Insurance agency owners identified account retention as the mostcritical factor affecting the ongoing value of their agencies,according to a recent survey by The National Alliance ResearchAcademy.

More than 200 agencies responded to the online survey, rating 38factors affecting their agency's value as an ongoingbusiness. Rankings were on a 1 to 5 scale, with 5defined as having a “critical impact on agency value.”

The top five were:

1. Account retention (percent of all accounts renewed annually):4.84
2. Quality of personnel (all employees' dedication, knowledge andexperience): 4.53
3. Quality of customer service (efficient service by knowledgeablestaff): 4.52
4. Profit margin (total revenues minus total expenses): 4.47
5. Public image (how an agency is viewed by clients, prospects andothers): 4.45

Other highly ranked factors include account development (4.32),growth in new business (4.18) and product expertise (4.01).

At the bottom of the list were elements like physical location(3.35), organization type (2.72) and fee income (2.58).

Agency owners were also asked to rank the most challenging andmost rewarding aspects of their jobs on the same scale. The topfive challenges were:

1. Finding and training new products: 4.02
2. Achieving agency growth objectives: 3.49
3. Establising personnel for perpetuation the agency: 3.45
4. Achieving profit objectives: 3.40
5. Instilling a sales culture throughout the agency: 3.38.

The top five most rewarding aspects of agency ownershipwere:

1. Growing the agency: 4.43
2. Helping clients with their financial needs: 4.38
3. Achieving agency profit goals: 4.29
4. Making a positive contribution to the community: 4.21
5. Earning high income: 4.07.

To purchase a complete copy of the study, go to TheNationalAlliance.com/publications.