One of the main orders of business for an agency that’s just purchased a counterpart is how to transfer the accounts that the latter has with various insurers. While it’s easier to roll them over if both agencies have appointments with the same carrier, it’s more difficult for accounts covered by insurers with which the…
If you are considering a merger with another agency or being purchased, there is plenty of due diligence that you’ll need to perform. Due diligence will span the gamut of issues, such as how contracts are structured, the soundness of the plan – and the numbers, of course. If your agency is being purchased or…
When the commercial insurance market hardens, like it has been during the last few years, it puts extra pressure on agencies and their producers to drive new business and retain existing clients. Producers have to step up their efforts to shop around for competitive prices for their clients, who are facing sometimes significant rate hikes.…
As insurance rates continue hardening across almost all lines, insurance agencies and their producers are the bearers of the bad news. Inflation has kicked into high gear for the insurance industry, in the wake of parts shortages, increasingly larger and costlier natural disasters, massive jury verdicts and reinsurance costs. All of those factors are increasing…
As insurance agency acquisitions continue at a blistering pace, more agency owners are considering cashing out. Some of them envision retiring early, traveling the world or permanently focusing on golfing, fishing or a life of leisure. But if that’s your plan, you may find selling your agency to one of the many expanding private equity…
While it would seem that the number of insurance agencies in the U.S. is shrinking judging from the steady stream of acquisitions by private equity buyers and growing brokerages, the number of independent agencies actually grew in the first two years of the COVID-19 pandemic. In fact, an amazing 4,000 independent agencies were launched during…