An article I authored regarding the importance of annual accountants’ reviews sparked a lot of emails from agents sharing their experiences about having their agencies audited. Stories ranged from one agency that discovered an employee was embezzling funds, to another that learned their long-time bookkeeper (who happened to be a partner) was totally incompetent at keeping books. Others shared simple but large mistakes, some were in the agency's favor and some against it. In e

Deep in the Louisiana swamps there lies the legend of the voodoo queen, Marie Laveaux, who provided simple but costly answers for people in search of hope. According to legend, she would concoct a potion that caused a man’s heart to change with just one short kiss from a young girl’s lips. Forever after, he would be devoted only to her. For 1,000 Spanish bits or possession of the woman’s first born, Marie would undo the spell. Marie became a rich woman. People pay dearly for

How big does an agency need to be to prosper and be safe from extinction? Small shops (with less than $500,000 in revenue) undoubtedly must grow (excluding some specialty and non-standard auto agencies). These small agencies have books of business too small for companies to make a profit. Given companies’ recent loss ratios, many companies probably cannot breakeven on anything less than $250,000, and they may even require as much as $500,000, premium. Some may argue small age

A Dilbert cartoon shows the boss telling Dilbert “I heard that you won’t give marketing the information they need.” Dilbert replies, “I respectfully decline the invitation to join your hallucination.” I found this cartoon very funny because as a past employee of several Fortune 500 companies, I can attest that some requests for information grow out of someone’s hallucinations. No other explanation exists for it! I also find this cartoon very applicable to some insurance agenc

Banks are buying agencies, agencies are developing relationships with banks, insurance companies are opening banks, and a dozen other types of relationships are being developed to meld bank and insurance customers. Offering banking and insurance services makes strategic sense because the more services a client purchases from one business, the more likely they are to stay a customer of that business. Also, the first service purchased is the least profitable, while all secondar