Build agency value with a quality book of business
Posted: Mon May 16, 2011 9:43 pm
Agencies that sell for a premium do so because of the quality of the book. What does a quality book mean? Here are some characterizes of a quality book:
1. Well rounded accounts with a minimum average of 2 policies per account
2. Policies with high liability limits and even more so, accounts with umbrella policies
3. For personal lines, accounts rounded with at least a homeowners policy, if not an umbrella
4. For commercial lines, professional office risks are at the most stable side, contractors are the least stable, stable classes of business that have a high retention build more value
5. Personal Lines accounts with premiums of at least 2k and up
6. Commercial Lines accounts with premiums of at least 5k and up
7. Agencies that have a scheduled client contact program
8. Agencies that have an updated management system that can pull a number of different reports on their book
1. Well rounded accounts with a minimum average of 2 policies per account
2. Policies with high liability limits and even more so, accounts with umbrella policies
3. For personal lines, accounts rounded with at least a homeowners policy, if not an umbrella
4. For commercial lines, professional office risks are at the most stable side, contractors are the least stable, stable classes of business that have a high retention build more value
5. Personal Lines accounts with premiums of at least 2k and up
6. Commercial Lines accounts with premiums of at least 5k and up
7. Agencies that have a scheduled client contact program
8. Agencies that have an updated management system that can pull a number of different reports on their book
