The world of todays independent agent is dramatically different than it was 50, 20 or even 10 years ago. The 2009 independent agent has so many stressors, issues and distractions that its very easy to lose sight of the business primary purpose providing insurance advice and protection for as many families and business as possible.

There are the big issues of Federal regulation, health care reform and broker compensation disclosure that could have a significant impact on the survival of independent agencies. In addition to the big issues, agents have to struggle with possible increased CE requirements as well as the time and money costs associated with it. The State Insurance Fund continues to compete unfairly for business and is slowly taking over a larger percentage of the business. In addition many agencies have to deal with serious regional issues like a lack of market availability for coastal property.

The overall insurance business is changing as well. Insurance company mergers and acquisitions are creating reduced competition and increased volume demands on agencies. Increased independent agency mergers and acquisitions are creating larger and larger agencies and making it harder for the mid-sized agency to compete. There are some people in the industry who believe mid-size agencies are at risk and eventually could be gone.

So far our attention has been focused on outside issues and influencers. What are the issues affecting the day-to-day operations of an agency? Information has become a valuable asset and protecting it is a critical part of todays agency. Agents are tasked with protecting their client information from unauthorized use or theft. Controlling and accessing client information has become a critical issue for independent agents. Is your client information being used, without your knowledge and approval, by the various entities you share it with? When it comes to your insurance company partners, how much of your client information is stored on their servers and under their control? What happens when your partnership dissolves?

Client information and its protection has become a significant issue because of technology. There is a constant need to upgrade and add technology in agencies to be as efficient and productive as possible. There is a significant cost associated with the purchase, conversion and training associated with upgraded or new technology. One of the reasons agents need to work as efficiently and accurately as possible is more and more work, and potential opportunities for E&O claims, are being placed on the agency by the companies they represent.

The world is changing and so are the daily operations of independent agents. The current staff of many agencies is made up of baby boomers that contribute an enormous amount of experience and expertise. Many of these folks will be retiring soon and unfortunately there are not many young people looking to follow an insurance career and take their place. Even if an agency is lucky enough to attract a young person they will expend a significant amount of time and money to train that new person and get them to where they can handle the job of the person they are replacing.

Just like the workforce is changing so is the insurance consumer. Consumer purchasing habits are changing because of the wealth of information available on the internet. They are also being bombarded by a number of insurance companies trying to write their coverage. Whoever writes their insurance will be expected to provide instant service on a 24/7 basis.

With all this drawing the attention of independent agents its a wonder they have time to pursue their primary objective of writing new accounts and retaining their existing clients. Matter of fact, all these issues draw agents attention and many times keep them from concentrating like they should. Most of their competition doesnt have to worry about these issues as they either are large enough to have staff designated to monitoring and working on these issues or they leave it up to the direct writer carrier they represent. Its a wonder up against such odds that agents are as successful as they are.

The issues outlined here and the agencys need to continue to grow point out why a well trained and productive sales force is essential for the survival of todays independent agent. Because the principals and management of agencies have to grapple with the issues outlined they rely on their inside and outside sales staff. If your sales force is not working up to their potential or needs more attention to meet the production levels you need, then you need to invest the time and money into getting them where they need to be. Dont wait to do what is necessary as delaying could have a serious impact on your agencys future success.

Our business is getting more and more competitive and there is no room anymore for lackluster or sub par performance. Independent agencies have to be aggressive and effective in sales. It is the lifeblood of every agency. Their staffs have to understand this and accept the responsibility of working hard and meeting the agency sales goal. Ultimately their success will be a significant factor in the success of the agency. [IA]