IA Valuations has 5 suggestions for you to leverage this resiliency during some critical milestones in your career or in your agency's life cycle.

To the owner who wants to internally perpetuate – Identify who will be the people part of your succession plan. If you don't do so in a timely manner, history and today's market tells us that before you know it, the price of your agency could be too high for your successor to feasibly buy in. Your successor will want to pay you what you are owed, and you will not want to cash-strap them for the next 10-15 years. Do not wait to make and execute that perpetuation plan.
To the agency owner who wants to sell externally – The past, present, and future all point to your agency's value increasing. It can weather hard times when other industries cannot. Organic growth amongst agencies saw historically high marks in 2023 with the trend likely to continue into 2024. If you plan to sell externally, leverage history alongside the asset you have spent your life growing to be confident making a counteroffer.
To the producer who wants to own someday – Be proactive. Do not wait for situation X, Y, and Z to become true before you consider buying in. By the time your perfect buying scenario comes around, the agency's price may inhibit your lifestyle more than it would have when you first had the thought. Look at the past for comfort – yes, it's risky to become an owner, but agencies are resilient. If you don't sit on your hands, the investment will be worthwhile.
To the producer who is not interested in owning right now – Would you reconsider? The industry needs young, capable producers to make internal perpetuation possible and expand current owners' options beyond just an external sale. No current principal should be forced to sell externally if they do not want to. The insurance agency is an appreciating asset. History tells us that even throughout the hardest of times, the agency leaves its shareholders better off than others.
To the professional who is not in the industry – Despite its resiliency and value, the industry is still in need of new talent. Look at the past, consider the present, and be hopeful for the future. Becoming an insurance professional with an agency could be the most profitable decision you make!

Whatever position you find yourself in at an agency today, consider what more you can get out of your agency by investing in it. The insurance agency has proven throughout time that it's an asset with unmatched resiliency. Will you take the steps necessary to make the most of it?

Special Reports /

Leveraging the resiliency of the independent insurance agency system

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