Agency profitability is a key metric in making sure you can achieve the highest value possible during a sale. What are some ways in which you can improve your profitability?
The first area we look at to determine efficiency and ability to improve profitability is with a review of the agency staff. Doing a review does not mean do we keep or fire someone. Many times we find this review will help us find ways to improve workflows, create processing efficiencies. The goal is not to just increase a person's workload, but create a process that give the support staff the ability to manage more business. An average underwriter or processor for most books of business should be able to manage $7M - $12M of premium.
Growth is the second area to examine. Many times people associate growth with new customers, and although this is a great way to add volume and revenue if you do not have strong processes with your support staff this may not actually improve profitability. Another way to grow without new customers is to internally cross-sell or promote new programs. A major issue we see with many agents is the fear to present new programs or risk management strategies because of a price. Don't let fear of price hold back your role to be an educator of your customer. Not every farmer has a fear of price, and not every program works for every farmer.