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Insurance agency owners identified account retention as the most critical factor affecting the ongoing value of their agencies, according to a recent survey...
Austin, Texas (July 16, 2013) – 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. Agency owners were surveyed as to what they believe are the most critical factors affecting their agency’s value. The results of this survey are unveiled and explained in the new study entitled, Critical Factors Affecting Agency Value.
To build value in their agencies, agency owners should concentrate on the most critical factors that add and preserve value. Thus, survey participants were asked to rate 38 factors affecting the value of an independent agency as an ongoing business. The following factors were rated as the top five:
1. Account retention
2. Quality of personnel
3. Quality of customer service
4. Profit margin
5. Public image
Agency owners and managers can use the results of the study to make sure they are focusing on the most critical factors. Achieving goals set higher than the average benchmark values for the critical factors is emphasized in this study because it can lead to an increase in agency value.
The economic value of an agency is more than some dollar amount based on a multiple of revenues or some other formula. The critical factors that are unique to each and every agency must be factored in. Areas for analysis include:
· Insurance companies
· Agency personnel
· Sales and marketing
· Income and expense
· Growth and perpetuation
Insurance agency owners and managers can acquireCritical Factors Affecting Agency Value to evaluate their current focus and adjust their future outlook; go to www.TheNationalAlliance.com.