By: Tony Longo, Talent Acquisition Manager
Organic Growth: What is sustainable?
The age-old question many owners find themselves asking is, how can my firm continue to grow? There are only two ways to accomplish growth in the insurance industry: Acquisitive and Organic. Acquisitive growth is certainly the quickest but can also be cumbersome and demanding. Organic growth, while it may take some time, can prove to be quite sustainable and rewarding.
According to MarshBerry’s Market and Financial Outlook Study, the average insurance agency experiences anywhere from 3-8% organic growth year over year (YOY). However, we have seen the top 25% of private insurance firms experience anywhere from 6-21% organic growth YOY. Over the last 3 years (2016-2018), we have seen a steady increase from 12.1% organic growth in 2016 to 15.3% in organic growth in 2018. The same is true for the average private insurance firm. By now your asking yourself “how to I grow double digits?”, well the answer is a bit simpler than you would expect.
Nick Kormos, Vice President of Organic Growth Solutions at MarshBerry stated in a recent article in the Insurance Business that many firms are so service-oriented, that they forget to be sales-oriented. Because of this, many producers are primarily focusing on existing business and place a lesser emphasis on new business.
To increase efficiency, team members should have a focus point of work, producers should sell, and service staff should manage accounts. By drawing a line between sales and service, we free up time for producers to produce. This sustainable approach can be one of many solutions to achieve double-digit growth.
So, how are you going to create an efficient work process to build a sustainable sales system?
1Marsh, Berry & Company, Inc. Financial Advisory services include M&A Advisory*, Business Planning, Perpetuation Planning and Valuations. The Financial Advisory services provided by Marsh, Berry & Company, Inc. and its affiliates are not meant to be construed as services that constitute an offer to buy or sell, or a solicitation of an offer to buy or sell any securities, financial instruments or to participate in any particular trading strategy, or to provide investment recommendations on any company for personal investment purposes. Marsh, Berry & Company, Inc. and its affiliates are not rendering legal, accounting, financial or other advice.
*Securities offered through MarshBerry Capital, Inc., Member FINRA and SIPC, and an affiliate of Marsh, Berry & Co., Inc. 28601 Chagrin Blvd., Suite 400, Woodmere, Ohio 44122, 440-354-3230 Contact Us