5 Signs Your Book-of-Business is Valuable

By Kelsey Rosauer on November 3, 2016 in Database Management

5 Signs Your Book-of-Business is Valuable

Selling or Passing on Your Book-of-Business?

Or maybe you’re just wondering if the current state of your book-of-business is valuable. Many insurance agents are thinking the same thing right now because the average age of an insurance agent right now is about 59. That means that ¼ of all insurance agents are expected to be retired by 2018.

So, agency owners are beginning to plan for what’s next. They’re thinking: who will I pass my book-of-business on to? Is it ready to sell or pass along to a family member? How valuable is it?

There are plenty of strategies out there to place a “value” on your book-of-business, but today we’re going to talk about your book-of-business (your data) and how it’s organized.

5 Signs Your Book-of-Business is Valuable

1. You have a great historical retention rate. Your clients are generally loyal to you and continue to buy from you. The average retention rate for insurance agencies is 84%, but the best agencies shoot for a range between 90-95%. If you have a retention rate like these numbers, buyers will definitely be interested in working with your clients. An extremely valuable book-of-business is one where cross-selling opportunities can be easily and quickly identified. Check out our eBook that outlines how to identify and act upon cross-selling opportunities immediately.

2. Your data is extremely organized. Put simply, how quickly can another agent pick it up and begin working with it? For example, if that agent got a call from a client immediately after purchasing your book-of-business, could he or she readily answer any of their questions about their account? When a book-of-business is stored mainly in Excel spreadsheets or paper files, this can be difficult. An agency management system that’s searchable based on keywords (like the client’s name) is incredibly important here. Being able to show a buyer how easy your data is to maneuver and work with is a great selling point.  

3. Your data is “smart.” How much can you “show” about your data? Can you quickly show your most profitable lead sources? Do you have graphs showing your agency’s carrier and product makeup, group vs. individual business, top producers, and top carrier products? These are just a few items potential buyers might be interested in. Being able to pull up your book-of-business and easily navigate through these different graphs shows that you have been proactive about analyzing your data and, in turn, growing your business. AgencyBloc’s Dashboard Analytics allows agencies to look at all of these items and more.

AgencyBloc Dashboard Analytics

AgencyBloc's Dashboard Analytics

4. Your contact records are very thorough. Whether it’s an individual client or a group client, how much information do you have readily available about them? Valuable books-of-business include detailed contact information (phone number, email, address), family information (spouses, children), and a record of all contact made with that client including attached notes and documents.

AgencyBloc CRM Individual Notes & Attachments

AgencyBloc Individual Notes & Attachments Tab

5. You have a client communication plan. Whether the potential buyer plans to use it or not, can you show that you’ve used a consistent client communication plan? Do you have touchpoints identified and emails automated to go out to clients for important events like birthdays and policy renewals? This is something insurance agents ask about a lot: how can I better communicate with clients to increase my retention rate. When is the appropriate time to reach out clients? Having a plan laid out is a major added bonus for anyone looking to purchase your book-of-business.

There is so much more that goes into selling or passing on your insurance agency, but these are a few things to check off on your data to be sure buyers will be interested or your family member who is taking it over will be equipped to begin immediately where you left off.

There are many reasons people sell their insurance agency, so it’s best to prepare now even if you don’t see yourself selling anytime soon. Not to mention, having your data organized in the ways we’ve discussed will only help your business flourish.

Want to Learn More About Agency Management Systems?

AgencyBloc is an agency management system that helps life and health insurance agencies grow their business with an industry-specific CRM, commissions processing, and integrated business and marketing automation. Schedule a live, one-on-one demo to see if it might be the right fit for your agency.

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Kelsey Rosauer
Kelsey Rosauer

Kelsey is the Marketing Brand Specialist at AgencyBloc. She plans and creates educational resources to help our customers organize, automate & grow their insurance agency. Favorite quote: "I am convinced that life is 10% what happens to me and 90% how I react to it." —Charles R. Swindoll  More articles

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