Insurance agency owners identified account retention as the most critical factor affecting the ongoing value of their agencies, according to a recent survey by The National Alliance Research Academy.
More than 200 agencies responded to the online survey, rating 38 factors affecting their agency's value as an ongoing business. Rankings were on a 1 to 5 scale, with 5 defined as having a “critical impact on agency value.”
The top five were:
- Account retention (percent of all accounts renewed annually): 4.84
- Quality of personnel (all employees' dedication, knowledge and experience): 4.53
- Quality of customer service (efficient service by knowledgeable staff): 4.52
- Profit margin (total revenues minus total expenses): 4.47
- Public image (how an agency is viewed by clients, prospects and others): 4.45
Other highly ranked factors include account development (4.32), growth in new business (4.18) and product expertise (4.01).
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