As SIS President, one of the most enjoyable experiences I participate in are the Partner XE Regional Learning Workshops. These learning events serve our independent insurance agency clients in many ways: investigating industry trends, illustrating how to maximize Partner XE’s capabilities and connecting users with the SIS team. Most importantly, these workshops accomplish an important goal—creating and fostering the Partner XE Community.
Over the years, these learning workshops have grown in popularity. As the number of agencies choosing SIS grew (and continues to grow), the community of clients soon called for a stronger regional focus. We responded with smaller regional events, closer to our clients. These localized, intimate settings mirror our users’ agencies and enable independent agents in the area to develop relationships with one another. Creating these opportunities to network and learn is an important part of making our Partner XE Community great.
The SIS team always comes prepared with Partner XE demonstrations and tutorials targeting agency-specific needs. Yet in each session, community members soon take the lead. Members are eager to share with each other creative ways to use Partner XE to achieve the results they’re after. Our team may start the conversation, but it’s our clients that provide the best insights.
Connections fuel development.
The conversations and relationship-building moments at each workshop are significant. When independent agents are given this time to connect, they learn from one another and get better together. Our clients bring expertise and experience to each workshop, asking questions and making requests to improve the Partner XE system. This attitude is unique to our Partner XE community. I hear time and again from agents that they leave the Regional Workshops feeling energized, knowledgeable, and connected. For me, there is no higher praise.
The more clients work with SIS, the more they realize we’re not the typical agency management system provider. And that’s by design. As we continue to grow and evolve, our investment in the Partner XE community increases, too.
Want to know more about our innovative Partner XE user community? Contact us at [email protected] or 800.747.7005, Option 6. I look forward to hearing from you!
Today may not be the day your agency changes hands, but it can be the day you’re ready. It’s never too early to prepare for insurance agency perpetuation. No matter how much you try to control it, life is unpredictable, and you may be met with a perpetuation decision sooner than you thought.
It’s difficult to get a return on the lifelong investment that is your agency without displaying its value, especially if perpetuation comes at an unexpected time. This is something you can, and should, get started on now.
37% of agencies surveyed named maximizing agency value as the most difficult part of perpetuation – read more.
Chances are, you’ve already started recording your agency’s value. Your agency management system is built to keep track of your agency, so it contains all the information you need to display its value. But, it’s up to you to use your system to its fullest and illustrate value to potential buyers. Here are a few tips to get you started on recording and showing your agency’s worth.
How to Record Agency Value in Your Agency Management System
Use your system to capacity. Take advantage of integrated systems, personalized workflows, document management, and other efficiency-wielding capabilities. The more you put into your system (i.e. documents, syncing emails, financial information, etc.) the easier it will be to get a record of your agency’s worth out of it.
Stay on top of provider updates. This relates to the previous tip: you need to have the most up-to-date system to maximize its use. And, the age and usability of your agency’s tech have a bearing on agency value. [bctt tweet=”The age and usability of your agency’s tech have a bearing on agency value.” via=”no”]
Get integrated accounting. Syncing your financials with your agency management system makes it infinitely easier to produce an accurate book of business. Integration ensures that every penny spent and collected is recorded. Though you will need to add adjustments when determining final value, a set record of income and expenses will make it that much easier to determine when the time comes to sell.
Planning to perpetuate to a family member? Check out our eGuide on How to Make the Switch.
Track annual revenue with reporting. Again, integrated accounting comes in handy here. Use reporting features to set up reads on your revenue each year, so you don’t have to dig back later. Showing steady revenue (or growth) over the years adds to your agency value in a big way.
Get on the cloud. Take advantage of your system’s cloud-based abilities. Cloud storage keeps your records secure, saving you from starting at square one if disaster strikes. This type of data protection also adds to agency worth.
Audit for E & O compliance. Go through your system regularly to check for duplicates and other errors. A clean system will boost your value. Stay ahead of issues with capabilities like email integration and mobile access.
Don’t Recognize These Capabilities?
If capabilities like secure cloud storage, integrated accounting, and personalized workflows sound unfamiliar, it’s time for you to reevaluate your current agency management system. Get in touch with us today at [email protected] to see how you can upgrade your management system, boosting your final value.
Getting Started Client Stories Getting Started Training Support Partner User Community “There’s always a fear of the unknown, but we are extremely happy with SIS and Partner XE. They’ve kept their word and helped us run better as an agency.” – Jim Waun,...
Planning for your exit from the independent insurance agency you helped build, whether passing it on to family or not, is rarely an easy task. However, succession planning is a necessary part of running a successful business, and it’s important to start the process sooner rather than later.
Two major factors to consider when succession planning are who will be involved and what components need to be included in your plan.
Who to include:
Business attorney
Tax professional
Successor(s) (internal or external)
Spouse and/or other family members involved in agency operations
Your list may expand beyond these key people, such as partners or advisors, but be careful not to include too many ideas and opinions. Although it is helpful to solicit the advice of others, ultimately you are the decision maker for your agency.
What to include:
Total cost of your agency: this should be revised regularly, including any outstanding debt.
Impact on employees: are there staff that will be leaving when you do? Staff you want to stay? You may want to “bonus out” the first group and provide a “stay bonus” (i.e. 50% more than a usual bonus) for the second.
Client care plan: Think about how to inform clients of your departure. This should include a transition plan for introducing clients to your successor. It’s important to have little to no interruption in client care.
Mentorship for successor(s):It’s best to have two successors for each principal owner. Look for younger agents so they have a longer potential tenure at your agency. Be intentional about mentoring these successors, including bridging the relationships you’ve built over the years and passing them on.
Your goals: These will differ by owner and, with multiple owners, may involve some compromise. Be clear about what you want whether it be a certain amount of cash intake, continued involvement in agency decision making, or a distinct perpetuation of agency culture.
When it comes time to roll out your succession plan, make sure you’re ready to retire. Although you may stay involved in your agency’s operations and/or decision making, it’s important to be prepared to spend less time focused on your agency. Invest in other interests, setting yourself up for success in other ventures.
Moving on from your agency can be difficult, especially because of the relationships you’ve built with your employees, partners, and clients. We at SIS value such relationships, which is why we provide pieces such as this for our clients and partners. We realize your agency is more than just a business, and treat it as such with our dedicated staff and individualized client care. To find out more about the SIS community, visit our website or contact us at [email protected].
Digital insurance options opened up new markets and improved communications for agencies worldwide. However, this growth goes hand-in-hand with the rise in cyberattacks over the past few years.
Recent reports estimated cyberattacks increased between 200% and 300% in 2020 and are doubling again. Similarly, ransoms from cyberattacks are rising by between 50% and 80%, making it a more attractive scheme for cybercriminals.
Labor market changes contribute to increased cyber-vulnerability as well. More people are working remotely, and their home offices may not have the same security measures as their company. Similarly, the recent labor shortage means companies are hiring more people more often and, in their haste to fill positions, may not provide ample cybersecurity training for new hires.
Independent insurance agencies are starting to feel the heat. Though independent agencies provide a level of personalized service and care big names never can, insurtech’s sophisticated insurance software is beginning to bridge the gap.
According to experts at PropertyCasualty360, “With increased competition from insurtechs and rising labor costs, in order to stay competitive, companies need to…provide a seamless omnichannel experience.” That means broadening how you’re serving your customers, keeping up with evolving customer demands.
Do you have the right insurance software to meet these growing customer needs?
Digital insurance is the future. According to Reuters, over $10 billion were invested in digital insurance technology in the first nine months of 2021 alone.
But, a rise in digital insurance tech use doesn’t mean a decline in demand for people in the industry. J.D. Power found that agencies that increased their “digital offerings” didn’t necessarily see a boost in customer satisfaction. While customers value the speed and efficiency digital tools offer, they also need that human connection.
Planning for your exit from the independent insurance agency you helped build, whether 