As we travel the country and work with countless insurance professionals, we commonly hear excuses for lack of production. Three of the most common are; time, lack of competitive products (price), and the need for more tools. The ironic thing is that in many cases, there are tools and technology in the agency not being used properly, or at all. I can’t tell you how many times an Executive or Agency Owner asked me how they can get their people to embrace some of the tools they’re investing in. (more…)
The Northern California office of the Leavitt Group has purchased Golf Insurance Services from George Peterson Insurance Agency. Golf Insurance Services, located in Rancho Cordova, Calif., specializes in providing insurance solutions for public and private golf courses, country clubs, planned golf communities and homeowners associations. (more…)
Insurance agents risk facing additional marginalization if they do not evolve and get creative, according to a rather devastating report by McKinsey & Co. on the future of property and casualty insurance agents. The role of the agent in some lines, such as auto, is becoming obsolete, while other lines are similarly approaching commoditization, which means agents can be bypassed, according to the report by McKinsey & Co.’s Insurance Practice. (more…)
A 25-year-old New Yorker earning $25,000 a year will pay as little as $62 a month for health insurance next year, and a peer living in Vermont may pay nothing, according to a 17-state survey of premiums under the U.S. health-care overhaul. The Kaiser Family Foundation report is the broadest look yet at what consumers will pay for health insurance when the Affordable Care Act takes full effect next year. The cost issue has been a top concern for President Barack Obama’s administration, which is trying to persuade at least 7 million Americans who now lack insurance to sign up for coverage starting Oct. 1. (more…)
Confie Seguros has acquired Olympic Insurance in Shelton, Wash., a provider of auto, home and small commercial insurance. Olympic Insurance was founded in 1997 and is a privately owned independent insurance agency serving Washington. Confie first entered Washington in 2010 with the acquisition of the iconic Vern Fonk Insurance. Olympic Insurance is Confie’s the eighth acquisition in the Pacific Northwest and the 17th Vern Fonk location. (more…)
The number of insurance agency mergers and acquisitions declined slightly during the first half of 2013, with 122 reported transactions in the U.S. and Canada compared with 133 deals last year, according to OPTIS Partners, a Chicago-based investment banking and financial consulting firm specializing in insurance. “It was a period of relative calm after the perfect storm of getting deals done before the capital gains tax-hike,” said OPTIS Partner Timothy J. Cunningham. “This year’s numbers are inflated somewhat because many of the deals reported in January and some in February probably closed in 2012.” (more…)
Nearly eight times more US business buyers expect to use seller financing than prospective UK purchasers, according to a BusinessesForSale.com survey of hundreds of buyers, sellers and brokers.
Asked how they expected to fund a purchase, nearly one in three (31%) US-based would-be buyers said they hoped to obtain a loan from the vendor, compared to fewer than one in 20 (4%) of their counterparts across the Atlantic. At 15%, the worldwide average was also much lower. (more…)
Many insurance agency owners believe that since they own a business, they understand the complexities of how to sell an insurance agency. When I hear this, I always ask the question; you’ve owned and lived in your home for 20 years, why do you hire a Realtor? The reality is, selling a business is more complicated than selling a house. When selling a home if a buyer signs an agreement to buy, they’re committed to buying the home unless their 17 day loan contingency falls through. When selling an insurance agency, there is no such commitment and a buyer can walk away the day before closing and you can’t do anything about it. (more…)
The Insurance Journal had a great article about E&O when buying and selling insurance agencies. The article points out that while the industry seemed to see a spike in mergers and acquisitions activity in 2012 due to some tax implications, many are projecting that 2013 will see some healthy buying and selling, too. While there are many issues to address involving staffing, systems, etc., something that does not seem to get the attention it deserves involves the applicable errors and omissions (E&O) issues. You can read the full article here. (more…)
According to a recent study conducted by BizBuySell.com, the Internet’s largest online marketplace for buying and selling businesses, brokers said they are currently seeing an increase in the number of deals being completed, compared to the same time in 2012. Now that the presidential election and worries about the “fiscal cliff” are behind us, buyers and sellers are spending less time waiting for Washington and more time being proactive in the marketplace. Read the full article here.