Organic Growth: What is sustainable?

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?

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