Carriers can be instrumental in helping agencies grow through referrals, expanded coverages, and clear business line or geographic expansion planning. And despite the challenges facing the industry and the broader economy, 67 percent of independent agents polled report that their firms grew premiums in 2012 over 2011.
This is one of the findings in a new survey of more than 1,000 agents and brokers recently released by Channel Harvest Research. The annual survey of agents on their attitudes regarding carriers – on a wide range of issues – is sponsored by Insurance Journal.
According to the survey, 47 percent of agents said they grew by more than 5 percent in 2012, while 20 percent said they grew by less than 5 percent. Only 14 percent of respondents reported that their agencies’ revenues dropped in 2012.
When asked what drove the revenue growth, 56 percent of agents polled attributed it to referrals. Another 10 percent cited increasing coverages to existing customers as the primary strategy.
Another 7 percent cited expanding into new geographic areas, while 5 percent said they grew production by adding new producers. Additionally, 4 percent cited a merger with another firm, while another 4 percent credited new product lines with their growth.
Word-of-mouth recommendations and actively soliciting referrals from both existing customers and acquaintances are long-established methods to grow revenue at agencies, but now approximately half of the agents also are using social media to generate referrals and promote additional coverages to existing customers, according to the survey.
“Carriers are instrumental in helping independent agents go after their growth goals, whether that is achieved through increased referrals or the other leading strategies,” says Steve Craig, Channel Harvest’s research director. “Whether it is by helping them getting up and running on Facebook or providing sales training for new products and coverages, agents often look to carriers for ways to better promote quality policies.
“Carriers that roll out new products and coverages that are supported by specific sales training and materials are much more likely to have agents take advantage and sell these to your joint customers,” Craig said.
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