So, you’ve spent years of your life building your insurance empire, and now that you’re nearing 60, you know it’s time for you to make an exit. While preparing for retirement as an employee should not entail much work, it’s not the same story when you are an insurance agency owner. Any insurance consulting organization will tell you that it’s never too early to plan for it.
Why Plan for Retirement as Early as Possible?
Although you can decide to retire next month, it will mean a lot of work for you to do to ensure a smooth transition. Of course, you can’t just disappear in thin air and leave your agency out of the blue. Instead, you open for a valuation of your business to know your insurance agency’s worth. Doing this will maximize your profit.
We recommend that you start planning for your retirement 10 to 15 before you reach your retirement age since a profitable agency succession is not a short-term project.
Is It a Good Time to Sell Your Insurance Agency Today?
The answer to this is yes! Today’s business valuations have never been higher due to the low-interest rates. With low-interest rates, more people can afford to buy policies. In addition, the Federal Reserve released an announcement that the low-interest rates will remain like this despite the potential of seeing a higher inflation rate in the coming years. Thus, the valuations of agencies should remain high in the following years.
COVID’s Effects on Insurance Agencies
This is something to take into account, however. Because of the economic disruptions created by COVID, many insurance agencies are losing customers. And experts say that this will continue to happen even until 2025. While this sounds like a threat, taking advantage of insurance business consulting will help you maneuver this dilemma to maintain and grow your income. With good income comes good insurance agency value.
Let Insurance Consulting Efforts Scale Your Business
It’s no shame to ask for help from experts. At Energia Consulting Partners LLC, we promise to provide honest and customer-first assistance to every client. Give us a call today to learn about how we can help you.