Is it time for a Valuation? Over 75% of Independent Agencies Increased Earnings in Last 12 Months.
By Elana Ashanti Jefferson | February 04, 2021, at 12:00 AM
Although some businesses will emerge on the other side of the COVID-19 pandemic looking like a shadow of their former selves — travel and hospitality being paramount among them — this year’s Independent Insurance Agent survey indicates that insurance agencies are weathering the storm.
Nearly half of respondents indicated they were able to increase sales over the last year, while 17.8% said their insurance production stayed relatively static in 2020.
That said, there is simply no way to have lived through 2020 without taking a serious look at one’s business strategy, which is reflected in the results of the 2021 Independent Agent Survey conducted in partnership with the National Association of Professional Insurance Agents (PIA).
“The evolution of agencies as a result of the COVID-19 pandemic is already underway,” says PIA National CEO Mike Becker. “It has always been said that one defining characteristic of the independent agency distribution system is its resilience. When you compare the results of this year’s NU/PIA Agent Survey with the results of last year’s survey, which was taken shortly before the onset of the pandemic, the findings are encouraging. There is a greater awareness of what needs to be done to ensure success including but not limited to a more robust embrace of technology now underway.”
Just under half of the survey respondents said their agency income increased in the last year, while 20.7% said it stayed about the same and about a third said they lost money in 2020. Becker continues: “Many agents are beginning to find that there are multiple effective ways to market, process business, establish trust, and sell more policies. The crisis is a mother of invention, and we are seeing innovation play out as agents change and evolve more rapidly than anticipated.”