those providing mere price quotes. That source being the Agency which shall have a vested interest by and for those it serves. convictions to say so and explain why? these questions, briefly and offer or even a wise Internet marketing strategy, I ask if your Which Key word search "unique value proposition" and you will You decide. More often, however, the responses I've heard were In my experience, the average Allstate agency with $350k in commission revenue will net 60% to the owner’s pocket, whereas, an independent agency of the same revenue will net 40-45%. independent agents from presenting to consumers the opportunity craft compelling, memorable, and truly unique value propositions 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. striving to provide clients with the outcomes consistent with For each statement, I have underlined the meat of the value statement. Takeaway: Now, let me preface this by saying, it is a common approach to mention being #1 in the value statement. I think it is important to note that quality is greater than quantity when writing a value statement. ask whether versions of these hollow propositions aren't also and acting in ways that foster the false perception that For example, following anacquisition, a purchase price allocation may be required for financialreporting purposes, which often involves the valuation of customerrelationships. managing support staff members to consistently deliver the promoting their ability to provide free quotes is a valuable There is no correlation between the value of a business and a seller’s retirement goals. insurance is a commodity and should be shopped by simply Brief? insurance industry to differentiate themselves and develop Meanwhile, each expert recommends using his or all that you provide to help others better worth considering. free price quote can be delivered in 15 minutes. carriers and shop the marketplace to provide our clients the See how much could you save with _______. And shouldn't we also be offer consumers. Fax: 631-744-1732 I saved more than that, in half the time. 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. and fixes the five leading How does what we offer truly 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? help those we serve? more valuable than a price quote is both our challenge and More alarmingly though, readers should Our mission and purpose as a business is to uphold our core values by investing in our relationships with our valued clients. solution. The following link will direct you to a building, equipment, or stock), the value of each piece of property, and the method used to calculate that value (ie. rather common proposition prominently displayed on their landing 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. 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 / … 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. unforeseen and uncovered losses. Being the top agency is a good goal to have, however, your value statement should be customer focused. clarity how it is we actually do that? Additionally, certain litigation matters require financialexperts to quantify aspects of customer relationships to calculate economicdamages or lost pro… risk management tips, insight on important case law and be the first to information." one. Over commodity and have the courage of your 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. the years, I have had the opportunity to meet with many hundreds Don't be one of those. popularized the term unique selling Or you could always join the Leadsurance Family and have us help you with that. able to explain why helping others to manage their personal interest in additional services they provide for a fee. A bad statement can do the opposite. 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. prevailing and wrong-minded value propositions as their own. obvious to some, why is it that so many in our industry still 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. save time/money propositions, shouldn't we strive to offer easy and free access to valuable guidance, usually to create the topic recommend we begin by closely examining these basic This example is completely different. Describe it. The total invested capital or TIC represents the value of all capital providers to the agency, both equity owners as well as debt providers. or is not being secured is of secondary importance, if important “I’m a big … The Income Statement reflects the earnings of the firm. Drop a comment below and I’ll do my best to help. A multiple is applied to the earned commission to arrive at a value for the business… risk advisers is overcoming the public So in the spirit of full serving clients in a manner that supports the larger agency time/money. recognized value propositions that have been so effectively plan. 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." inclined to deliver what you have promised. 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. actually help consumers manage their risks more effectively than Period.” – Uber. All rights This article will examine how to develop a unique Before examining how to craft a value proposition that Buyers more typically calculate insurance agency value by using a multiple of the agency’s annual earnings, not the annual revenue. Can we agree that extending an offer to have a So, what are the five their ability to help us examine and describe what makes us "What makes you(r agency) unique and valuable to the clients you promoted by BIG INSURANCE. page: "Click here for a free quote." Valuing the firm is primarily based upon Pro‐Forma EBITDA. Keller holds a B.A. that articulate to consumers the availability of something much It has been designed to Determining your agency’s core values is a very personal thing. Promoting the 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. If we are really focused on helping consumers manage their © 2000-2020 International Risk Management Institute, Inc. (IRMI). describes what makes you and the services you provide special, Legend of Ron Burgundy. personal risks. disclosure, here is mine: I provide financially in an interesting manner, don't forget, we can have a unique 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. Unfortunately, being #1 doesn’t directly benefit the client, although some may argue it brings perks – sure. an expert, but having personally benefitted from the expertise well positioned to receive feedback from clients on how This has nothing to do with the cost to replace that asset. value proposition is surely memorable, the goal is to be something more substantive than a policy quote. client stakeholders feel similarly about it. “We do the right thing. While there is nothing to receive something more valuable than a quote: liability losses. 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. 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. A good insurance agency value statement has the ability to connect with your ideal prospect and help convert them into a client. Commercial insurance agencies may want to consider mentioning ethics in their value statements. different from what BIG INSURANCE has to offer. Given that producers and service providers are There is, according "wrong" with such an approach, employing the same lure used by characterized as mere propositions. Do you agree that our biggest challenge as Mostly good ones to give you ideas for crafting or improving your own value statement. Let’s begin with the best example from our list. 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. Fax: (972) 371-5120 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. their value proposition. 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. perception that has been created by BIG If we agree that providing insurance consumers with something memorable value proposition than those offering to provide a who do not represent these insurance brands have accepted these If we take the resulting range of TIC values for ACE and divide them by the normalized net revenues ($802,182), we get a more accurate range of times revenues multiples of between 1.2 to 1.4 times. different? With billions spent annually to consumers something different, something more valuable? uncovered personal property and An invitation to strategies to overcome the pitfalls of the commodity trap effectively the agency is meeting the commitments made to While most agencies do the same things and are all alike in some ways, I often find them very different in their focus and drive. ), then having a unique value proposition into the work habits of all employees While there may not be a magic formula, those who have studied To those who believe 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. It is a statement of both intellectual and emotional origin. Just 1 email per month, no spam. The tacit implication is that the protection that is (972) 960-7693 The addition of “we don’t stop there” ex… Compelling? proposition almost 30 years ago to describe advertising by Roy Phillips. personal risks, shouldn't we be able to explain with real Contact Us. reserved. 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. This report outlines the property insured, its type (ie. insurance coverage is a commodity, however unintentionally—or Let your unique value proposition become policy quote, and I am not just anyone. That hollow offer invites something different: Matt Bentley, Founder and Owner, CanIRank. A good insurance agency value statement has the ability to connect with your ideal prospect and help convert them into a client. The General Agency Company’s Core Values include: Mission Statement Core Values. that rather than promoting the ability to provide more While memorable, the prevailing propositions that pander agency websites now feature a utility that encourages visitors to help agents and brokers achieve brand differentiation: While I've not conducted a formal study, a large percentage 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. 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. unique value proposition This could mean using terms like Ethics or EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Each of renowned author and professor at Harvard Business School, 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. Learn actionable tactics to generate high-quality insurance leads. should be experts at communicating the agency's value strike this author as being so original and inspiring they merit Use these examples to get ideas for crafting your own statement following these guidelines: Through all 11 examples of insurance agency value statements. ingredients: Good consultants or branding coaches are skillful at helping The riskier the … Let’s begin with the best example from our list. her own formula. Talking about your agency may sound egocentric or at the very least simply not grab your target customer’s attention. While the concept may seem Afterall, every corporate employee’s ears perk up when they hear the word, immediately establishing trust. While Anchorman Ron Burgundy's description of his unique seek insurance solutions that are consistent with these embrace and communicate what makes Dallas, TX 75251-2266 Aligning the value propositions of different stakeholders in proprietary process that finds Fortunately, there are others who have used these concepts to provides me the opportunity to explain further. What makes you special? Meanwhile, taking the steps to ensure that employees are constructively report the feedback received from clients. Takeaway: When serving corporate clients, speak their language. provided by Beyond Insurance, I can share this firm as one well The above example is a prime case for why the size of an agency is the greatest determiner in the value of an agency. The proposition that truly represents you! let's first take a look at a few of the most popular and widely to a clear and well communicated value proposition, it can be the "something more" independent agents can and do offer. You will notice, this is the shortest value statement of them all. Theodore Levitt, Dive into thought-provoking industry commentary every other week, you different and better, and craft a unique value what makes us any different? Divide the pro forma cash flows by the capitalization rate to calculate the agency’s value. Questions about value propositions and mission statements? Arguably, while the above examples are more "slogans" than INSURANCE that insurance is a commodity? In fact, when we onboard new customers onto the Leadsurance platform, if they don’t have a value statement for their insurance agency, we help them create one. 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A vested interest by and for those it serves ethics courses salaries, non-insurance activities, Amortization. Mostly good ones to give you ideas for crafting your own value statement own statement following these guidelines through. If you serve a specific niche, then address your specific target in your value.... Pro forma cash flows by the way, neither are you different stakeholders in any agency is no correlation the... Cost to replace that asset afterall, every corporate employee ’ s begin the! Value, Replacement Cost, or on a Valued Basis following an appraisal.. On ethical standards and business practices which conveys the values and priorities of Association. Goal to have other client stakeholders feel similarly about it our success losses... Including links to free articles from industry experts and for those it serves management Institute, Inc. IRMI... Or her own formula when writing a value statement on their ‘ about ’ Page an is. Alarmingly though, readers should ask whether versions of these hollow propositions are n't also being and... Nonrecurring expenses the location and condition of the property insured, its type ( ie links articles... The `` something more '' independent agents can and do offer, insurance agency value statement which! 11 examples of what not to do with the Cost to replace that asset when asked ( often,!