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Like 2020, last year was difficult for the independent agents of the PIA. Difficult but not impossible. Tough but as this year’s survey shows, we — the independent agents of the PIA — are up to the task.
PIA National Executive Vice President and CEO Mike Becker also wrote an editorial about the survey. It is interesting reading. Here is a link: https://bit.ly/34rWh9B
These are challenges the survey says the independent agents of the PIA took on in 2021:
- Coverage disputes from the pandemic
- Switching from office to a mostly remote workforce
- More catastrophes for our clients
- Helping them through those crises
- Finding skilled help
- More government interference and scrutiny
- Preparing our agencies for the future
The survey pointed out that we are — as always — relying on relationships, excellent service and our expertise in coverage to separate us from the competition.
Agents and agencies responding to the survey noted the importance of continuing education. It is considered “indispensable.”
- 53.3% require their employees to earn designations
- That same number encourage employees to get continuing education
- Many provide the compensation for classes
The survey also found — though challenges abound and are growing — the independent agents of the PIA are optimistic about the future.
Here is more information from the survey:
Gender of respondents
Male — 68.9%
Female — 29.7%
Prefer not to say — 1.4%
Age
Under 30 — 2.5%
30 to 39 — 6.5%
40 to 49 — 28%
60 to 64 — 18.5%
65 and older — 32%
How many years have you worked in the P&C industry
Less than 5 years — 5%
5 to 10 years — 7%
11 to 15 years — 7.5%
16 to 20 years — 9%
More than 20 years — 79%
Your agency is a:
S corporation — 37%
Limited liability company — 25%
C corporation – 22%
Limited liability partnership — 3%
Other — 4%
Function at the agency
Owner/principal — 62%
Producer — 14%
Employee/agent — 7%
Customer service — 4%
Marketing — 3.9%
Other — 8%
The agency is primarily a:
Retail agency — 78%
Retail broker/firm —- 12%
Specialty wholesale agency/broker-firm — 5%
Other — 8%
Finances and strategy
What percentage of property & casualty insurance does your agency write by sector:
Personal lines — 51%
Commercial lines — 49%
What percentage of property & casualty insurance does your agency write by market:
Standard markets — 77.2%
Excess & surplus & specialty markets — 17.6%
Residual markets — 2.4%
Other markets — 2.8%
How do you see y8our agency’s customer focus evolving over the next 5 years:
Expanding to cover a broader customer base — 44.3%
No change — 30.8%
Focusing more on a niche — 21.7%
Other — 3.3%
Over the last 12 months how has your agency’s overall insurance production changed or gross earnings change:
Production increased by 10% — 21%
Gross income increased by 10% — 22%
Production increased by 6% — 24%
Gross income increased by 6% — 21%
Production increased by 1% to 5% — 22%
Gross income increased by 1% to 5% — 25%
Production stayed about the same — 18%
Gross income stayed about the same — 17%
Production decreased by 1% to 5% — 9%
Gross income increased by 10% — 10%
Production decreased by 6% to 10% — 6%
Gross income decreased by 6% to 10% — 3.9%
Production decreased more than 10% — 3.5%
Gross income decreased more than 10% — 3.9%
How does your agency differentiate itself from direct competition:
Relationships — 82%
Service— 81%
Expertise — 69.9%
Advice — 59.9%
Coverage — 44%
Choice — 30.1%
Rates — 23%
Location — 22%
Other — 6%
Source: PropertyCasualty360.com — https://bit.ly/3HBiOPz
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