According to the Chinese Zodiac calendar, 2019 is the Year of the Pig. However… according to the IIANC calendar, 2019 is the year of data analytics.
When is the last time your agency participated in a meaningful benchmarking study? For most agencies, the answer to this is probably “never”. There are well over 1000 independent agencies in North Carolina. Only a handful of these agencies participate in the IIABA Best Practices Study. In 2018, there were seven “Best Practices” agencies in NC. These are the best of the best, and these agencies are truly shining examples of peak performers with the IA community. You can see a list of them here.
But what about the rest of you? For all of the great work that the Best Practices study has done over the years, there are a couple of challenges in getting it to relate to the average independent insurance agency (and IIANC member):
- The minimum revenue category in the Best Practices Study is for agencies under $1.5 million in revenue. According to IIANC’s data, that constitutes about 85% of our membership. Over 70% of our members operate on $750k of revenue or less. With such a large percentage of agencies concentrated in one category, it shows a great need for further segmentation of the categories.
- Only a few of us can ever be 1%’ers. When I run a 5k, I don’t want to compare my time to the guys at the Olympic trials. If that were the standard by which I was measured, it would be more than a bit discouraging. Instead, I like to look at my age group (and in triathlons, even my weight class!) Where do you stand among your agency peers when taking factors that affect performance (like economic growth in your area, number of years in business, etc.) into consideration? Do you want to know? I truly hope that you do. If you want to grow your agency, don’t you first have to know your agency?
In 2018, the IIANC Board of Directors made the decision to become an equity partner in IntellAgents, LLC. IntellAgents was formed by the Ohio Insurance Agents to help independent agents across the country leverage big data in order to make better business decisions for their agencies. Through partnerships with other state-based independent agents’ associations, IntellAgents will have access to thousands of isolated data points across independent insurance agencies and be able to turn them into business intelligence and actionable insights.
While we are preparing to have the offerings of IntellAgents ready to launch in early Q2 of 2019, we have already built a solid frame work, and are ready to share some basic measurables with you today. Want to know how your revenue per employee stacks up with your peers? How about your turnover rates, or your average commission per policy? These are just a few of the items that we can provide you upon request. You can view an example of an agency snapshot here. Contact Adam Petrey today for more information.
Will 2019 be your year for data (or just the year of the pig)?