Three Big Changes Happening Now
Your company is set to say goodbye to a quarter of its employees in the next few years. According to McKinsey & Co., as many as 25% of the most experienced people are eligible and expected to retire within the next five years. Does losing this much of your team cause you concern? It should because that is the reality of what is happening in the insurance agency world.
Add to that the fact that private equity firms have ratcheted up their M&A deal-making from 4% in 2006 to 54% in 2015 and that means the rules are changing for the producer’s financial future. Pressure to bring in more new business will rise as the private equity firms seek ROI as soon as possible. And, if the leadership of an organization cashes out, the more experienced producers who are left behind, typically with no ownership or equity, will be relied upon to maintain and possibly even grow revenue.
Pile on the fact that there is a huge gap in talent coming and today’s top producers have a lot on their shoulders. It’s a potentially advantageous situation when ownership and equity are part of the picture, but without that, the options or not so great…or are they?
A Better Option
There is a lot of misinformation circulating that those agencies that offer high commissions, freedom, equity, and ownership will make you pay for everything else, and in the end, it will cost you more. That is simply not the case. Those with the lifestyle model, sometimes referred to as the entrepreneur model, are focused on more than the bottom line. They provide the best P&C insurance producer opportunities because they’re focused on the producer’s life as a whole.
The best kept secret is that a better option does exist, and it’s not just a little better, it’s far and away a superior option for top producers. In the lifestyle model, you can:
- Own your book of business.
- Have the office support you need so you can pursue business unfettered.
- Have access to top markets and superior tools.
- Have the freedom to pursue business on your terms.
- Control your book of business upon retirement.
Most producers don’t know that they can have it all—they can have high commissions, equity in their book of business, the office support they need to acquire and maintain their accounts, top markets and tools, and control over their book upon retirement.
If you’d like to find out more about the current trends facing producers and how they might affect you, download our e-book on the “5 Key Trends That May Rock the Insurance Producer’s Financial Future.”