A strong insurance agency depends on steady new business and high retention, but many producers lose momentum once their books reach a comfortable size.
Some say they are too tied up managing existing clients to pursue meaningful growth. However, here’s the crux of that excuse: The producers who consistently bring in new accounts are the ones driving the agency forward.
A simple three-step annual review can help producers refocus their efforts, clear out unproductive accounts and create room for larger opportunities.
- Review your top producers’ books
Start by identifying the lowest-performing slice of your book, usually the bottom 25% in revenue. These accounts are typically better handled by a service team, an account manager or a newer producer.
Next, look at your best producers’ top-tier accounts to establish a benchmark for future prospecting.
For example, if the smallest account in a producer’s top 25% generates roughly $40,000 in annual revenue, that producer should set that number as the minimum target for new prospects.
Smaller accounts can still be written when appropriate, but any referrals below that threshold should be transitioned to the right internal team. In most agencies, the majority of revenue comes from that upper tier of clients.
- Transition smaller accounts
Once the lowest revenue accounts are identified, move them to team members who are equipped to manage them. Leadership should help determine the best home for each client to maintain service quality.
Producers often worry about losing long-term relationships or taking a compensation hit. In practice, these accounts usually contribute little to total income. Freeing up that time often more than offsets the small reduction in revenue.
Agencies that develop compensation models tied to growth typically see producers shed these accounts willingly and redirect their efforts toward larger opportunities.
Handing off small accounts allows producers to focus on strategic business development rather than day-to-day service work. Building a culture where accounts are matched to the best internal resources helps the entire operation run more smoothly.
- Use top accounts to fuel new business
High-premium clients are the best source of referrals for producers who can leverage those relationships.
The top producers, usually niche players, focus their efforts on one or two industries. Once they home in on those sectors, they become active participants in their communities, serving on trade group boards and taking a role in the organizations to open doors to new clients.
If your top producers have gotten rusty, they should revisit how they originally won their largest accounts. What solutions or insights did they offer to secure those clients? How did they help solve problems or support growth? With small accounts transitioned off their plates, producers can focus on using the skills they learned from bagging those clients to target similar prospects.
Managing capacity for long-term growth
As a producer’s book expands, capacity can become a limitation. Without a plan, they will eventually reach a point where maintaining existing relationships leaves no room for new business.
A book filled with many small accounts may look busy, but it rarely outperforms a book built around fewer, higher-revenue clients. Producers who manage their capacity, set minimum account sizes and focus on niche markets position themselves for sustainable, profitable growth.
