Agency Guide

Agency GUIDE

UPDATED SEPTEMBER 9, 2024 I VERSION 1

UPDATED SEPTEMBER 9, 2024 I VERSION 1

INTRODUCTION Congratulations on your decision to own or operate an independent insurance agency and let us be the first to welcome you to the business! We’re the Florida Association of Insurance Agents, or FAIA for short, and we pride ourselves on being among the most trusted partners an independent agent can have.

FAIA is a nonprofit state trade association of insurance agencies affiliated with the Independent Insurance Agents & Brokers of America, Inc., (IIABA) commonly known as the Big “I.” Since 1904, FAIA has been a fierce advocate for Florida’s independent insurance agents. Our mission is to serve the needs of Florida insurance agents and consumers by promoting a healthy and competitive insurance environment.

What does that mean for you and your agency? It means we’ve got your back when it comes to legislative advocacy, legal and regulatory guidance, products and services, and professional training. Whatever your agency needs, we’re here as a trusted business partner and a truly one-of-a-kind resource. Now, let’s get started!

This guide is for anyone interested in forming or needing advice operating an independent agency headquartered in Florida, with a primary focus on the sale/ service of property and casualty insurance. Independent agencies come in many different shapes and sizes, but they all have one essential feature in common: ownership of expirations. Put simply, that means the agent (not the company) owns and controls the policyholder information and retains the unrestricted right to place or replace coverage for their customer. Agents who do not own their expirations are commonly known as captive agents because the company owns them. Those agents are captive to the company.

In recent years, many captive agency owners have converted to “independent,” either by choice or due to their sponsoring company changing its approach.

This shift is a welcomed trend and only reaffirms the value of independent agencies as an incredibly effective form of insurance distribution. The barriers to owning/ operating an independent insurance agency are relatively low, and the potential for growth and success is practically unlimited.

This guide is broken into three main sections: Building an Independent Insurance Agency, Operating an Independent Insurance Agency, and Growing an Independent Insurance Agency. In each section, we’ll cover the important information you need to know and point you to resources that will help you build, operate, and grow your new agency.

If you are just getting started, we suggest you start from the beginning at Building an Independent Insurance Agency.

If you have already gotten through the basic set-up of your agency, skip ahead to Operating an Independent Insurance Agency.

If you’ve got some experience under your belt and are looking to expand your agency, go ahead and skip to Growing an Independent Insurance Agency.

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BUILDING AN INDEPENDENT INSURANCE AGENCY

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BUILDING

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AN INDEPENDENT INSURANCE AGENCY

There are many paths to opening an independent insurance agency. Two of the most common are agents stepping out on their own after having worked in an agency or converting their agency from a captive to an independent agency. Whether you chose your path or were required to change, becoming an independent agency owner is a big decision and should be carefully plotted.

This section will walk you through all the requirements of building an independent agency from the ground up and highlight tools you can use along the way.

Set a Realistic Timeline

Like any new venture, you want to set a realistic timeline that will ensure your success. You should expect it to take at least six months to launch your independent insurance agency, but exactly how long depends on many factors, including access to capital, licensing, and many of the necessary steps outlined in this guide.

Seek Legal Advice

You’re also going to need some help understanding the risks, costs, and administration involved with opening a new business. Make sure you seek advice from qualified legal and accounting professionals.

Secure Capital

Having the necessary funds is essential for acquiring all the vital components of a successful independent agency. Your agency’s cash flow will likely vary and be less predictable in the early stages of operation. That’s why we strongly suggest establishing a line of credit to provide stability when starting up your agency.

WE CAN HELP! InsurBanc, an FAIA Member Services Preferred Provider, is an independent community bank founded by agents exclusively for agents. Organized in 2001 by the Big “I” specifically to serve independent insurance agents, InsurBanc’s culture allows them to work with you as a partner to help optimize growth opportunities and manage your agency efficiently. To learn more, click here.

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BUSINESS PLAN You know the saying: Failure to plan equates to planned failure. It’s even more critical for independent agents, as just about every industry relationship you need will require a formal business plan. This includes carrier prospects for appointments and errors and omissions (E&O) providers. A business plan consists of, among other things, a narrative, resumes, and several financial worksheets. Here are five things every business plan should address:

People – Your business plan should include information about the people who will work at your agency. Make sure it includes resumes that describe their professional and personal background and their knowledge, skills, and abilities.

You also want to show off your track record, including who you know and how you are known within the community/industry.

The opportunity – Potential stakeholders are interested in how your agency will acquire customers and what products and services you will offer. You should also show that you know who your customer is and your advantages over your competitors.

The business environment – In your business plan, show that you

understand how the larger business environment, regulation, the economy, labor supply, customer markets, suppliers, competitors, etc., will impact your business and how you will navigate the environment.

The risks – Nothing comes without risk! The best business plans identify the risks and describe strategies to resolve them.

The numbers – Be realistic about where your revenue will come from, when

it will come, and how you will use it. Insurance carriers want to know about your growth projections, so you should have a start-up budget, a cash flow forecast, and a production forecast at a minimum.

WE CAN HELP! FAIA has worksheets and tools to help you get started.

Business Plan Outline for a Start-up Agency Start-up Budget Worksheet Cash Flow Budget Worksheet Annual Production Calculator

CHECKING ALL THE LEGAL BOXES Now that you have completed your business plan, the next step is to choose your business structure. There are many legal and tax considerations to consider as you prepare to launch your business.

Choose an Entity

There are six primary business structures in Florida: corporation, limited liability company, partnership, general partnership, limited partnership, and sole proprietorship.

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Get an IRS ID Number

You will also need a Federal Employer Identification Number (EIN) to apply for the license. An EIN, also known as a Federal Tax Identification Number, identifies a business entity. If you will have branch offices that transact business under the same name and Federal Tax ID as the main licensed agency, the branches do not need separate agency licenses, but instead must be listed on the main agency’s licensing records with the Florida Department of Financial Services (DFS).

Get Registered

After choosing what kind of entity your agency will be, it’s time to register your new business with the State of Florida.

Acquire Licenses To start operating your agency, you must obtain an agency license (§626.172, F.S.). To get an agency license, apply through the DFS’ My Profile. Visit the DFS’ Frequently Asked Questions page for more information.

If your agency is a sole proprietorship that is not operating under your name, you must register a fictional name with the Florida Department of Corporations and obtain an agency license. If your agency is a sole proprietorship and conducts business under your name, you must still obtain an agency license if you are employing or using the services of other licensed individuals (§626.112(7)(a), F.S.).

Once you receive your license, Florida law requires that it be displayed prominently at your agency so that potential customers who come to your agency can see it.

Naming Your Agency

In Florida, the DFS can disapprove the agency’s name unless it’s the bona fide natural name of the individual (§626.602, F.S.). Visit the DFS’ Frequently Asked Questions page for more information.

Agent-in-Charge

You’ve got a name, and you’ve got the licenses you need. Now, it’s time to appoint an agent-in-charge. An agent-in-charge is responsible for supervising all people working at your agency, and you are required to have one (§626.0428 and 626.172, F.S.). Only agents with the following licenses can be appointed as an agent-in-charge: 2-20, 2-16, 2-40, 2-18, and 2-15.

Keep in mind: you are required to notify the DFS within 30 days if the agent-in-charge changes (§626.551, F.S.). Each place of business of your agency (including branches) must have a designated agent-in-charge. An agent-in-charge can be appointed to multiple locations, but a licensed agent must be present for insurance activities to take place (§626.0428(4), F.S.). If a customer representative (4-40) is employed at your agency, a designated supervising agent must be permanently assigned to the same agency office.

Transferring a License

An individual coming from another state, and in good standing with their home state, can apply to the DFS to have their license transferred to Florida. Agents who transfer from another state may be exempted from having to meet Florida’s pre-licensing requirement and state exam if they have previously completed those requirements in their home state. Go to the DFS website for more information.

WE CAN HELP!

Have more questions? FAIA’s general counsel can help answer your questions and direct you to the resources you need.

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INSURE YOUR AGENCY Before you open your new business, you need to obtain Errors and Omissions (E&O) coverage. E&O coverage is a type of professional liability insurance that protects you, your company, and your work against legal claims resulting from mistakes in your professional services.

Errors and Omissions Coverage

Even though you try hard to avoid them, mistakes happen to everyone. If your agency is accused of making a coverage error, professional negligence, or failure to deliver on a business agreement, E&O coverage provides financial protection for your operation. You will need E&O coverage to secure agency appointments, as most carriers will not approve your appointment until E&O coverage is in place.

A few things to know about E&O coverage: Errors and Omissions (E&O) coverage is written on a “claims-made” policy form in comparison to most standard insurance products, such as a personal auto policy or general liability policy that is written on an “occurrence” policy form.

There is not a standard ISO policy form for E&O coverage, and coverage can differ widely between carriers.

Many markets offer E&O coverage, but because there is no standard form, not all policies are created equally.

WE CAN HELP!

FAIA Member Services (FMS) provides members exclusive access to the A+ rated Swiss Re Admitted Program as well as access to almost any E&O market (both admitted and non-admitted). Our team specializes in E&O coverage and regardless of your agency’s size, or how many years you’ve been in business, our team will find your agency the coverage you need at a competitive price.

Here are some of your options:

Swiss Re Admitted Program

The Swiss Re Admitted Program was developed by agents for agents and is tailored to provide the broadest protection available. The program is underwritten by the North American Specialty Insurance Company, a subsidiary of Swiss Re Corporate Solutions.

Program highlights include: • Defense costs in addition to the limit of liability.

• Deductible Reduction feature. If you need to file an E&O claim and the agency generates and maintains written documentation in the agency file of the refusal of any customer to accept any type of coverage or limit offered by the agency, 100 percent of the agency’s deductible for that claim will be waived up to a maximum of $25,000.

• $20 million limit capacity is available.

• Catastrophe Extra Expense coverage of $25,000/$50,000, with increased limit options up to $100,000/$250,000 available through endorsement.

• Insolvency coverage for placement with carriers rated B+ or better by A.M. Best or carriers covered by a state guaranty association.

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• PEO Broker coverage. Does your agency send business to a broker who then refers the business to a PEO? • Extended Insolvency coverage. An endorsement is now available to cover all eligible, non-admitted carriers (as defined in FS 626.918).

Swiss Re has a proven claims-paying track record, is an agent advocate for claims handling and coverage interpretation, and offers the kind of outstanding customer service that FAIA members deserve.

Additional Options

Through our affiliation with IIABA, FMS has many established relationships with both admitted and non-admitted E&O carriers. These markets may be a great fit for member agencies currently ineligible for the Swiss Re admitted program or that just want to explore other options. Additionally, FMS has specific E&O markets available for start-up agencies and those which have been in business for less than three years.

EXTRA LAYERS OF PROTECTION To get your agency off the ground, you will need to prioritize the essentials, like licensing and E&O coverage. Once those items are taken care of, there are a few additional layers of protection to consider.

WE CAN HELP! Our Professional and Management Liability team has the expertise to walk you through additional insurance options to help you build the best protection package for your agency.

Here are a few of the additional coverages we can help with:

Cyber Liability

FMS offers a comprehensive services-based solution to data breaches that focuses on the coordination of the expert forensic, legal, notification, public relations, and credit monitoring services that clients need to satisfy all legal requirements and maintain customer confidence.

Employment Practices Liability (EPLI)

FMS offers broad policy coverage for discrimination, harassment, and inappropriate employment conduct, including hostile work environment, failure to hire or promote, wrongful demotion, negligent evaluation, deprivation of career opportunity, retaliation, wrongful discipline, libel, slander, defamation of character, and invasion of privacy.

FMS also has access to a market with the ability to offer Wage & Hour defense coverage subject to underwriting review. Most carriers no longer offer this coverage in Florida.

Commercial Umbrella

FMS offers provides increased limits of financial protection to your agency from unexpected risks and increases your liability protection should a lawsuit max out the limits of your E&O coverage.

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MARKET ACCESS Prepare for Carrier Appointments

Your agency can’t sell insurance without access to insurance companies or managing general agents, so it’s a must to secure good carrier appointments.

Getting appointed with a carrier usually requires: experience in the business; a proven track record of selling and marketing; a geographically desirable marketing territory; and a solid proposed business plan.

How to Attract Carriers

When it comes to attracting carrier companies, you want to make sure you are emphasizing sound business practices and profitability, expressing your desire to work collaboratively with companies, and highlighting a geographically appealing marketing territory. Remember, most companies are looking for a long-term, mutually beneficial relationship.

Insurers typically weigh several factors when evaluating agency representation: Location and appearance: Is your agency accessible to the public? Does your agency have the carrier’s desired clientele?

Financial information: Does your agency have consistent profitability? Does your agency have good collection practices?

Type and mix of business: What does your agency’s average client look like?

What kind of specializations does your agency handle? What is your agency’s retention rate?

Other insurers represented: Does your agency have carriers that are duplicative or have very similar appetites?

Loss experience: Does your agency write profitable business? How do your agency’s loss ratios stack up with the competition?

Personnel: Carriers look at factors including professionalism, experience, and turnover.

Business plan: Does your agency have projected growth areas? Can your agency meet company production quotas?

Perpetuation plan: Who will be running the agency five to 10 years from now?

How are they going to be trained for the job? What financial arrangements are involved, and how are they guaranteed Automation: What are your agency’s company interface capabilities? What are your agency’s plans for automation in the future?

Get Appointments

For property and casualty insurance, most companies are looking for a long-term, mutually beneficial relationship. At first, your market appointments will likely come from indirect markets and a few direct appointments. But once you secure those appointments, you can begin writing your first policies!

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You’ve got several options for gaining access to markets: Direct Appointments: Ideally, you want to secure direct appointments with established carriers. However, as a new agency, direct appointments will be hard to come by since many carriers want at least a few years of experience, a successful track record, and an existing book of business.

Wholesalers & Managing General Agents (MGAs): Indirect markets such as wholesalers, MGAs, and cluster organizations often have little or no volume commitments and pay you a commission rate that generally is less than what can be obtained through a direct appointment.

Market Aggregators: You could also join an established insurance network. While these organizations may help new agencies get access to unattainable markets and niche programs, you would, in return, pay a membership fee and/or percentage of commissions to the group. If this is an option you consider, be sure to review the contractual relationship with these entities carefully, especially as it relates to ownership of expirations, commission or revenue sharing, and exit costs.

WE CAN HELP! Independent Market Solutions (IMS)

IMS facilitates relationships for agents who may be challenged to obtain direct appointments with various carriers. The program provides access to personal, commercial, and some specialty lines, offers complete ownership of expirations and competitive commissions, and, most importantly, affords qualifying agents a path to direct appointments with several established carriers.

Big “I” Alliance Blue

Formerly known as Big “I” Markets, Big “I” Alliance Blue is IIABA’s free online market access placement center program. Members are provided with access to specialty/niche coverages, program business and hard-to-find markets. Their carrier partners offer access to products, with new carriers being added in response to member needs.

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CONSIDER COMPARATIVE RATERS Comparative raters are best utilized as a single point of entry to help cut down on unnecessary multiple entries and operator error thus helping to reduce your E&O exposure. Some comparative raters will be able to export and import with your management system helping to save time with data entry. Not all comparative raters will rate all lines of business. Some only do auto while others only do homeowners.

There are comparative raters that will help with ccommercial lines and Flood as well.

Please note that if the comparative rater is not going to the carrier site then you may not be receiving true quotes as the filed rates may have changed and the comparative Rater may not have updated their system yet. It is best practice to use the quotes from the comparative rater that provides you a quote number from the carrier so you can go back to that carrier and make any additional tweaks the customer may need.

WE CAN HELP!

FAIA members can view a list of rating tools in the marketplace on our website.

FAIA members also have access to Catalyit, which can help you source technology solutions for your agency. With their community-based platform, you can access in-depth tech assessments, take advantage of monthly live training, and connect with peers, experts, and providers to find the best solution for your agency. Visit Catalyit’s website.

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OPERATING AN INDEPENDENT INSURANCE AGENCY

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OPERATING

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AN INDEPENDENT INSURANCE AGENCY

Congratulations on officially starting your new independent insurance agency! Now that you’ve gotten through the basics of getting your business established, it’s time to start giving your agency the structure it needs to be managed successfully. This section will cover setting procedural guidelines for running your business, information on how to attract more markets, the importance of an agency management system, and more.

AGENCY MANAGEMENT SYSTEMS

If you want to have a successful independent insurance agency, you need to have a good Agency Management System (AMS) to back you up. Your AMS will allow you to centralize your customer files, streamline your business processes, and help you maximize your profit.

An AMS isn’t something you want to skimp on. At a minimum, you want to choose a system that performs the basics—like policy management, certificates, and ACORD forms—and enhances overall productivity.

In choosing an AMS, remember that this is a long-term investment. Changing an AMS is difficult and time-consuming. Take your time and look to see if the AMS can still handle your business five to 10 years in the future as well. Most systems are similar, but there are some key questions you should ask yourself as you prepare to spend anywhere from $1,000 to $5,000 on a system: • What is the reputation of the vendor?

• Are they well known in the industry?

• What is the service record of the vendor?

• Will you be able to get help when you need it?

• Can they provide you with a list of customers that you can contact for reference?

• Does the system have a user group?

• Is the vendor company financially sound?

• Does the vendor strive to follow industry standards and are they an ACORD-approved vendor?

• Does the vendor support company downloads and “real-time” transactions with carriers like inquiries, claims, endorsements, etc.?

• How do they bill (per user, per agency)?

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• What are additional costs?

• How often are they updated and improved?

• Does your agency plan to have an Agency Management System manager?

WE CAN HELP!

FAIA members have access to Catalyit, which can help you source technology solutions for your agency. With their community-based platform, you can access in-depth tech assessments, monthly live training and connect with peers, experts, and providers to find the best solution for your agency. For more information, click here.

PROCEDURES, CHECKLISTS, AND RECORD RETENTION Workflow Procedures

Most people, in order to perform their job to the best of their ability, require some kind of structure. Without some written guidelines, your staff is forced to use their own best judgment in a variety of circumstances. While their judgment may be generally sound, problems will almost certainly occur when a mix of different procedures are developed and every employee is operating under their own system instead of one created by management. Consistency in practices and procedures regarding how business is done is a critical component in E&O claims prevention.

Your agency needs structured practices and procedures to reduce the chances of errors and to provide consistent quality service to your customers. The goal for your agency is invariable practice, meaning your staff is doing the same thing the same way every time.

This can only be accomplished if your team follows a procedures manual consistently.

Remember, even if an agency has good practices and procedures in place, they are not helpful if your team fails to adhere to them, and that can create a real exposure to E&O claims. As mentioned in the AMS discussion above, some AMS systems can also provide retention and workflow procedures.

Your procedures manual should be adaptable to meet business demands, but it should also be structured so you can enforce how you want your business to run. The more your procedure’s manual reflects your agency activities, the easier it is for your agency to use it.

WE CAN HELP!

FAIA members can access an excellent Agency Operations and Procedure Manual at a special discounted price, thanks to an exclusive agreement with The Moberg Group. The manual can be easily customized to meet the needs of any agency, regardless of size. The manual includes procedures for all property and casualty business lines, general guidelines for internal operations, financial services procedures, and more.

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Coverage Checklists

Developing and using coverage checklists for personal and commercial lines serves two primary purposes.

First, it provides a value-added service that ensures your client’s insurance programs are well structured. Not only does it help you understand your client’s needs, but it also helps you better identify and cover their exposures. Having a checklist available when talking to prospective clients can make sure they understand what they need and what they are getting, and they, in turn, are better satisfied.

Second, your agency can better document that it discussed a wide range of coverages with the client. If a client learns their claim won’t be paid because there was no coverage, but that it could have been covered under a policy with different options, they may look back and accuse you of never recommending those options to begin with. A coverage checklist that the client signs can serve as a credible paper trail to eliminate any potential E&O claims for failing to recommend coverage. If you identify an area of coverage for which your agency does not have a market to provide coverage, it is important that you address that concern with the client.

Ultimately, happy clients will be impressed with your level of professionalism and will become more comfortable going to you for additional products or referring family and friends.

When using checklists, you should keep in mind the following questions: • Is any form of coverage currently in effect for this exposure?

• If this coverage is not provided, should it be?

• Was coverage previously contemplated but not purchased? If so, why?

• Does the reason still exist?

• If coverage is provided, should it be modified or dropped?

• What exposures are currently underinsured or uninsured?

WE CAN HELP! If your agency is an FAIA member, you have access to a product through Rough Notes called the RoughNotes Advantage-Plus. The cost is $700/year with member-exclusive pricing (use code 1POLASPEC), and it provides coverage checklists that: • help you understand the exposure of businesses in more than 700 different industries, including recommended minimum coverages.

• create and print comprehensive questionnaires to collect the information necessary to complete ACORD applications.

• help you learn from a comprehensive list of coverages with succinct definitions to enhance understanding at the point of sale.

• help document the customer file in the form of a comprehensive checklist of coverages offered, accepted, rejected, or not applicable, which is signed by the customer and stored in the file.

FAIA has also created two sample checklists to help agents with this important procedure: • Personal Lines • Commercial Lines 14

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Preserving Records

In Florida, you must maintain insurance policy records for at least five years after the policy expires (§626.748, F.S.). The documents must be accessible to the policyholder and DFS by either hard copy or electronic. If a third party maintains the agent’s records, the agent will provide the DFS access to those records (§624.318, F.S.).

Records that need to be preserved include: • Daily reports • Applications • Change endorsements • Documents signed or initialed by the insured • Insurance policies

Human Resource Needs

The key to any successful independent agency is the people who work there. Operating and maintaining a successful independent insurance agency requires strong skills in recruiting, training, and managing employees. Adopting good HR management practices can help stabilize your agency staffing needs and ensure your business complies with state and federal employment laws. Finding and recruiting talent is a challenge in every industry, but it can be particularly challenging in insurance. The Florida Department of Economic Opportunity estimates that, on average, the insurance industry will add 1,887 new jobs a year through 2026, and we’ll need to replace more than 5,270 positions left open by retiring workers over the same time frame.

WE CAN HELP! FAIA, fueled by the fundraising and organizational efforts of the Good Works Fund, is aggressively promoting risk management and insurance associate degree programs to Florida state colleges. By law, students who receive an associate degree that includes nine credit hours of approved insurance instruction graduate ready to work with a 20-44, 4-40, and, depending on the coursework, 2-15 license—with no state exam required. FAIA members have the opportunity to support these college programs and, in turn, potentially find qualified candidates for their agency.

Students enrolled in risk management and insurance programs at the 11 participating state colleges, as well as those in the Florida State University and University of South Florida programs, are provided complimentary memberships to FAIA’s Young Agents Council (YAC).

As YAC members, these students have the opportunity to learn more about the industry, meet member agents, and, hopefully, find career opportunities after graduation.

Here are some additional resources from IIABA to help you manage your agency more effectively: • Human Resources • Talent Recruitment and Development • Management

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Managing Producers

It is imperative for agency owners to understand their rights under common and contract law to better protect the agency’s core asset, its policy expirations. Whether employees or independent contractors, you MUST execute an agreement with your producers.

Professional Development

As you’ve probably gathered by now, the continued expansion of your agency is directly tied to how well you can keep adapting to the industry innovations around you. That’s why ongoing professional development is essential.

WE CAN HELP! FAIA launched the first state-sponsored insurance education program in 1937 and has been leading the way ever since. FAIA’s programs—from continuing education to prestigious professional designations—are nationally recognized for the quality of curriculum and instruction and are offered to match member needs, schedules, and budgets.

Find out more about our classes, workforce development programs, and more, on FAIA’s website.

Get Involved

As you continue looking ahead, it’s essential to build meaningful connections that drive your agency forward. There’s no better way to do that than by joining FAIA! No matter where you are in your career, FAIA has various opportunities to get involved, grow professionally, and give back to the insurance industry. We are a member-driven organization, and we attribute our longevity and success to member involvement that affords great perspective, direction, and feedback.

The best way to get the most from your FAIA membership is to get engaged.

If you’re not sure where to start, here are some options to consider: Volunteer on one of our councils or committees • Young Agents Council, Membership & Events Task Force • Legislative & Regulatory Advocacy Council Volunteer and help lead our association

• National Alliance Education Committee (Members on this committee are appointed) — INVEST Task Force — Pay it Forward Committee — Workforce Development Committee — Good Works Fund Committee (Members on this committee are appointed) • Join your local board • Participate in Florida’s Future Insurance Leaders program

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• Pursue a professional designation through FAIA • Catch up on your continuing education credits • Join the Young Agent Council

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• Convention Attend one of our annual events

• Capitol Days • Young Agents Council Sales and Leadership Conference • Summer Leadership Conference

• Professional Liability Coverage Take advantage of our products and services

• Personal Umbrella Policies • Market Access through IMS • Market Access through Big I Markets and Eagle Agency • Preferred products and services

Contribute to a cause

Recruit New Talent

• Contribute to FAIA political actions committees • Contribute to the Good Works Fund

• Florida State University Risk Management and Insurance (RMI) Program • State Colleges • University of South Florida Risk Management & Insurance Program

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GROWING AN INDEPENDENT INSURANCE AGENCY

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GROWING

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AN INDEPENDENT INSURANCE AGENCY

Your agency is off the ground and running smoothly. Now, the name of the game is growth.

This section is all about maximizing the efficiency of your business through sound management practices, innovative technology, and professional development opportunities.

New Technology Solutions

No matter the size of your agency, technology is essential to ensuring that your company runs smoothly, like a well-oiled machine. Effective technology can help your agency grow its geographic reach, streamline workflows, get work done more quickly, get answers from companies more quickly, and increase employee productivity. More automated processes mean fewer errors and less time spent correcting mistakes.

But it’s not just an internal thing. Customers are impressed with agencies that use the latest technologies. Not only is your agency’s image enhanced, but your agency is also positioned to meet your consumer’s increased expectations. In this day and age, customers expect their needs to be handled on a real-time basis and will desire to do business with agents that have the same technological skills they have, if not better.

Overall, staying up to date on the latest technology can increase your profitability, improve your operations, and help you produce better results for your customers. That means staying current with the latest releases of your agency management and operating systems and any other software/hardware your agency uses. You also need to make sure your technology infrastructure is protected, flexible, has remote office capabilities, and can adapt to unexpected events, like a hurricane or pandemic, that could make your office inaccessible.

Once your systems are up and running, focus on ensuring those systems are secure, as new functionality often creates unknown risks. Lastly, prioritize keeping your eye on the ball where technology is concerned. Keeping up is vital if you want your business to continue moving forward.

WE CAN HELP! FAIA members have access to Catalyit, which can help you source technology solutions for your agency. With their community-based platform, you can access in-depth tech assessments, monthly live training and connect with peers, experts, and providers to find the best product for your agency. For more information, click here.

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A good resource for any agency startup is IIABA’s Agents Council For Technology (ACT). There you will find assistance on disaster planning, security and privacy, and the changing nature of risk.

Ready to grow your tech stack? FAIA’s preferred provider, VineIT, offers our members exclusive pricing on managed IT solutions, Voice Over Internet Protocol (VOIP), and texting solutions, as well as consulting and cybersecurity.

Equally important to your tech stack is liability insurance that protects your agency in the event of a cyber-attack or data breach. Like E&O, more and more carriers are now requiring agencies to carry a cyber liability policy as a condition of their appointment.

FAIA’s preferred provider, Evolve, offers industry-leading cyber liability coverage for FAIA members to cover their agency’s cyber liability exposure.

Marketing Your Agency

When you’re growing your agency, developing and executing a marketing plan is essential to make sure you are effectively communicating who you are and why potential customers need your services. Successful agencies have marketing strategies that focus on reaching customers wherever they are, whether through physical means like brochures and print ads or via digital means like social media, video, and email.

WE CAN HELP! FAIA members have access to a collection of professionally produced and consumertested marketing resources from IIABA’s public-facing brand, Trusted Choice. Trusted Choice also has a variety of customizable advertising campaigns available for use that can help you highlight your business locally. Through their portal, you can customize each campaign’s content, which can include print ads, social graphics, and videos, with your agency logo free of charge.

Their comprehensive agency social media guide gives tips on finding and reaching your ideal social media audience, and their informative articles discuss topics like how to step up your digital presence and what website mistakes to avoid. They also offer a monthly content calendar with ready to post content for your agency’s social media channels.

When you use the Trusted Choice brand to enhance your marketing, you can qualify to put money back in your pocket. There are several ways to qualify for a reimbursement available through their Marketing Reimbursement Program.

• You can get up to $750 back for using the Trusted Choice logo on your consumer-facing marketing materials (i.e. store signage, advertisements, business cards, sponsorships, etc.) with the Trusted Choice® logo.

• You can get up to $750 back for using the Trusted Choice logo in your digital marketing (i.e. video ads, website ads, social media, etc.).

• If you create a new website through one of Trusted Choice’s preferred partners, you can qualify for a reimbursement of $500.

• You can receive a reimbursement of $250 when you sign up for an annual Advantage Preferred or Advantage Professional subscription on TrustedChoice.com.

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