COMPANY PROFILE
Agency Evolution
CEK has grown quite a bit over time . In 1977 there were six employees , and today there are 35 employees . The agency is solely focused on insurance after having a real estate operation for many years , which naturally separated in the late 1990s . As previously mentioned , the ownership structure has expanded , and together , the owners are committed to coming together to put the needs of the organization first above personal needs .
The agency has evolved over time to meet the changing expectations of customers , especially with younger customers focused more on response time than understanding coverage and having a deeper relationship . Interactions with carrier partners have also changed with more staff time devoted to entering customer data into carrier rating systems than interacting with underwriters . The workload for the agency has evolved to be much more labor-intensive without the benefit of additional compensation .
While the marketing of the agency has evolved , they still find that the best long-term customers are the ones that producers identify and cultivate relationships with . Hutchens stated , “ At the end of the day , our marketing efforts can bring customers to us . We appreciate the customers that we have targeted and gotten to know because they are more likely to be long-term , loyal customers focus on value ; versus price .”
Keys to Success
First and foremost , focusing on the people who make CEK run daily has been key to its success . Their importance cannot be understated . The broad-based ownership structure and taking advantage of the well-rounded skills of each individual owner have also been instrumental in running the agency . Everyone has different experiences and expertise , along with an intangible skillset that fits well together . Lastly , Cordova commented , “ creating a more collaborative environment for producers with a big picture understanding that everyone wins when new customers are written and coordinating together increases the ability to secure new business .”
Challenges and Opportunities Facing IA ’ s
Attracting , hiring , training , and retaining talent is a huge challenge , with so many people retiring . The perpetuation of agencies is a tangential issue to finding talent , but many agencies are realizing they need to figure out a plan if they haven ’ t been focused on it . Brennan added , “ Agents aging out and new ones coming in are challenges facing our industry . Owners are looking to perpetuate the agency , and they need talented employees who can think like owners .” CEK ’ s leadership and agents also grapple with the commoditization of insurance , price-driven shoppers , and multiple carrier distribution platforms . Still , they know with it comes the opportunities to differentiate themselves through greater product knowledge and by building personal relationships ..
Advice for New Agencies
Starting a new agency is challenging . The best advice the team at CEK would give to new agencies is to look to those with experience and do your planning and due diligence before committing to start an agency . It is a heavily transactional business that you don ’ t want to get behind early in the process , which makes focusing on agency technology and procedures also important . Access to markets is critical in getting started along with a strong producer . Whether networking with other agencies or hiring experienced personnel , new agencies should look to experienced agency owners for guidance .
What ’ s Next for CEK ?
The ownership team is looking forward to growing the agency . They feel that the future is bright with a great foundation of young producers
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