New research commissioned by
Eighty percent of independent insurance agency owners and leaders say that mergers and acquisitions (M&A) mark a success for the agency, according to a recent survey conducted by The Harris Poll on behalf of
The 2022 Independent Insurance Agency Owners Survey also found that there is some appetite to sell their own agency to another strategic broker or private equity-backed investor, with more than half (56 percent) of agencies reporting that they are somewhat or very interested in selling today. However, more than half (56 percent) of leaders say one of the biggest benefits of independence is the ability to make their own business decisions.
“These research results reveal a reluctance to sell.” no a result of the industry’s negative perception of M&A. Rather, it probably has to do with the perceived loss of control when an owner sells their agency,” said
When it comes to competing with national brokers, more than half of independent agencies (52 percent) report that they often or always win the business—citing their close personal relationships with clients (63 percent) as the top driver for winning business, followed by more high level of engagement with their customers (46 percent).
“Independent local agencies have levels of knowledge about the community and the inherent risks facing local businesses that larger insurance brokers cannot replicate,” said
Additional findings from the study include:
- Strategic partnerships are among the top elements (37 percent) that agencies believe will help them grow and compete in today’s marketplace.
The the biggest challenges face agencies include attracting or retaining talent (40 percent), price competition (26 percent), the amount of money they can spend on marketing/advertising (23 percent) and cyber security, data privacy and reducing digital risk (21 percent).
Agencies are interested in consulting support for marketing and communications (71 percent), strategic planning (64 percent) and organic growth strategy (63 percent). Large agencies ($500k+) are more likely to be interested in support for product innovation (65 percent), sales training (64 percent) and data analysis (61 percent) compared to smaller agencies.
Download the full study at: https://keystoneagencypartners.com/news/2022OwnersStudy.
Research Method: This study was conducted online within the
About the Harris Poll
Harris Poll is a global consulting and market research firm that seeks to uncover the authentic values of today’s society to inspire leaders to create a better tomorrow. He works with clients in three main areas: building a twenty-first century corporate reputation, developing a brand strategy, and tracking performance and earning organic media through public relations research. One of the longest-running studies in
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