MarshBerry 2017 Organic Growth Trends Report Now Available06.05.17
MarshBerry has released the 2017 Organic Growth Trends Report highlighting organic growth trends throughout the industry, as well as insight into the relationship between Talent Acquisition and Sales Performance.
One major takeaway from the report is that Organic Growth is reported to be lower in 2017 versus our previous study in 2015. In addition, High Growth Agencies (defined as the top 25% reported organic growth) reported a larger percentage point decline in organic growth compared to Average Agencies (defined as the average of all responding agencies).
“This reported decline in organic growth is a clarion call for all agencies to consider their decisions regarding agency operations, and the recruiting, training and validation of producers,” said Nick Kormos, Vice President of Sales Performance. “This consideration is even more important in today’s environment of rate pressure and uncertainty with the U.S. political and economic policy.”
The key factor impacting organic growth is new business production. In MarshBerry’s 2017 report, Average Agencies new business production as a percentage of prior year total commission and fees was slightly higher-to-flat at 12.8% and 12.5% in 2017 and 2015, respectively. In both studies, Average Agencies did not meet the recommended goal of 20% new business production and are at risk if the economic conditions and rate renewals soften further. High Growth agencies’ new business production was lower at 15.8% from 17.8% in 2017 and 2015, respectively. While High Growth agencies have established a tailwind to overcome market downturns, they narrowed the spread over 15% in our recent study.
“We attribute the new business production findings to soft market conditions and stubbornly low P&C rates,” said Kormos. “In a soft market with pressure on rates, larger agencies may have more leverage with carriers as well as a better ability to pressure marketing relationships to help combat downward rate pressure.”
Along with individual comparisons, the 2017 Organic Growth Trends Report presents high level analysis of key factors that contribute to the industry on a national level. The complete report offers insight on:
- Agency organic growth budget/ forecast.
- Strategies to drive organic growth.
- Key considerations and outlook.
- Niche and industry specialization.
- Industry growth by region.
The report is available for purchase by clicking www.MarshBerry.com/2017growthtrends
If you have any questions, or would like more information on MarshBerry services, please call MarshBerry at 800.426.2774, visit www.MarshBerry.com or contact via email at ThoughtLeadership@marshberry.com.