(The following article was derived from Ms. Cunningham's presentation at the AMS Users' Group 28th National Conference, which was held in April in Indianapolis .)

SINCE I started consulting with insurance agencies just over 20 years ago, change has been a constant in the industry. Mergers and acquisitions have left roughly the same number of agents working for fewer, often bigger, agencies. The small and midsize agencies that have survived have done so by using technology to become more efficient and finding new ways-often through affiliating with other agencies-to access a shrinking number of national carriers. They've also met the same challenges of managing employees and remaining profitable that any business faces.

My consulting visits with agencies have allowed me to see how the successful ones remain competitive in this changing environment. In this article, I'll share some of what I've seen-what the trends are, what works, what doesn't, and what concerns agencies have as they strive for success on an ever-changing playing field.

The insurance industry has changed significantly in the last 20 years. Twenty years ago, there were 70,000 independent agencies nationwide. Every year since 1996, published reports have put the number at 40,000 (37,000 might be the best estimate today). Not too far in the future, we could see as few as 20,000 independent agencies.