Why Most Insurance Agencies Are Stuck

I asked an agency owner a few years ago about their goals. How did they envision their agency in next 5 years? What I heard shocked me, yet as I talk with more and more insurance leaders, I hear it all too often.

He said, “It today’s competitive climate, we really just want to maintain the status quo. We would like to grow, but if we can just keep what we have now, that would be great.”

Really….status quo? While I understood what he was trying to tell me, I knew the truth.

This has never been more true than in today’s insurance landscape. Independent agencies in particular, are either gobbling up other agencies or they are the ones being eaten.

While that may seem harsh, it’s true.

Why are so many insurance agencies stuck or paralyzed in fear?

I believe there are a number of reasons, but two main reasons come to the surface.

  1. Complacency
  2. They haven’t developed leaders

The first reason, complacency, is often the result of simply thinking that the things that got you here will be the same things that will keep you here. If you think that’s true, go ask someone who used to work at Kodak, Blackberry, or any taxi company.

When you lose innovation and take things for granted, you become complacent. Complacency gets you stuck. Complacency puts you out of business.

The second reason is often a result of complacency. For years, many insurance agencies have built their business model with one or two leaders and multiple followers. This model may work for a while, but what happens with the leader wants to retire, gets sick, or simply gets bored?

They are stuck.

  • Stuck trying to find people
  • Stuck trying to keep people
  • Stuck trying to even want more people

Here is the bottom line: You must learn to develop your people.

This is also the major problem: People are challenging. Developing people is hard work. You must put the work into growing your people up front to avoid the pain of losing them (and your clients) on the back-end.

How are you at developing your people? Are you willing to work at developing your people?

As my mentor and leadership expert John Maxwell teaches in the Law of the Lid. “Your effectiveness will never surpass your leadership ability.”  If your leadership skills are a 4 out of 10, your agency will never rise above a 4.

Leadership ability is a skill you can learn and develop. It’s never too late.

So let me ask you, “Are you willing to put the work in?” “Are you ready to learn what true leadership is really about? ”

There is no status quo.

Everything rises and falls on leadership. Everything.

The insurance industry needs strong leadership. Those willing to grow themselves and develop their team so that they can grow their business.

If you are ready to take the first step in developing your team and getting “unstuck,” contact me about my R.E.A.L Agency Success Catalyst Workshop. It’s a brand new day for your agency……you just have to start.

Please note: I reserve the right to delete comments that are offensive or off-topic.