Who better to talk about the industry than brokers? Each Friday, Insurance Business will run ‘Comment of the Week,’ highlighting a comment on an article from you, the reader.
This week’s comment comes from Rob Clarke, on the article Succession planning. The article took a look at family-run brokerages and the baby boom generation that is entering retirement age, and those independent owners who are either selling or looking to their children to take over:
“I spent last Friday in the U.S. visiting a large brokerage who has designed, and operated for over 50 years, a model designed for these situations: broker is ready to retire, children lack experience, ability, access to funds and/or markets to survive and prosper going forward.
“So this company becomes an equity partner providing the brokerage being sold passes the due diligence and acid test. The new owner either children, prior staff or someone already identified and working within the system manages the day to day operation but they have a very experience partner to lean on. There are a lot of other great value propositions provided, such as risk placement, claims assistance, legal assistance, a call center to outsource small accounts or PL as the brokerages desires, producer recruitment and training etc., etc.
“I was really impressed with the quality of the people and culture and it can work very well here in the right circumstances as it does there. Anyone wishing to discuss this in more detail is more than happy to get in touch with me.
“I believe that the best model is the one in which the manager and/or staff have a vested interest as well as some flexibility and I firmly believe that there are a lot of alternatives to keep the brokerage independent and hope that people don’t take the easy way.
“As one broker told me recently they feel a strong obligation to their staff and clients that they be treated the same, and the office continue to operate with the same customer focus as it did when they ran it. Enough said.”
