How Does A Firm Become a
Best Practices Agency?
Jennifer Becker
IIABA’s Best Practices Study has examined top-performing
agencies across the country since 1993. For these agencies,
inclusion in the study translates into the prestigious status
of “Best Practices Agency”—and opens the doors to many
benefits. higher-performing firms are eligible to remain in the three-
year study cycle.
The purpose of the Best Practices research is to compile
operating statistics from the country’s leading agencies
and brokerages, and use them to develop benchmarks
and operational information on growth, profitability,
productivity and financial stability. To keep the data fresh,
IIABA and Reagan Consulting solicit agency nominees
every three years from insurance carriers, IIABA state
affiliates and other industry organizations, then invite the
nominees to participate in the annual study. Last year, more than 1,200 agencies around the country
were nominated in six revenue categories, ranging from
less than $1.25 million in annual revenue to more than $25
million. Of the 400 agencies that chose to submit data, only
254 scored high enough to qualify for inclusion in the study.
In September 2016, the collected data was released in the
2016 Best Practices Study.
In order to participate, these nominated firms must submit
detailed financial and operational information, which
Reagan Consulting then objectively analyzes, scores and
ranks using its proprietary software program.
Not every firm that submits data qualifies as a Best Practices
Agency. Based on historical norms and the total number
of firms participating in each of the study’s revenue
categories, which determine the qualifying point, only the
Madelyn Flannagan explains the process in this short video:
www.kaia.com/bestpractices.
To retain its Best Practices Agency status, an agency must
submit its year-end results for annual review. Every third
year, when IIABA accepts new agency nominations, the
agency must once again qualify as one of the top performers
in its revenue category.
Nominations for the next group of Best Practices agencies
will take place in 2018—which means now is the time to
prepare your agency for success through the Best Practices
program.
Jennifer Becker is the Director of Education Programs at the IIABA.
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KANSAS INSURANCE AGENT & BROKER | May - June 2017 |