Home › 3 Things You Need to Know Before Buying an Insurance Agency

Purchasing an insurance agency can be an overwhelming undertaking. Whether this is your first venture into the industry or seeking to expand an existing business, there are many variables to consider that the average person might not be aware of. Energia Consulting Partners, LLC. wants to give you the top three things you need to make your insurance acquisition fast and effective.  

Consider the Book of Business 

A book of business is essentially a comprehensive listing of the policies an insurance agency holds. When purchasing an insurance agency, you want to do a thorough revision of the standing policies and determine their aggregate value. This will already be a substantial acquisition so the future evaluation must end up as a positive return on your investment.  

Know Why the Agency is Being Sold 

Was there a bankruptcy? Was the company unable to sustain itself due to a lack of profit? These are essential questions to answer before you invest. Losing money is a natural part of business, but you need to know that your venture will be worth it in the long term if you are investing. Learning about why the business is being sold will help you understand whether this will be a risk worth taking.  

Incentivize Your Clients Right Away 

Many purchasers have an unrealistic expectation that all policyholders will choose to remain with the agency. If those clients have developed a relationship with their policyholder, they might not want to stay once the company changes hands. That’s why it’s essential to work with those clients from the onset to make sure you give them a reason to stay. 

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Interested in Purchasing an Insurance Agency?  

Trust the experts with a combined over 150 years of experience in the insurance marketplace. At Energia Consulting Partners, LLC, you won’t only find an extensive market of agencies for sale, you’ll also find the guidance you need to navigate a complicated process. Contact us today to learn more!