Maximizing Opportunities in a Hard Market
Due to factors like inflation, unpredictable weather patterns, and rising litigation costs, the insurance industry has been facing a hard market for several years. The rising increase in premiums and claims has kept insurance agents busy managing higher workloads as they strive to retain clients and negotiate with insurance carriers. However, there are opportunities for agents to advance in this market.
Be wise about maximizing this increase in profits and consider the following possibilities:
Bank your money for a later expansion or acquisition.
Are you earning more profits recently and want to make the most of the present increase? If you are hoping to expand your agency in the future, bank this money now and save it for a potential future acquisition. This will potentially help make the acquisition or buyout simpler and less expensive when the time comes. Talk to your banker on how to best save or invest these extra funds to be ready for when you need it.
Employ more staff.
The hard market could be more profitable, but you are probably going to have to put in extra work. More claims, means more negotiating with your carriers and having conversations with clients. Being proactive about letting your clients know what to expect, will lead to more loyalty. Ease the workload and consider adding additional team members and in turn grow your agency.
Invest in technology upgrades.
Technology is ever evolving and being up to date on all the new equipment will increase your efficiency and precision. Upgrade your systems to better meet the needs of your clients and carriers. With remote deposit and mobile scanning services, you can improve your agency's cash flow, eliminate the cost and personal liability of regular trips to the bank and more. Meet with the Treasury Management Team at your financial institution to learn more about these services.
Find ways to use your money more efficiently.
Do you know all of the financial services available and at your fingertips? And more importantly, are you taking advantage of these services that could add value to your agency? Put your money to work for you offering earnings credits, sweep services, and fraud detection tools. If you are interested in how these services can help your agency grow, reach out to your banker today.
Talk with your cash management support team on what is best for you during this learning experience. If you are not utilizing cash management to make your money work for you, SFB’s Treasury Management Team is happy to meet with you. Schedule an appointment here: SFB Insurance Agency Loans • Member FDIC (office365.com)