Hi…Jeff Berson here. I have worked in and around the insurance world for almost 40 years. In that time I have worked with some of the best minds in the financial industry. With this blog I hope to bring some of the best concepts, the brightest ideas and the latest information to help you succeed. It may not always be my personal idea but it will surely be "Bersonal"
There are many reasons why you may be considering selling your insurance firm. Maybe you are reaching retirement? Perhaps you need to sell because of unforeseen personal reasons? Or, are you simply looking to capitalize on the favorable conditions at present? Many would agree that there is no better time to sell an insurance company, as more and more people are investing in their well-being and assets and purchasing insurance. Below, we take a look at the different factors you need to consider when selling your insurance company.
Diversifying your client base
Of course, you will want to ensure you can secure the highest possible price when selling your insurance firm. There are a number of different ways you can do this. One option to consider is diversifying your clientele. There are many businesses in the insurance sector that have one or two big clients that make up the vast majority of their revenue. A buyer is going to see this as a huge risk. What if one of the clients up and leave when someone new takes over? To make your firm more attractive, you should diversify your clientele.
Is your service up to scratch?
You also need to focus on providing the best possible customer service. People so often get frustrated with insurance providers. They feel they can never get a straight answer or that it is difficult to get the help they need. Make the effort to be different. Reinforce customer relationships by checking up on clients. This will enable you to boost your retention rates, which can only be a good thing when selling your business.
Focus on group plans
You should also focus your attention on group plans. Group plans can be tough to secure, but they tend to be the best source of revenue for insurance companies. Of course, you shouldn’t forget about individual plans, but if you can secure a number of group plans, this can help to make your business more appealing, which can result in greater profit made when you come to sell. If you are finding it difficult to secure group plans, you should consider offering extra services to help you win the bid.
It may sound obvious, but your sales volume is of paramount importance. Once you have decided to sell, it can be easy to lose the will to secure new business. However, business valuations in the insurance sector have a large reliance on profits and revenues. The overall value of your firm is going to decline if your books decline, so it’s important to make sure this doesn’t happen. Boosting sales should be part of your long-term strategy, so focus on developing an effective sales team. Offering incentives is a great way to foster healthy competition and boost results.
There is a lot to consider when selling an insurance business. Nevertheless, if you follow the tips that have been mentioned above, you can increase the chances of selling your business, and you can ensure you do so for a tidy profit. It is all about making your firm as attractive as possible to potential buyers.
40 years in and around the industry has made Insurance a part of my DNA. I have had the pleasure of working with and for some of the greatest minds in our industry. My "Bersonal" View is an attempt to capture some of the best ideas, the best concepts and the best practices in a way that can lead to success for others. It will certainly be my point of view, so please...don't take it "Bersonal".