Amid transitioning past the economic turbulence brought by the coronavirus pandemic and adapting to the challenges of a hard market, Best Practices agencies within the independent agency channel are showcasing remarkable organic growth and profitability, according to insights that emerged from the 2023 update of the Best Practices Study conducted by the Big “I” and Reagan Consulting.
This update marks the second phase of the three-year cycle, focusing on the firms that met the criteria as a 2022 Best Practices agency. Collaboratively conducted for the past 30 years by the Big “I” and Reagan Consulting, this annual study offers critical performance benchmarks across six agency revenue categories, ranging from under $1.25 million to over $25 million.
Key takeaways from this update encompass the following:
“The independent agency channel is healthier today than ever before, even as it faces challenges such as industry consolidation, increasing consumer expectations for value-added resources, insurtech competition, and a systemic lack of young talent. The study provides guidance on ways all agencies, not just best practices agencies, can continue to grow and stabilize their operations as we enter a hard market,” Big “I” senior director of agent development, research, and education Jennifer Becker said.
Regan Consulting partner Tom Doran also chimed in, commenting that this year’s results were unlike anything else published in the partnership’s last 30 years.
“Particularly encouraging is the fact that best practices agencies took to heart the study’s previous indicators of the need to focus on producer recruitment and development. These investments are paying off in excellent valuations—and while there’s still room for improvement, the study shows the top-performing agencies continue to demonstrate the rewards of purposeful improvement,” Doran said.
Recently, the association also announced the appointment of W. Michael McBride, president of Mason-McBride in Troy, Michigan, as its chairman for the 2023 to 2024 term.
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