Why you need our book of business team on your side

Our culture of caring, connection, education, and loyalty bound together with our expertise on systems, processes, industry education, and business strategy brings our agents a level of support they can rely on — from the day they pass their insurance exam, to the day they retire. 

Considerations of Valuing Your Book of Business 

    • The agent’s specific carrier contracts and renewal rates on all policies written
    • What carrier each policy is written through. Carriers vary in retention rates, so stable carriers tend to appraise at a higher value.
    • The product types of the policies.
    • The age of each policy, primarily in relation to the years of remaining renewals.
    • The age of the policy holders.
    • The geographic location of the policyholders, as specific state laws and regulations may impact volatility of the renewal, like anniversary laws or birthday rules.

From building your business right to helping you transition to the next stage, we’re your agency solution from start to finish.

  • Medicare Agents who need help with systems and processes to adhere to the new CMS regulations, call recordings, etc.
  • Agents who need assistance organizing and maintaining their block of Medicare business.
  • Agents who have decided that the MA, PDP, or Medicare market isn’t for them and want to exit the product line without hurting their clients or losing renewals.
  • Agents who want to build a bigger Medicare client base.
  • Agents who want to find a better enrollment solution.

Preparing for the Sale of Your Business

  1. Look at your business structure. If you are not incorporated, you need to become incorporated if possible. You can then move your contracts under the corporation, which will ease the transition of the contract to the buyer. 
  2. Prepare your client data. Verify that it is complete and up to date.
  3. Clear any outstanding compliance issues or debit balances. It is important to note that advancing is considered a debt, so move contracts to an as-earned status.
  4. Do a thorough and honest self-examination as if you were the buyer versus the seller.
  5. Make certain you are mentally prepared for transitioning out of your agency.

The discovery call is designed to get an overall view of an agent’s business. An agent should be prepared to tell their story. In addition to a high-level look, the following details will be discussed. 

    • Marketing and communication systems with prospective and current clients 
    • The current model of servicing existing clients and customers
    • Data management and client information
    • General office procedures 
    • Corporate structure 
    • Contracts with carriers
    • Geographic market area 
    • The mix of business by product line/carrier
    • Physical assets of the agent/agency – office building? home based?
    • Staff and sub-agents – including job duties and compensation structure 
    • Goal of the transaction – Why is the agent considering selling their business?
    • What are the agents plans in the insurance industry after the transition?

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A look Into Acquisitions from An Agents Perspective 

Key Points to Remember During the Process of a Sale 

Take a more detailed look into how to prepare your business, and yourself, for the next phase of your journey.

Carrier Contracts –

Do Them Correctly, From the Start

Contracts that have an individual versus a corporation as a principal can complicate and financial transaction and leave a book of business at risk.

Also, some agencies use sub-agents as the principal on some carrier contracts. This practice is dangerous. It can place the ownership of those policies solely in the hands of the sub-agent and not the agency owner. 

Agency owners should also be aware that if an agent has assigned their commissions to the agency, then the agent can also un-assign them as well because they own those commissions, not the agency owner. 

Managing and Maintaining Client Data

It is extremely common to find that client data is incomplete and inaccurate. Verifying and putting the data in digital format will significantly expedite and transaction. It is impossible to attain the full value of a client during a sale if information about that client is incomplete or disorganized.

Have Realistic Expectations of Value 

As agents, we are very connected to our relationship with our clients. A buyer has not had that same history with your clients, so they will be looking closely at the numbers. They will look at the type of policy, age of policy, the age of the policyholder, etc. Be mentally ready for the buyer to be less emotionally involved than you are.

Schedule your confidential discovery call today to find out more about how to ensure your hard work, sweat, blood, and tears can become a lasting legacy.


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