Page 24 - COVID-Proof-Your-Agency

Chapter 3 – Tried and True Best Practices | Blew, Caldwell, Masiello

Here are some suggestions to get you started in the development of your SWOT analysis:

Strengths:

 Agencies that have focused on some digitization of their business over the last several

years have more easily transitioned to a virtual or remote operation.

 Agency income is relatively stable based on the numerous sources of income from large

numbers of clients and policies.

 Agencies with solid retention practices and a good renewal base will have a more

predictable and stable revenue stream through the crisis and beyond.

 Insurance is a non-optional product. As we have learned in past financial crises, while

insurance is not completely recession proof, mortgage companies require homeowner’s

insurance and states and lenders require auto insurance. States require workers

compensation and lenders require property and liability insurance.

 If you're an agency that writes both personal lines and commercial lines, it is likely that

personal lines will be less impacted by the premium reductions that are going to occur in

the coming months. Use this to your advantage.

Weaknesses:

 Agencies that do not have good systems or processes and have not digitized some aspects

of their business will struggle moving to and operating in a remote/virtual environment.

 Agencies that are not utilizing service centers or enrolling their clients in self-service

capabilities may have difficulty serving clients in some situations as they move virtual.

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