Ownership perpetuation is about who holds the agency equity, but staff perpetuation determines whether there is an agency left to own. •
recently vacated role and provide continuity that is so fundamental to human nature. Perhaps your agency has identified and provided the training for a career path that is known to your employees and realistic. A clear career path within the agency may provide the bench strength an agency needs while also providing entry-level opportunities for individuals new to the insurance industry.
THE POTENTIAL IMPACT
So why does continuity and staff perpetuation matter? Beyond client and carrier relationships, leadership abilities, and institutional knowledge, staff perpetuation directly impacts agency valuation. When an agency invests in identifying key roles, cross-training, and well-identified career paths, it invests in its own value.
Flush out comprehensive job descriptions, identify key responsibilities, and determine your approach. Do you want to cross-train your existing staff? Do you want to create an internal career path that provides upward mobility and allows for the backfill of key roles? Do the work you are doing for your clients – identify risk exposures and minimize risk as much as possible.
Ownership perpetuation is about who holds the agency equity, but staff perpetuation determines whether there is an agency left to own. •
Beth Smoller is the COO and General Counsel for KAIA, and previously worked in agency management for over 16 years.
Carey Wallace, Founder of AgencyFocus, has worked with hundreds of agencies on their planning, and shares, " Internal perpetuation only works when the business is bigger than any one person. Clearly defined roles, cross-training, and clearly defined career paths reduce risk, protect continuity, and increase overall confidence that the agency will continue into the future. In a relationship driven, planning for the future of all roles inside the agency is so incredibly critical to positioning the agency for the future."
Staff perpetuation equates to stronger valuation. Staff perpetuation leads to smoother transitions when personnel changes occur. Smoother transitions lead to reduced disruptions for your clients and carriers. Reduced disruptions lead to better retention in your book of business and maybe better retention and recruitment for your agency team.
All of this can be understandably overwhelming. So, I’ ll leave you with practical guidance to get started. Identify 1-2 roles within your agency you could not easily replace and ask yourself who would step in tomorrow if a key person left. Once you have identified 1-2 roles, then start working on a path to minimize the risk in replacing those identified roles.
JANUARY / FEBRUARY 2026
25