Workers expect their defined contribution plans to play a greater role in their retirement income than annuities.
AUSTIN, TX, June 20, 2014 – The National Alliance Research Academy and author Jon Persky, CPA, CIC, PHR, have published a new study entitled, Starting, Buying, Selling, and Perpetuating Insurance Agencies. As the title implies, this book has many uses. For experienced insurance professionals who want to start their own agency, this study discusses different entity types, agency planning, carrier access, and managing income and expenses. For agencies that are buying other agencies, consider the economies of scale and find out where to find good agencies for sale. This book discusses selling considerations such as business challenges, industry consultants, and finding buyers. Perpetuation information includes defining the objectives, when to sell, and the different perpetuation methods.
This study is a comprehensive guide of over 300 pages. A survey of nearly 400 agency owners is included; here are some of the more interesting findings:
• The biggest challenges to starting an agency are carrier access (35%), generating new business (30%), and hiring quality staff (26%).
• The highest percentage of agency owners plan to retire between the ages of 66 and 70 years of age.
• In selecting an agency to buy, the most important factors are: finding an agency with the same carriers (51%), a location that is close to the existing agency (39%), profit history (28%), and size of the agency (27%).
• The most significant challenges after closing on an acquisition include: standardizing rules and procedures among all employees (31%), incompatible automation (25%), poor client retention (11%), and corporate culture clash (10%).
According to William J. Hold, CISR, Director of The Research Academy, “This study is a comprehensive guide for help with planning, implementing, and/or negotiating the necessary steps and transactions. It’s like having the right advisor in your corner to assist you in the decision-making process.”
Readers will find that the CD contains exhibits from the book – agreements, letters, forms, checklists – that can be tailored for their personal use. Starting, Buying, Selling, and Perpetuating Insurance Agencies combines advice and information with practical and useful exhibits. Price: $149 for printed version, $139 for e-book
The Academy is a non-profit organization funded entirely through publication sales and affiliation dues, and serves as the research and development arm of The National Alliance for Insurance Education & Research. Research grants are made possible through the annual dues of National Alliance members and The Academy’s Research Associates. For further information, contact The National Alliance, P.O. Box 27027, Austin, Texas 78755-2027; 800-633-2165; website: www.TheNationalAlliance.com.
William J. Hold, CISR
The National Alliance Research Academy