slowly: Transition is the perfect time to try something new. But, don’t change everything at once. Come up with one or two areas to start with right away. Move to others as time goes on, giving staff and customers time to adjust.
Consult with staff: To help ease transition, consult with members of your agency before implementing anything new. Ask for input on how to implement the changes you have in mind and be clear about why you feel they’re important. Ask for their opinions on what other improvements can be made. Focus on building trust and gaining employee buy-in: you’ll need both before making any new moves.
Leveraging Your Consistent Resource: Your Agency Management System
One thing that will be there on both sides of your transition is your agency management system. This is a great tool for setting up your agency to transition. And, it will create a sense of stability for your staff as ownership is transferred.
At SIS, we’ve helped multiple agencies work through a variety of transitions. Whether it’s moving from a legacy system to our all-in-one, web-based Partner XE management system, transitioning staff roles within the system, or providing all-staff training for a fresh start, we’re here to help.
To find out more about SIS, the services we provide, and our leading agency management system, Partner XE, visit us at sispartnerplatform.com.
Whether it’s a quick morning jog, coffee in the car, or a shot of espresso at your favorite cafe, we all have a part of our morning routine that gives us that “Hello, today!” boost. Could your agency use that jolt, too?
Whether its tech tips, marketing tricks, news and information, or anything in-between, take advantage of the advice and inventiveness provided by great minds in the industry.
A recent post from Agency Nation hit on some of the best resources out there. Below are some of our favorite resources from the list.
Get targeted resources on perpetuation, cyber security, and more with the SIS eGuides
6 Online Insurance Resources to Follow
Agency Nation: Though specific resources are named on the list, the site itself has a wealth of information. Choose from articles, podcasts and a weekly video show uncovering the latest trends and tactics in independent insurance.
Insurance Thought Leadership: True to its name, this site brings together great minds in the industry. Read articles, listen to podcasts, or check out one of three blogs, including one focused on innovation.
The GROW Program: Stemmed from a social and digital marketing business, GROW offers a blog and podcast for agencies looking to hone branding and expand exposure.
Carrie Reynolds: Carrie has been at it since 1996, including creating her own brand, Insurance Goddess. Show co-owns her family-run agency and goes full throttle in insurance branding and marketing.
Coverager: With a focus on insurance tech, Coverager is a curation of what’s up with insurance, innovation, and the tools that make it happen. Check out its “Coverage Ponders” section for engaging articles.
Agency Checklists: Based out of Massachusetts, this site provides the latest in agency, insurer, fraud, and other industry news. It’s the straight facts owners need to make the best decisions for their business.
The conversation about improving your agency doesn’t have to stop at gaining tips and tricks. Keep the conversation growing by sharing your insights with your colleagues. We encourage Partner XE users to share their latest ideas through our Partner XE user community.
Whether it’s meeting at our regular Regional Learnings, shaping the Partner XE experience as a member of a workgroup or connecting on our regular monthly webinars, it’s important for the Partner XE community to connect in order to grow.
Get connected with the Partner XE community today! Contact us at [email protected] or 800.747.7005, Option 6.
Texting has quickly become one of the most popular and efficient pieces of insurance tech. Almost 90% of consumers say they’d like to be able to text businesses. It improves communication by making it easier to get in touch and get a response from customers and prospects, streamlining outreach with automation and integration into agency systems. Studies show that 98% of text messages are read, compared to 20-30% of emails and phone calls.
Texting is one of the tools all your team members can use, from producers to CSRs, as it speeds up communications and helps your agency move.
Social media marketing is nothing new in the larger marketing industry but may be novel for independent insurance agencies. This tool is something all agencies should include in their insurance agency marketing strategy for several reasons. Social media can help your agency show off your expertise, build trust with customers and prospects, and help you better engage your customer base. For independent agencies, social media is an excellent tool to amplify their valuable local and personal connections with their communities.
Whether your agency is on social media or not, you’re being discussed in the social media space. Join in that conversation! Get your agency started by following a few simple dos and don’ts in the social media sphere.
The insurance industry isn’t known for embracing change quickly: maintaining the status quo can seem easier than adapting new insurance tech. Despite this, insurance agencies tend to face a greater cybersecurity threat than other small to medium-sized businesses due to the sensitive and valuable data they collect from numerous avenues.
With cyberattacks on the rise, and the COVID-19 pandemic forcing many agencies to leave the traditional way of doing things behind, the need for insurers to maintain cyber regulation and compliance has never been greater.
With this in mind, here are four ways insurance agencies can secure their insurance tech to protect their business, employees, and clients.
