Page 26 - COVID-Proof-Your-Agency

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

 Commission losses due to policy cancellations, premium audits, and renewals at lower

premiums due to lower rating basis of clients.

 Profit sharing and contingency income next year is likely to be less due to lower volumes

and lack of growth. This also will reduce growth bonuses or growth kickers in profit

sharing agreements.

 Compressed premiums may lead to higher loss ratios for profit sharing and contingencies.

 Some agencies may face the loss of carrier contracts or have reduced commissions

imposed due to falling volumes or lack of new business.

 Agencies without adaptable and strong new business processes may face difficulty in

replacing lost/reduced income.

 Agencies may experience E&O exposures due to COVID-19 related losses, whether

covered, justified, or not.

As you think about and prepare for your SWOT analysis project, here are a few other

hints for a successful analysis:

 This is not a huge time commitment; you are not writing a book or a business plan.

 We urge agency principals to allow staff to also provide feedback in the SWOT analysis.

 Consider letting some staff members develop a separate SWOT and then come together

to discuss and combine documents.

 Your staff may look at this experience and how you and your business are performing

through a different lens than a manager or a principal. This may provide important

insights to you, the owner.

 When you include staff in identifying problems and solutions, they take ownership in

addressing problems and solutions moving forward.

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