I read a great article in an industry publication recently, outlining how insurers are seeking new product lines to offset the soft market. The article noted how carriers were exploring insurance products for lost profits resulting from reputational
I read a great article in an industry publication recently, outlining how insurers are seeking new product lines to offset the soft market. The article noted how carriers were exploring insurance products for lost profits resulting from reputational
When valuing a business, one factor an appraiser considers is market potential. There are admittedly times when an agency's potential seems to be limited, but this is almost never actually the case. Market potential for 99% of insurance agencies is
"The Stag Looking Into the Pool," by Aesop: A stag, drinking at a clear pool, admired the handsome look of his spreading antlers, but was very unhappy with the slim and ungainly appearance of his legs. "What a glorious pair of branching
In early October, Connecticut Attorney General Richard Blumenthal made headlines with his investigation into the reinsurance industry. Among other things, the AG criticized the practice of arranging reinsurance contracts in accordance with the "best
My research (available at www.burand-associates.com) strongly suggests that this soft market is going to be severe and prolonged. The forces creating this cycle are unique, and adequately understanding them is key to devising a strategy for surviving
I was recently hired by an agent who had just acquired another agency. The buyer was upset. He said the seller had misrepresented the agency's revenues, liabilities, company relations and growth, among other things. He also said the seller claimed
Binders may seem simple and benign, but it's precisely their innocent appearance that can lead to problems. Agency owners, producers and CSRs believe binders are so basic that nothing can go wrong when they issue one. But in reality plenty can go
Hurricane Katrina, the huge influx of liquidity into financial markets, the investigations into bid-rigging and the precipitous decline in national multiline P&C carriers will significantly affect the way independent agencies operate in coming years.
Someone recently asked me what causes agencies to go out of business. While I can't provide statistical proof, in my experience there are three factors that kill agencies far more frequently than anything else: partnership disputes,