As we find ourselves in the midst of the holiday season, it may be an interesting exercise to consider how agents and brokers are positioned to respond to some of the traditions that are a part of Thanksgiving, Hanukkah, Christmas and New Year's. What do agents and brokers have to be thankful for? What would agents and brokers put on the list of gifts they would want to receive? And finally, what New Year's resolutions would they most likely be making?
As consultants to many of the best agents and brokers across the U.S. and based on the significant research we do every year through the Best Practices Study, the Organic Growth and Profitability Study, and the Study of the Leading Banks in Insurance, we are well positioned to know how these holiday questions would most typically be answered.
These are difficult times in the U.S. and throughout the world, but there's still a lot for agents and brokers to be thankful for, including the following: 1) We sell products that people/businesses have to buy in good times and in bad; 2) the independent insurance-distribution system has proven its worth and continues to control the majority of the commercial business and a stable portion of the personal business; 3) agents and brokers can make a great living (where else can people that were B and C students in college make more than their A-student friends who are now doctors, academics or unemployed?); 4) much asset value can be created through the growth and expansion of insurance brokerage firms; and 5) the long-term future of our industry looks bright (save some uncertainty in the health-insurance field).
Agents and brokers making out their holiday wish lists would probably ask for a number of things, including the following: 1) Elected officials in Washington and state capitals who will get spending and debt in check and that will create an environment in which the economy can get going again (I really do not think the answer is more government jobs); 2) a P&C market that begins to moderately and appropriately tighten (resulting in higher organic growth and better profit-sharing income); and 3) a free-market- (not government) driven health-insurance industry that will truly benefit consumers and maintain the quality of medical care (we do not want to see it become like a visit to the Department of Motor Vehicles). We could ask for more, but if we can just get these three our "thankful list" would grow nicely.
Finally, we need to consider what New Year's resolutions need to be made. I think the following represents the most appropriate: 1) Make certain that we recognize how good we have it (be thankful—be happy); 2) take a very active role in influencing next year's elections in the most positive direction (I will let each of you draw your own conclusions about the "most positive direction," but please do not offset my vote); 3) recommit to improving and expanding the quality of what we are doing for our customers (if we don't make them happy, we have a real problem); 4) recommit to creating an environment within our organizations in which our employees can prosper (they are the most valuable asset we have); 5) continue to invest in recruiting, hiring and developing the next generation of producers, managers, support staff and agency leadership; and, finally, 6) do something to help our friends and neighbors who are not as fortunate as we.
Unfortunately, the success rate of accomplishing New Year's resolutions for individuals (or agents and brokers) is low. While working with many of the leading firms in the U.S., we have the opportunity to see daily what distinguishes those that achieve what they set out to accomplish and those that don't.
Simply stated, the most significant difference is the quality and effectiveness of agency leadership. For those who wish to improve the likelihood of accomplishing their objectives, we would encourage you to get a copy of our recently completed research on the best leadership within our industry.
"The Leadership Series Study of CEOs" is available on our Web site for free.
We at Reagan Consulting add our thanks and appreciation for the privilege of being part of such a great industry and for the chance to work with and serve such great organizations. We wish you all a very happy holiday season and hope for a wonderful new year!
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