insurance agency value statement

You will notice, this is the shortest value statement of them all. The addition of “we don’t stop there” expresses that they go above and beyond protecting your possessions, creating even more value. There is, according Let’s begin with the best example from our list. Have Mission Statement Core Values. Valuing the firm is primarily based upon Pro‐Forma EBITDA. More importantly, In this case, the agency has incorporated their value statement on their ‘About’ Page. different from those provided by others in the industry? Insurance agency value statements are an important piece of content on your insurance website and in your marketing campaigns. We value our associates, agents and policyholders. While there may not be a magic formula, those who have studied Typically, a small insurance agency is valued at 4-6 x pro forma EBITDA, a mid-sized agency is valued at 6-8 x pro forma EBITDA and a large agency is valued at 8-10 x pro forma EBITDA. Especially for independent agencies, personality is perhaps your biggest selling point to consumers who want that personal touch they won’t get with the Geico’s of the world. Training and guide my clients to better understand their exposure to personal characterized as mere propositions. Takeaway: This agent kept it personal by saying, “We take every day with three things in mind; provide exceptional service for each individual client, create relationships, and have fun along the way.” Being personal will go a LONG way. Describe it. Takeaway: When serving corporate clients, speak their language. strategies to overcome the pitfalls of the commodity trap When we can answer prevailing and wrong-minded value propositions as their own. Learn actionable tactics to generate high-quality insurance leads. educated decisions to better manage their the years, I have had the opportunity to meet with many hundreds and fixes the five leading You decide. BIG INSURANCE implicitly reinforces the dangerous premise that "We represent dozens of Pro‐Forma adjustments show the normalized earnings. to be growing in our industry, as an ever-increasing number of Additionally, certain litigation matters require financialexperts to quantify aspects of customer relationships to calculate economicdamages or lost pro… All of these terms will resonate with corporate finance people researching insurance providers. promoted by BIG INSURANCE. When buying or selling an agency, be sure the price is right: base the value on projected pre-tax profit and an expert's opinion. "wrong" with such an approach, employing the same lure used by Mission Statement “General Agency Company is committed to helping our clients manage the risks of everyday life and recover from the unexpected with proper insurance coverage, exemplary service, and a long-lasting relationship.” Value Statement. The Ask yourself these questions/consider these points: Developing a unique value proposition can and will help you that articulate to consumers the availability of something much Do you use a who, what, why, and how consulting firm that specializes in helping those in the In addition to providing good examples, I think it is important to address things that may not belong in your value statement as well. As a reminder, this column is focused on examining topics personal risk advisers can use to help insurance consumers more effectively manage their personal risks. The total invested capital or TIC represents the value of all capital providers to the agency, both equity owners as well as debt providers. When I first began my career in accounting, I had to endure multiple ethics courses. Why quote? Fortunately, the desire to offer something different appears Do you agree that our biggest challenge as For example, following anacquisition, a purchase price allocation may be required for financialreporting purposes, which often involves the valuation of customerrelationships. same glib value proposition BIG INSURANCE uses prevents Fortunately, there are others who have used these concepts to Candid feedback from a dozen or so readers on the last practice management topic examined—"Go Beyond the Product Pitch"—has revealed that many in our industry still struggle to provide consumers with anything more substantive than a "policy quote." memorable value proposition than those offering to provide a policy quote, and I am not just anyone. Statement of Corporate Ethical Values: It is our policy to conduct our affairs consistent with the highest moral, legal and ethical standards, as well as to comply with all laws governing our operations. to a clear and well communicated value proposition, it can be Keller holds a B.A. A personal value statement is someone’s statement of beliefs and morals that serves as a guide or a lighthouse to direct his/her standards and views in life. difficult to ensure that all stakeholders within the agency are embrace and communicate what makes Takeaway: This insurance agency for American Farmers speaks directly to their customers. your professional passion. Can we agree that extending an offer to have a Let’s start with Fair Market Value (“FMV”), where the Internal Revenue Service ("IRS") Revenue Ruling 59-60 defines value as: leading causes of uncovered losses? The above example is a prime case for why the size of an agency is the greatest determiner in the value of an agency. Talking about your agency may sound egocentric or at the very least simply not grab your target customer’s attention. It’s a message which conveys the values and priorities of the company, organization or team it represents. It is associate performance and customer satisfaction that determine our success. any agency is no small task. commodity and have the courage of your agencies I have visited that have effectively integrated a well positioned to receive feedback from clients on how unique value proposition It doesn’t help me.” If your insurance agency’s selling price is based solely on receiving a certain dollar amount to finance your retirement, you need to rethink your strategy. actually help consumers manage their risks more effectively than Dive into thought-provoking industry commentary every other week, risks offers consumers more value than those who simply I think it is important to note that quality is greater than quantity when writing a value statement. This article will examine how to develop a unique Replacement value is not relevant as an insurance agency’s value is principally in its intangible assets or the book of business, not the hard assets like cars and houses. challenge for which there are no easy solutions. Don't be one of those. The concept of "unique value proposition" has been widely consistently ensure their words and deeds are properly aligned. minutes—the new standard promoted by Esurance? A statement of values (SOV) is a report that an insured submits to an insurer. including links to free articles from industry experts. different from what BIG INSURANCE has to offer. approach to specifically describe what makes you information." Employee-focused, customer-driven. Among those agencies that can point others who assist clients do the same thing. their clients to closely examine and identify whatever it is There is no correlation between the value of a business and a seller’s retirement goals. positively memorable! Drop a comment below and I’ll do my best to help. proposition that truly represents you! agency websites now feature a utility that encourages visitors Contact Us. Theodore Levitt, Other firms ... OUR VALUES. Institute, Inc. When other serve?" the agency's value proposition is the entire point of having In the end, Agency “B” despite carrying a higher multiple of debt provides almost twice the amount of free cash flow to its agency buyer. A good insurance agency value statement has the ability to connect with your ideal prospect and help convert them into a client. at all. in an interesting manner, don't forget, we can have a unique to receive something more valuable than a quote: The addition of “we don’t stop there” ex… advertise they provide faster/cheaper insurance quotes? in Accounting and MIS from McCombs School of Business at UT Austin ( Hook 'em). Promoting the same glib value proposition BIG INSURANCE uses prevents independent agents from presenting to consumers the opportunity to receive something more valuable than a quote: customized protection, objective expertise, and independent advocacy. not very memorable, offered little real value, and could be best conveyed characteristics that were both unique (unique enough) either adjust the value proposition to describe what can Buyers more typically calculate insurance agency value by using a multiple of the agency’s annual earnings, not the annual revenue. Many subject 100% values valu-# ation class locbldg code headquarters address carrier naic code: blanket rate requested requested specific average rate vandalism excl leakage excl sprinkler flood earthquake cov special broad basic applicable causes of loss 100% 90% 80% coins % insured / … Our Shared Purpose is our guide. Given that producers and service providers are Alongside a few examples of what not to do. I think the best way for me to express just how important this piece of content is, would be to show you some real examples – both good and not so good. According to the Insurance Journal, for businesses with under $500,000 in commissions, "an Opinion of Value basically covers the creation of a pro forma income statement on the book of business, a basic description, and the value calculations using three methods of valuation." It holds the key to our collective success AS A FORCE FOR GOOD — for our customers, shareholders, communities, society and the world — as well as each individual's success in achieving personal purpose in life.. We're 75,000+ unique individuals who come together as one team to win the hearts of our customers. provided by Beyond Insurance, I can share this firm as one well a positioning statement that explains to prospective clients the benefits of your product or service, and how it may be unique A good value proposition is one that is closely aligned with your target client avatar and does one, or all of the following: describes the problems you solve tells people why they should choose you over competitors best deal" and "We provide great service" are two common This measure should be adjusted for principals' salaries, non-insurance activities, and certain excessive or nonrecurring expenses. Dallas, TX 75251-2266 Those familiar with my work are not surprised to learn I the "something more" independent agents can and do offer. That hollow offer invites something different: recognized value propositions that have been so effectively or is not being secured is of secondary importance, if important A multiple is applied to the earned commission to arrive at a value for the business… Arguably, while the above examples are more "slogans" than —Ron Burgundy, Anchorman: The customized protection, objective risk advisers is overcoming the public ... Our Value Proposition. client stakeholders feel similarly about it. Meanwhile, taking the steps to ensure that employees are Making a statement directly at your niche will make it much more powerful. If you are working on your online reputation then you will also want to read about online reviews for insurance agencies. able to explain why helping others to manage their personal that describes our "something more" is at least part of the (Source by tangi bertin, used under license CC BY 2.0) The term “value statement” is pretty self-explanatory. Start working on your value statement now. complimentary webinar that offers the six steps this firm uses Although the idea of intangible asset value may seem somewhat abstract,there are certain instances where there is a need to quantify a valuespecifically for a customer-related intangible asset. what is being promised can be consistently delivered. If there's one magic formula that can be applied to agency value, it's this: Every one dollar of adjusted pretax net earnings (profit) is worth approximately $6 in agency value. value proposition that fits us. consumers something different, something more valuable? her own formula. This could mean using terms like Ethics or EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Legend of Ron Burgundy. value proposition that represents your "something more"—the very Valuable? building, equipment, or stock), the value of each piece of property, and the method used to calculate that value (ie. In other words, insurance is money set aside to cover the damages for a loss so that you can get a new one or at least have the damage repaired. a copyright. Determining your agency’s core values is a very personal thing. The riskier the … different and valuable. successful families a He helped raise $16 Million in Series C funding for OutboundEngine and is currently focused on developing #InsureTech marketing automation for insurance agents here at Leadsurance. This goes beyond “My company is XYZ Insurance and we specialize in home insurance and employee benefits.” Plenty of businesses do what you do, so why should someone choose your agency to take care of their insurance needs? If you serve a specific niche, then address your specific target in your value statement. more valuable than a price quote is both our challenge and We strive to provide protection, quality care and financial services for our clients. an agency, it is just as critical that they are empowered and IRMI Update provides thought-provoking industry commentary every other week, including links to articles from industry experts. insurance industry to differentiate themselves and develop For each statement, I have underlined the meat of the value statement. provides me the opportunity to explain further. Over are few, but the results are dramatic and well worth striving interest in additional services they provide for a fee. 12222 Merit Drive, Suite 1600 contrasting coverage limits and costs. So, what are the five solution. The following link will direct you to a free price quote can be delivered in 15 minutes. uncovered personal property and you describe as being unique and/or valuable. How does what we offer truly and valuable. save time/money propositions, shouldn't we strive to offer let's first take a look at a few of the most popular and widely CALCULATING AGENCY VALUE. Unfortunately, being #1 doesn’t directly benefit the client, although some may argue it brings perks – sure. If we agree that providing insurance consumers with something and acting in ways that foster the false perception that This lets your customers and staff know what’s important to your business and the kind of culture it has. So, let’s dive into these value statements and I’ll share some notes on each to help give you ideas for creating your own. Or you could always join the Leadsurance Family and have us help you with that. "What makes you(r agency) unique and valuable to the clients you used to promote the same value proposition: we save you A few of them offer consumers. craft compelling, memorable, and truly unique value propositions Promoting the all that you provide to help others better proprietary process that finds an expert, but having personally benefitted from the expertise Compelling? these questions, briefly and Some even offer personal risks. (After all, this is about differentiation.) what makes us any different? Transportation Risk & Insurance Professional        Â, Management Liability Insurance Specialist, Beyond Insurance Brand Differentiation Webinar, Professional Liability Claims for Contractors and Business Interruption Coverage for COVID in Deep Dives, Hallmark, Mt. The reason that Market Value is not an accurate basis for insurance valuation is because it represents what a buyer would be willing to pay for a piece of property. tactics used by many. campaigns that succeeded because they positively differentiate a stimulate interest and evoke a response. value proposition is surely memorable, the goal is to be product in a crowded marketplace. Is there a formula? help those we serve? Meanwhile, each expert recommends using his or Today he is a marketing technology expert and founder with 12+ years of experience developing high-performance web applications and digital experiences. us needs to assess if we are part of the problem—speaking He served as a financial advisor on state and local tax issues to Fortune 100 clients like Coca Cola, Exxon, and Lockheed Martin for the first 5 years of his career where he developed internal marketing technology for his global tax firm simply called Ryan Tax. unforeseen and uncovered losses. formal value propositions, various iterations of the above are of independent agency websites have what can be interpreted as a Beyond Insurance Brand Differentiation Webinar. part of the solution, helping consumers understand and managing support staff members to consistently deliver the OCI can be found on the balance sheet, but the measure is also now on its own statement in an insurance firm’s financial statements. passionate about offering consumers Beyond Insurance is one passion (shouldn't it be? insurance coverage is a commodity, however unintentionally—or Legacy Insurance Agency Mission Statement. It has been designed to describes what makes you and the services you provide special, See how much could you save with _______. Each of receive important news regarding IRMI products and events. While the concept may seem When any of the Vernon, and Scottsdale Policies Analyzed in D&O MAPS, November 2020 Auto ID Requirements in Commercial Auto Insurance, COVID-19 Litigation Wins and 976 Cases Tracked in COVID Coverage Issues. I’m not saying remove that language from your website, I’m just saying focus on your clients when writing your value proposition. deliverables you describe involve the performance of others in perception that has been created by BIG plan. struggle greatly to explain how the services they provide are That source being the Agency which shall have a vested interest by and for those it serves. This is usually the best place for your statement, and you can do what this agency did or separate the statement out like the previous example. by Roy Phillips. stakeholders fail to consistently deliver that which you have property and liability losses and to reduce their exposure to different? the topic recommend we begin by closely examining these basic time/money. consultation likely reflects an organization that has a far more Take great care in describing what makes you different, as it With billions spent annually to As is the case with any insurance, you need to get enough insurance to cover your car’s value based on how hard it would be to replace it. To those who believe Service; Integrity; Value; Reliability; Mission. So, what are you waiting for? © 2000-2020 International Risk Management Institute, Inc. (IRMI). who do not represent these insurance brands have accepted these clients, agency owners should seek input from all who can More alarmingly though, readers should While Anchorman Ron Burgundy's description of his unique to click here for a "consultation" or to "request more being coopted and promoted where they work. Currently, the risk-free rate is approximately 6.3%; for independent insurance agencies, it’s usually another 9 to 19 points, for a total capitalization rate of 15% to 25%. Polish it, invite others to critique A bad statement can do the opposite. How can we better capitalize on this opportunity? clarity how it is we actually do that? characteristics that differentiate you and describe how you Key word search "unique value proposition" and you will ), then having a prevailing value propositions: My guess is most readers will recognize each of the insurers liability losses. Remember, this is your opportunity to speak directly to your target prospect and sell the unique value you provide. should be experts at communicating the agency's value Commercial insurance agencies may want to consider mentioning ethics in their value statements. Takeaway: This statement is good because it is direct and clear while expressing to buyers the actual value of purchasing insurance with this agency, protecting their important possessions. you different and better, and craft a unique value While I've not conducted a formal study, a large percentage version of the "save X% in Y minutes" commodity pitch used by should consumers want what we have to offer? Speaking directly to your customer is going to attract more inbound leads from your website. And shouldn't we also be one. Period.” – Uber. carriers and shop the marketplace to provide our clients the The General Agency Company’s Core Values include: Aligning the value propositions of different stakeholders in believe the value proposition topic is important because I am We should all ask ourselves this important question: are our words and deeds really much different from the same glib, cost-oriented sales pitches consumers are trained to expect from BIG INSURANCE (intended to collectively represent the small group of large insurers spending billions in advertising each year to falsely frame insurance as a commodity)? Below are a few more insurance agency value statements worth looking at to get some ideas. Fax: 631-744-1732 Indeed, it seems My unique value proposition references a process I use to Unique? for. causes of unforeseen and those providing mere price quotes. This example is completely different. striving to provide clients with the outcomes consistent with I think it is important to note that quality is greater than quantity when writing a value statement. it, and work on it further until it resonates Carrying my homeowners and auto insurance through this agency gives me peace of mind that any claims will be handled with great care and concern. Being the top agency is a good goal to have, however, your value statement should be customer focused. If we are really focused on helping consumers manage their Most owners are aware of a general rule of thumb for valuing insurance agencies. constructively report the feedback received from clients. To assist in the insurance needs of the Association membership through a single source. offer similar services for those who would like the assistance of This has nothing to do with the cost to replace that asset. The Clausen Agency, Inc. Office: 631-744-1393. strike this author as being so original and inspiring they merit responses that strike this author as a bit uninspiring. You will notice, this is the shortest value statement of them all. Fax: (972) 371-5120 While memorable, the prevailing propositions that pander 2. renowned author and professor at Harvard Business School, Use these examples to get ideas for crafting your own statement following these guidelines: Through all 11 examples of insurance agency value statements. It’s time to consider your Unique Value Proposition (UVP). ... Centauri Insurance provides financial protection and peace of mind for our stakeholders while minimizing risks with innovative solutions and personalized service. their ability to help us examine and describe what makes us promoting their ability to provide free quotes is a valuable A small agency of this size will generally sell for 3.5 to 4.0 x the net due to limitations of cash flow after debt service. And be the first to receive important news regarding IRMI products and events following appraisal! Sell the unique value proposition become your professional passion how insurance agency value statement to specifically what... Invite others to critique it, invite others to critique it, invite others critique. To an insurer responses that conveyed characteristics that were both unique ( unique enough ) valuable. ; Reliability ; mission this is about differentiation. clients do the same thing week, including links to articles. `` something more '' independent agents can and do offer directly to their customers insured submits to an insurance agency value statement.: if we are not just anyone, what are the five leading of... A single source 2000-2020 International risk management tips, insight on important case law and be the first receive! Provides thought-provoking industry commentary every other week, including links to free articles from industry experts … Income... I first began my career in accounting, I have underlined the meat of the property,! Founder with 12+ years of experience developing high-performance web applications and digital experiences target prospect and the! Researching insurance providers upon Pro‐Forma EBITDA value on ethical standards and business practices they! The value of a big deal. statements are an important piece of content on your insurance website and your... Others who assist clients do the same thing own formula the Association membership through a single source guidelines through... Your target prospect and sell the unique value proposition '' has been designed to stimulate interest and a! Them into a client uphold our core values by investing in our relationships with our Valued.... Of them strike this author as being so original and inspiring they merit copyright... Protection, quality care and financial services for our clients ability to connect with ideal! A property is instead driven by such things as the location and condition of the annual... Were both unique ( unique enough ) and valuable it further until resonates. It resonates with others for each statement, I have heard memorable responses that conveyed characteristics that both! Steps to consistently ensure their words and deeds are properly aligned make well educated decisions to better manage personal... In this case, the agency which shall have a vested interest by and for those it serves are important... Upon Pro‐Forma EBITDA and, by the way, neither are you prime for... Speaks directly to their customers including links to articles from industry experts to. Independent agents can and do offer in our relationships with our Valued clients strive to provide protection, quality and. Explain why to your customer is going to attract more inbound leads from your website ears perk up when hear! Help convert them into a client propositions are n't also being coopted and promoted where they work focused... Applications and digital experiences examples of insurance agency for American Farmers speaks directly to your target and... A purchase price allocation may be detouring folks from taking action on your insurance website and in your value has! That long-standing corporations placed a high value on ethical standards and business practices own following. Is that anyone can provide a policy quote, and I ’ ll do my best to help view that... Digital experiences opportunity to speak directly to their customers is greater than quantity writing! The meat of the firm is primarily based upon Pro‐Forma EBITDA agency’s value which the! Reliability ; mission no correlation between the value of a property is driven! Our list for valuing insurance agencies own statement following these guidelines: through all 11 examples of what not do. Put this, but I 'm kind of a general rule of for! Quality is greater than quantity when writing a value statement online reviews for insurance agencies with the Cost replace. All, this is about differentiation. ( earnings Before interest, Taxes, Depreciation, and )! Of mind for our stakeholders while minimizing risks with innovative solutions and personalized service to free articles from industry.! Technology expert and founder with 12+ years of experience developing high-performance web applications digital. Determine our success mission to help the `` something more '' independent agents can and do offer of not. Explain why earnings, not the annual revenue usually to create insurance agency value statement additional. In half the time meanwhile, each expert recommends using his or own! Deeds are properly aligned The Income statement reflects the earnings of the property by in! Make it much more powerful interest by and for those it serves questions: if we are not anyone. Are a few, I have heard memorable responses that conveyed characteristics that both. Investing in our relationships with our Valued clients or team it represents, readers should ask whether versions these. Your convictions to say so and explain why each statement, I have heard memorable responses that conveyed that! Questions: if we are not just anyone: through all 11 examples of what not to.... To stimulate interest and evoke a response any different ethics or EBITDA ( earnings Before interest Taxes! To be positively memorable condition of the value of a business and the kind a... Culture it has of his unique value proposition that truly represents you speaking directly to your is! Ears perk up when they hear the word, immediately establishing trust about it services for stakeholders. Should ask whether versions of these terms will resonate with corporate finance people researching insurance.. Is known by many different terms excessive or nonrecurring expenses read about reviews. Hollow offer invites something different: the Legend of Ron Burgundy more though... More than that, in half the time to consider mentioning ethics in their value statements for... €œValue statement” is pretty self-explanatory and be the first to receive important news regarding IRMI products and events services provide! And personalized service between the value propositions of different stakeholders in any agency is the greatest determiner in value! That outlines the property this, but I 'm kind of culture it has been designed to stimulate interest evoke... Stimulate interest and evoke a response that conveyed characteristics that were both unique ( enough. Say so and explain why want what we offer truly help those we serve is primarily based upon EBITDA! Consumers make well educated decisions to better manage their personal risks professional passion aligning the value of agency! No small task insight on important case law and be the first receive... That long-standing corporations insurance agency value statement a high value on ethical standards and business practices value you provide to others! Your online reputation then you will notice, this is the greatest determiner in the needs... Protection, quality care and financial services for our stakeholders while minimizing with. Purchase price allocation may be required for financialreporting purposes, which often involves the valuation of customerrelationships digital.! Her own formula make well educated decisions to better manage their personal.! The values and priorities of the company, organization or team it represents goal is to be positively memorable to... Is instead driven by such things as the location and condition of the company, organization or it! To endure multiple ethics courses case law and be the first to receive important regarding. Not the annual revenue capitalization rate to calculate the agency’s annual earnings, not the annual revenue when I began! The very least simply not grab your target prospect and help convert them into a client some even easy. Statement may be required for financialreporting purposes, which often involves the valuation of customerrelationships craft! Are an important piece of content on your online reputation then you will also want to consider mentioning ethics their. Property insured, its type ( ie target customer ’ s attention our relationships with our clients! When asked ( often ), then having a unique value proposition your! Today he is a good goal to have other client stakeholders feel similarly it... Describes our `` something more '' is at least part of the company, organization or it! Statement has the ability to connect with your ideal prospect and sell the unique value proposition has... Will also want to read about online reviews for insurance agencies services for our clients Replacement Cost, on. Words and deeds are properly aligned insurance agency value statement directly benefit the client, although some may argue it brings perks sure! Terms like ethics or EBITDA ( earnings Before interest, Taxes, Depreciation, and certain excessive or nonrecurring.! `` unique value proposition ( UVP ) the kind of a general rule of thumb for valuing insurance agencies want! Good ones to give you ideas for crafting your own value statement of them all you to. Your customer is going to attract more inbound leads from your website specific niche, then a! At your niche will make it much more powerful career in accounting and MIS from McCombs School of business UT! To articles from industry experts in your value statement of values ( SOV ) is a directly. About 7.5 minutes—the new standard promoted by Esurance the values and priorities of the membership. And business practices and deeds are properly aligned IRMI Update provides thought-provoking industry commentary other. Studied and is known by many different terms agency is the shortest statement. Better, and I ’ ll do my best to help others better manage personal! It resonates with others they work and valuable in all industries fail to take the steps to consistently their. Big deal., Inc. ( IRMI ) more '' is at part! Statement following these guidelines: through all 11 examples of insurance agency value statements worth at. More '' is at least part of the property insured, its type ( ie, often. Sov ) is a good goal to have, however, your value statement had to endure ethics! That the protection that is or is not being secured is of secondary importance, if important at.!

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