e-Insight - December 2023 by Big I Illinois

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INSIGHT AGENCY GOALS Top 10 Goals for Every Successful Agency

Plus

Build a Strong Budget Selling vs. Perpetuation

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December 2023

Editor & Graphic Design - Rachel Romines

Advertising - Tami Hubbell

CONTENTS 11

10 11 13 18 20 23 24 31

Trusted Choice Hard Market Toolkit Insolvency Issues and Your E&O Policy By Carol Wilson

Were You Prepared for the Hard Market? By Curtis M Pearsall

Top 10 Objectives of Every Successful Insurance Agency By David Siekman

How to Build a Strong Budget for Your Agency By Lauren Washington

The Importance of a Strong Balance Sheet By Craig Niess

Selling vs. Perpetuation: How Independent Insurance Agencies are Planning for the Future By Agent for the Future

Get Involved! Association Seeks Volunteers

In This Issue

The Independent Insurance Agents of Illinois (IIA of IL) has been providing members with a sustainable competitive advantage since 1899.

8 Brett’s 5 Sense 17 e-Insight 28 Associate News 30 Association Update

32 Agency Members in the news 33 IIA of IL News 34 Classifieds

info@iiaofil.org | www.iiaofil.org | (217) 793-6660

2009 • 2010 • 2011 • 2012 • 2013 • 2014 • 2015 2016 • 2017 • 2019 • 2020 • 2021 • 2022 • 2023

Insight is the official publication of the Independent Insurance Agents of Illinois (IIA of IL). The magazine is published monthly for the members of the IIA of IL, with the office located at 4360 Wabash Avenue, Springfield, Illinois 62711-7009; Consumer Website: www.ChooseIndependent.com. The IIA of IL welcomes letters discussing concerns of the insurance industry, articles, editorials, other matters of interest to the membership. The editor reserves the right to edit and select submissions for publication. Address submissions for review to Rachel Romines at rromines@iiaofil.org. For advertising information, contact Tami Hubbell at thubbell@iiaofil.org.

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IIA of Illinois Staff Director of Information and Technology Shannon Churchill (217) 321-3004 - schurchill@iiaofil.org Director of Education and Agency Resources Brett Gerger, CIC (217) 321-3006 - bgerger@iiaofil.org Accounting & Admin Services Tami Hubbell, CIC (217) 321-3016 - thubbell@iiaofil.org Director of Human Resources, Board Admin Jennifer Jacobs, SHRM-CP (217) 321-3013 - jjacobs@iiaofil.org

Sr. Vice President/Chief Financial Officer Mark Kuchar (217) 321-3015 - mkuchar@iiaofil.org Chief Executive Officer Phil Lackman, IOM (217) 321-3005 - plackman@iiaofil.org Central/Southern Marketing Representative Lori Mahorney, CISR Elite (217) 415-7550 - lmahorney@iiaofil.org Director of Government Relations Evan Manning (217) 321-3002 - emanning@iiaofil.org Office Administrator Kristi Osmond, CISR (217) 321-3007 - kosmond@iiaofil.org Director of Communications Rachel Romines (217) 321-3024 - rromines@iiaofil.org Director of Membership Services Tom Ross, CRIS, CPIA (217) 321-3003 - tross@iiaofil.org Director of Prof. Liability & Ins. Products Carol Wilson, CPIA (217) 321-3011 - cwilson@ilbigi.org

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Budgeting and Perpetuating Budgeting is the worst part of life because it is then when you realize that you don’t make enough or bring in enough money to be where you perceive that you should be. Budgeting for your agency is just as important, if not more important, than budgeting for your personal finances. Where do you start and why is it so important? The two groups that I know won’t read this, nor will they try to live within their means, are State and Federal politicians. Just because they say it is balanced does not make it true. Our current Governor claims he has had a balanced budget (which I would think means what we pay out matches or is less than what we take in) for every year that he has been in office. The truth is that Illinois has realized over $5 billion in deficits in the last three years. In reality, Illinois hasn’t had a balanced budget since 2001. This brings me to my first point in that the Governor does propose a balanced budget every year, but then through budgeting gimmicks and magic, we outspend that budget by billions of dollars. When you create your budget, don’t pull an Illinois by ignoring the budget you set. If you are not going to set a realistic budget, then what is the purpose of the budget? Perspective buyers are going to see detailed clear budgeting that if you do go above, you have clear and concise reasoning. On-track budgeting says competency to

me, and we all want to do business with competent parties. Let us be real in that a good account can make numbers dance and look how they want you to perceive things financially. The thing they have trouble hiding or framing is what you bring in and what you pay out. When I was at the Department and did financial exams, agents found very creative ways to manipulate money for their benefit. They always got caught as it was simple math: do you hold money in trust (deposits minus lawful withdrawals). Budgeting is the same - do you pay out more than you take in? There are always unforeseen circumstances that can blindside you (air conditioner goes out ahead of schedule/useful life projection) but good budgeters include a fairly accurate accounting projection for those circumstances. Unlike the State or the Feds, you do not have unlimited access to money or resources. You need to start with constants that you know you have to pay. These are the easy things to budget for as they are set such as leases, mortgages, salaries, supplies, etc… Then revenues, you hope to grow, but at what rate? 1%, 3%, 5% or whatever you have forecasted. Historical numbers will help in that process. I would always lean conservatively by

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underestimating (under-promise, over-deliver) on revenues and overestimating costs and contingencies to give you the most wiggle room. If you do the opposite, you will quite frequently be over budget and in the same boat as Illinois, and nobody wants to be Illinois. To help with revenues and budgets, I would invest PFTA funds to generate revenues. The law allows for this, and all you need to do is get permission from the insurer. This is free money so to speak. Do not leave this on the table. The hassle to get permission will be worth it for the bottom line. Most of the time I have seen insurers give permission in your contract with them. I have not been made aware of an insurer that does not allow you to invest the PFTA funds. The best vehicle is a money market account and rates are great right now. If you have a good book of business, this could pay for a piece of software or something else that is discretionary but adds value to your agency. When budgeting, you will face tough questions as to what gives you the most bang for your buck. You may have to budget something over years rather than months. For example, will you need a new or bigger building or will the building we are in need sizable repairs in the near future? Don’t budget for the here and now. Budget for where you are and where you are going. This is why mission, vision and value statements are critical as they give you a roadmap to follow. Don’t create these because that is what your business class or business seminar told you that you needed to create them. Create them with the purpose of guiding your every move. If these statements don’t match your direction, then rethink and recreate the statements.

Brett’s 5Sense (inflation)

As always, this just Brett’s 5 Sense (who are we kidding, this is probably the new normal) and I hope it was helpful. You can contact me through my CONNECT and if it is urgent, do not hesitate to reach me through CONNECT. I may be pushing you to CONNECT. If you need any clarification or have any suggestions for future articles please email me at bgerger@iiaofil.org

At the end of the day, budgeting is magic, and getting actual vs. budgeted numbers close involves a little bit of luck. But as a coach once told me, “Luck is where preparation meets opportunity.” So budget with a purpose, foresight and accuracy based on all the information available to you. Tough choices are always made in every budgetary cycle. Utilize your business’ statements to guide you. If you are looking to perpetuate or sell, good budgeting processes and work products will scream competency. If I’m purchasing an agency, I would want to know what is their mix, are they profitable and lastly, what are their processes? Showing that you have a good mix, you are profitable and that your processes are able to be easily replicated, makes you way more attractive to more buyers. Budgeting is part of that mix, so make sure you develop a budgeting process that can be easily followed and replicable but, most of all, accurate. Details matter and budgeting is a huge detail that sometimes gets neglected.

Brett Gerger | IIA of IL Director of Education & Agency Resources bgerger@iiaofil.org | (217) 321-3006 december 2023

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Looking for Support on How to Communicate in this Market? Check out the Hard Market Toolkit brought to you by Trusted Choice During these challenging times of rising premiums in a hard market, independent insurance agents are more important than ever.

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Insolvency Issues and Your E&O Policy By Carol Wilson, CPIA In the wake of the MutualAid eXchange insolvency and indications farm mutuals are not covered by the Illinois Insurance Guaranty Fund, it is an opportune time to review the risk that carrier insolvency poses to your agency and whether there is coverage for this exposure under your Agents Errors & Omissions policy. Insolvency occurs when an insurance carrier’s liabilities exceed its assets, and it is no longer able to cover its debts including claims. If your customer has a claim and their insurance carrier is insolvent, there may be no funds available to pay the claim. Some insurance carriers may be backed by the Illinois Insurance Guaranty Fund (iigf.org) which provides recourse for customers if their carrier goes insolvent. Generally, the declaration page of an insurance policy will indicate if the carrier is not a member of the Illinois Insurance Guaranty Fund.

Utica

If a carrier does go insolvent, your customer could bring a claim against your agency for placing coverage with a carrier that was not financially stable or for not disclosing the carrier was not backed by the guaranty fund. Your Insurance Agents Errors & Omissions policy likely excludes claims involving insolvency with certain exceptions. Below are examples of insolvency exclusions from the major Agents Errors & Omissions carriers. Both forms exclude insolvency; however, there are significant exceptions - including carriers that were highly rated at the time of placement, or if the carrier is covered by the state guaranty fund. In the case of farm mutuals there are exceptions for high ratings, and when they are reinsured by highly rated carriers. If you have a policy with a different Agent Errors & Omissions carrier, they will have an insolvency exclusion that may contain different language. As you assess your agency’s exposure to carrier insolvency risk, you should consider whether you are placing coverage with carriers that are highly rated by AM Best or Demotech or are covered by the Illinois Insurance Guaranty Fund. Unrated or low rated carriers and carriers that are not members of the guarantee fund may expose your agency to an uncovered E&O claim. Of course, there is no substitute for reading the insolvency exclusion contained in your Agents Errors & Omissions policy and familiarizing yourself with the exceptions to the insolvency exclusion. Carol Wilson, CPIA, is the Director of Professional Liability & Insurance Products for the IIA of IL. She can be reached at cwilson@ilbigi.org.

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december 2023

There is no substitute for reading the insolvency exclusion contained in your Agents Errors & Omissions policy and familiarizing yourself with the exceptions to the insolvency exclusion.

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Were You Prepared for the Hard Market? By Curtis M. Pearsall Without question, agencies around the country are all reporting a wide variety of issues that are symbolic of a hard market. These include increased premiums, reduced capacity, restrictive policy terms, and stricter underwriting from carriers, to name a few. While the impact of the current market will vary based on the location of the agency and its customers, it is fair to say all agents are dealing with a different market today as compared to five years ago.

More restrictive policy terms.

How agencies deal with the hard market will certainly impact to what degree the market affects their bottom line. There are a number of “best practices” that agencies should note.

With the COVID-19 pandemic, carriers are likely including various communicable disease exclusions to clarify the lack of coverage. There may be additional restrictions agents need to be on the lookout for. While admitted carriers are generally required to notify customers when they are reducing coverage, surplus lines carriers are not required to do so. There is a chance that you will find a new exclusion or coverage change when you receive the renewal proposals from the wholesaler. This could be literally days before the account renews, so agents should try to be proactive in asking their wholesalers as early as possible. Periodic follow-up is suggested to make sure the account is being worked on.

Start with the agency staff.

Moving coverage to a new carrier.

Since it has been a while since the industry has experienced a tightening, there is a good chance the agency has employees that have never been through a hard market and may not understand how to deal with it. Because there is a possibility that this market will cause some “emotion” from policyholders, counsel the agency staff on how to deal with customers that have just been advised their premiums are going up anywhere from 10% - 50% or higher based on the specific type of customer and the line of business affected. It is suggested to meet with the staff, discuss the issues, and train the employees accordingly.

Communication with your customers is key.

There is a good chance that you have customers who have been negatively affected by the COVID-19 pandemic. As a result, communicate with them on what their upcoming renewals will look like and what they can expect in the way of pricing and coverage terms. Many customers have never experienced a hard market before and may not understand the issues that result from one.

If the marketplace prompts a need to remarket the account, agents should be especially sensitive to doing a comparison between the expiring coverage and the proposed replacement coverage with reductions brought, in writing, to the customer’s attention. Encouraging the customer to read their policy is also strongly suggested. This marketplace will affect virtually every agency. The better prepared an agency is for all of the issues they will face will determine to what degree the agency is affected. Curtis M. Pearsall, CPCU, AIAF, CPIA, is president of Pearsall Associates, Inc. and consultant to the Utica National E&O Program. This information is provided solely as an insurance risk management tool. Utica Mutual Insurance Company and the other member insurance companies of the Utica National Insurance Group are not providing legal advice, or any other professional services. Utica National shall have no liability to any person or entity with respect to any loss or damage alleged to have been caused, directly or indirectly, by the use of the information provided.

Reduction of limits.

It is certainly possible that a customer may desire to modify their coverage through options such as reducing their limits or increasing deductibles, especially in carious lines – such as umbrella, professional liability, and directors and officers – that have been hit harder by the current market. When this happens, have these discussions well documented and memorialized, not only in your agency file, but with communication back to the customer. december 2023

How agencies deal with the hard market will certainly impact to what degree the market affects their bottom line.

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e INSIGHT -

online journal at www.iiaofil.org/Resources/Insight

DE CE M BE R

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INSIGH T

AGENC GOALS Y

Top 10 Ever y Goals for S Agenc uccessful y

Plus

Build a Str ong Budge Selling t vs. Per petuat io

How to SET GOALS for Your Insurance Agency

(and achieve them)

By Assurance IQ/Nectar

In this month’s e-Insight. december 2023

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Top 10 Objectives of Every Successful Insurance Agency By David Siekman

Objective #1 Routine Work and Development of Agency Culture Make insurance fun! Celebrate when things go well within the agency, whether it is hitting a specific goal or a milestone for an individual or an agency. Share your passion with your staff. If you have passion, they will too!

Objective #2 Forever Recruiting Most small businesses make the mistake of waiting until they have an open position to start the recruiting process. Not only does this cause a delay in the hiring process but reduces the odds of finding the right person. This approach reduces the odds by needing to find the right person for the right job at the right time. A Forever Recruiting approach keeps the door open for discussions with numerous people that may be fits in the future. When the need arises, you have a whole group of people to choose for the right fit.

Objective #3 Consistent Meetings Most agencies that we work with have the intent to meet on a weekly or monthly basis but many of them tell me it doesn’t happen for one reason or another. Being consistent is committing to running this meeting 52 times a year. It doesn’t matter that it is summertime, the holidays, people are on vacation or even that the principal/manager is out. Whoever is in on that day attends the meeting. If the manager is out, someone else runs it. If the regular meeting day falls on a holiday, move it to another day of the week!

Objective #4 Strong Centralized Leadership A strong leader sets the mission and vision of the agency. They are working on identifying customer experience and investigating technology. Their Immutable Laws (for those of you that asked me about business books that are worth reading (not just blogs stretched into books), do yourself a favor and pick that one up!) are Accountability, Execution, and Innovation.

Objective #5 Feedback Loop Creating a culture of performance can only be done when there is positive and constructive feedback that goes both ways. Team members want structure; they will perform their best when they are given feedback and structure and are held accountable.

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Objective #6 Goal Setting with Incentive Plans Furthering the culture of performance is done through clear goals with incentives driving them. This does not have to be complex (although it is okay if they are). Simple goals around new business and retention go a long way. It is always great to have goals and incentives around projects that need to get done as well. If we don’t, projects have a tendency to be pushed down the priority list to the point where they don’t get done!

Objective #7 Agency Technology Don’t be left in the past! Embrace new agency technology. It is much better to improve a process or system than simply add staffing. Get involved and create a plan to make it happen.

Objective #8 Consistent Training Most agencies have a plan for CEU and even designation training. These are much needed and help us with our insurance knowledge. However, we provide a service as much as a product. Training for insurance agents on service issues (handling upset clients or rate increases) as well as sales, marketing, team building, etc. are much needed to run a successful agency.

Objective #9 Marketing & Branding Your agency needs a brand to compete. Why is your agency special? Why should a prospect chose to do business with you? Why should a client stay with you? Branding is much more than colors and a logo. It is also more than a mission statement that no one in the office can recite (nevermind one that is actually followed).

Objective #10 Target Markets Build your offering around who you want to write. Who are they? Where are you going to find them? What can you do to make their lives easier? What is important to them? Remember the Platinum Rule (while a life changing concept, no need to read the book, the concept is simple (which is part of its genius!) is to make it about them (not you)! David Siekman is a Performance Specialist at Agency Performance Partners. He can be found on LinkedIn at www.linkedin.com/in/davidsiekman.

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How to Build a STRONG BUDGET for Your Agency By Lauren Washington Budgeting is the practice of trying to reasonably estimate a company’s future expenses and revenue streams so you can monitor the company’s financial health and make informed decisions.

Understand Your Income Statements

Budgeting does not need to be hard, and in this article we are going to do our best to simplify it for you. With a little time and consistency, a budget can be one of the most powerful tools you’ll ever have inside your agency. Let’s break it down!

Revenues can be further categorized into Commissions & Fees, Contingency/Bonus, and Other Income:

Start With Goals Creating a budget should start with a list of goals. Ask yourself, what are the long-term goals for the Agency? What will success look like in the near term? Make sure that the goals that you set are (SMART) Specific, Measurable, Achievable, Relevant, and Time-based. These goals will have an impact on your revenues and will also determine where you will need to allocate your resources in the next year. Your goals will help identify the specific areas that you want to invest in to ensure that you are making progress. Many agencies operate without a budget and instead rely on their gut instincts, or worse, have to wait until the end of the year to determine if the resources needed to invest in new tools or resources are available. Having a budget can provide you with greater clarity and allow you to act with confidence.

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Income statements are split into two major sections: Revenues and Expenses.

• Commissions & Fees: This category can include any revenue resulting directly from sales of insurance to Agency customers. This includes direct bill commissions, agency bill commissions, agency fee commissions, and any commissions received from insurance brokers. Only the agency’s portion of commissions and fees belong in this category. Any revenue collected in an Agency Bill situation that is to be remitted to a carrier should not appear on any part of the income statement because it is not owned by the Agency. This portion is collected and held in a Trust Account on the Balance sheet until it is remitted to the carrier. When budgeting for Commission and Fee Revenue consider: • Expected Renewal Income: This should be based on last year’s performance, your agency’s retention rate, expected rate increases, and any other expected changes from carriers. Be sure to eliminate any polices that you know have been lost or by their nature are not expected to renew (for example bonds).

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• New Business: Include the new business you expect in the coming year based on the goals that you have set for your team. • Contingency/Bonus This category includes all contingency income received from carriers, and any bonus income received from a cluster/network/aggregator/alliance. It differs from Commission & Fees income from a budgeting standpoint, because, although it is an indirect result of sales, it is contingent upon your performance and the guidelines set by each carrier for new business production, retention, loss ratios and other factors. It can also be impacted by the performance of a network/aggregator/alliance that the agency is a member of. As you know, contingencies can vary and are not guaranteed. We strongly recommend that agencies do not include contingencies in their operating budget. • Fee Income Any fee income can be estimated based on the previous year performance as well as the goals for the upcoming year. • Other Income Oftentimes, Agencies will have revenue streams resulting from activities not related to the sale of insurance. For example, if the Agency owns their office building, they may have rental income. Expenses are categorized into four categories: Payroll & Benefits, Selling Expenses, Operating Expenses, and Administration Expenses: Payroll & Benefits • Payroll: This category should contain any wages, commissions, salaries, and bonuses paid to the Agency’s owners/employees andany amounts paid to 1099 Employees (outside contractors). It should notcontain any dividends paid to shareholders, which are considered administrative expenses. • Benefits: This category contains any expenses associated with employee benefits. It can include items such as retirement plans, employee insurance, and the employer portion of payroll tax expense (This does not include employee withholdings, which should not appear on the income statement.) Selling, Operating, and Administration: • Selling Expenses: Selling expenses are expenses that result from efforts to make sales or retain customers. The most common categories in this section include marketing, promotions, advertising, travel, meals, and automobile expenses. It should not include expenses that are necessary for the day-to-day operations of the Agency. For example, although an office renovation may increase sales by improving customer experience, the main result of the renovation is not increased sales but providing a safe and effective work environment. A customer referral program, by contrast, increases sales directly. For this reason, the entertainment, meals, travel, and automobile expenses that should appear in this section are expenses directly associated with sales activities, not personal meals, travel, or vehicles.

• Operating Expenses: Operating expenses are expenses incurred to ensure that the Agency can continue to operate effectively. Some common expenses included in this category include, rent, utilities, technology, licenses, business insurance, and professional services. For example, telephones are necessary in order to ensure that the Agency is able to contact clients, potential clients, and carriers. Therefore, telephone expenses can be considered operating expenses. However, personal cell phones should not be included in this expense if they are not used for business purposes (similar to automobile expenses, discussed above). • Administration Expenses: Administration expenses are expenses that cannot be directly attributed to the operation of the agency. For example, Officer Life Insurance (also known as Key-Person life insurance) is included in this category because this expense is not a result of the Agency’s efforts to sell insurance and is not necessary to maintain the day-to-day operations of the Agency. It also includes expenses like Depreciation, Amortization, Interest Expense, and Shareholder Distributions. In calculating EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), many (if not all) administrative income and expenses are removed or added back in that calculation.

Projecting the Future When budgeting for any business, it is important to estimate any increases/decreases in expenses, capture new expenditures that are expected in order to accomplish your stated goals as well as the estimated increases or decreased in revenue. Typically, agency revenue cannot increase without agency expenses increasing as well. For example, your business plan for next year might be to increase Agency Commissions by 10%, but how are you going to achieve this goal? You will need to consider what amount of your current book of business you expect to retain. Remove any accounts that will not renew, like bonds for example. In addition, apply a reasonable assumption for your retention rate based on past performance. Then plan out how you will achieve that goal, for instance, you might need to hire a new producer, start a local ad campaign, or invest in a tool or technology to help create capacity on your team. When planning for revenue goals, keep in mind that revenue can also change due to circumstances like economic conditions, but these changes are harder to predict. Changing circumstances can affect multiple parts of the income statement. For example, if a producer is retiring, this will decrease next year’s compensation expenses, but it will also decrease next year’s revenue. When making an adjustment to revenues or expenses, remember to consider how this circumstance may affect other parts of the income statement. Sometimes the effects of changing circumstances can be hard to predict, such as the effects of local economic conditions. For example, if a large company opens up a new manufacturing facility in your area, it will likely improve the local economy, but it is hard to calculate the effect it will have on your Agency. In creating a budget continued...

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for your Agency, it is better to only include increases in revenue when you can easily estimate them and when they have a fairly high likelihood of occurring. Remember: Your Agency’s expected revenue will set the “tone” for your Agency’s expected expenses. Overestimating future revenue may result in overspending if you are not cautious.

Use Reputable Information Sources Ideally, estimates for specific expenses should draw on real data. One method for estimating your future expenses is to obtain estimates directly from the business(es) you are expecting to purchase goods/services from. For example, the price of a new Agency Management Software can usually be obtained by either going to their website or by contacting the manufacturer directly. This is the ideal method for estimating expenses because it reflects the cost of the item right now. Occasionally, a new expense may not have a “market price”, or the market price may be difficult or impossible to obtain. For example, you may be expecting to add a new producer, but are not sure how much you will have to pay them in their first year, and furthermore, you are not sure how it will affect your revenue. The best option in

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this case is to look at past data and use it as a benchmark. Historically, how much have you paid producers in their first year on average? How much revenue have new producers generated in their first year on average? Once you have built your budget, be sure to share the goals and measurement metrics with your team. One of the benefits to establishing a budget is determining the key performance metrics that you can use to assess your overall and individual performance across the team. By mapping out the year, you can have well-defined metrics that you can use as a gauge all throughout the year. This oversight and management will allow you to adjust or pivot if something unexpected occurs or if a new opportunity arises.

Free Budgeting Template AgencyFocus has created a budgeting spreadsheet that can be used to start developing a budget for your agency. To download the spreadsheet, and for details on what the template includes, go to https://agency-focus.com/ agencyfocus-blog/budgeting-for-your-agency. Lauren Washington is the Financial Analyst & Accountant for Agency Focus, an independent insurance agency consulting firm. She can be reached at lauren@agency-focus.com.

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The

Importance of a Strong Balance Sheet The value of a balance sheet is a key component in the calculation of agency value. We encourage our IA Valuations clients to bolster their balance sheets, not only to increase their agency value, but also for a myriad of reasons that will have both short-term and long-term impacts on the agency.

Agency Reinvestment Agencies with strong balance sheets have the ability to deploy this capital to make investments to drive revenue growth and profitability. By investing in people and training, the agency will position itself to drive revenue. It is expensive and time-consuming to hire and validate a new producer, but having cash reserves will help ease the burden on the agency. Additionally, with the dearth of high-quality talent available in the current market, having cash reserves will provide you with a let-up when opportunities to hire arise. In addition, by investing in state-of-the-art technology, the agency will gain efficiencies and drive up profitability. This technology can be used as a recruiting tool to hire techsavvy next generation talent.

By Craig Niess

Rainy Day Fund Having an agency savings account will enable you to weather any economic downturns, or the impacts of legislation on your agency. If you are stripping all of the cash out of the agency, changes in the external market factors that are out of your control could put added stress on your agency. Having a nest egg to tap into will give the agency a lifeline during unstable times. Having a strong balance sheet will allow you to increase your value in the short-term, by providing a way to invest in the people who will drive growth, and the systems that will drive efficiencies. It will also provide a safety net and increase stability in uncertain times. Lasty, it will increase the value of your agency when you eventually perpetuate. We encourage all agency owners to examine their balance sheets, and to use them as a way to reinvest in their greatest asset. Craig Niess, CVA, MBA is Director of Business Planning & Valuation for IA Valuations and can be reached at craig@ iavaluations.com.

Perpetuation Options Having a strong balance sheet gives agency owners options when they look to perpetuate. Without a strong balance sheet, it is difficult for an agency to perpetuate. By tapping into retained earnings, an agency owner has several options when looking to transfer ownership. Cash can be bonused to key employees, who in turn use the bonuses to buy agency stock. Other options include providing a down payment for seller financed notes, collateralizing outstanding notes, and providing funds to repurchase outstanding shares. december 2023

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SELLING VS. PERPETUATION How Independent Insurance Agencies are Planning for the Future

By Agent for the Future What will happen to your insurance agency when the principal retires or can no longer run the agency?

The Challenges of Insurance Agency Perpetuation

This is an important question for every independent insurance agency owner to consider. The answer to this question is the agency’s perpetuation plan.

There are many different options for selling or perpetuating an independent insurance agency, but they boil down to two main methods: internal perpetuation or external sale.

Perpetuation planning is becoming a pressing issue as many agency principals near retirement age. The research team at Liberty Mutual surveyed more than 1,100 independent insurance agency team members for the 2023 Agency Growth Study, including more than 450 agency principals and owners. Of the principals surveyed, 40% were older than 60, and 20% were older than 65. Half of the principals surveyed said their agency will experience a major change of ownership in the next 10 years.

The 2023 Agency Growth Study found that internal perpetuation is the most popular plan among agency owners. But with the insurance industry facing a talent shortage, finding and developing successors can be difficult. Even when a family member is taking over the business, successful internal perpetuation requires careful planning and ongoing mentorship years in advance of the principal stepping away. In the 2022 Agency Universe Study, principals listed a lack of available talent as their top obstacle to the future of their agency ownership.

However, perpetuation planning is not just about retirement. Unforeseen circumstances could force agency owners of any age to step back from leading the agency. A clear, well-documented perpetuation plan can help protect the agency, staff and clients if something unexpected happens. In this report, we’ll explore key findings about agency perpetuation from the 2023 Agency Growth Study.

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Agency owners who can’t perpetuate internally often opt to sell. In the last few years, selling was an attractive option. Mergers and acquisitions reached an all-time high in 2021, and an influx of private equity buyers gave agency owners more options to sell and to do so for higher multiples. However, M&A activity has significantly slowed in the face of economic uncertainty. Markets are quickly changing, and agency owners may not have as many offers and options to sell – especially those who own small P&Cfocused agencies.

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Agency Perpetuation Plans Differ From the Reality of Agency Acquisition

Whether planning to sell or hand the agency off to internal talent, it’s important for agency owners to know their options and have backup plans. Insurance agency perpetuation plans will likely shift and evolve over time, but it’s never too early to start planning. Taking a longterm view can help owners identify their goals for the perpetuation process, maximize the value of the agency and develop future agency leaders.

Most agencies have some sort of perpetuation plan in place. Nearly 70% of agency principals said they have a plan for who will take over the business. The most common perpetuation plan is for children or family members to take over the agency – 42% of principals who expect an ownership change in the next five years are planning for a family member to take over.

Half of Agencies Anticipate an Ownership Change in the Next 10 Years Just over half of agency principals anticipate a major change in agency ownership within the next 10 years. Slightly less than a third of principals anticipate ownership to remain the same for more than 10 years, and 16% aren’t sure about future ownership plans. Agency staff members are less likely to know about plans for agency ownership – 47% of those in non-principal roles said they don’t know when there will be a change in ownership.

Other perpetuation plans differ depending on the size of the agency. Agencies with more than seven employees are most likely to plan for other principals to buy out a departing owner or principal’s interest. Agencies with fewer than seven employees are more likely to consider selling to an outside party. However, there is disconnect between how agencies plan to perpetuate and the reality of how people become agency owners. When we asked agency owners and principals how they came to run the agency, 53% said they started the agency from scratch. Just 17% took over from a family member.

AGENCY PERPETUATION PLAN

Among principals expecting an ownership change in the next 5 years. 42%

Children or other family members will take over

37%

Other principals will buy the principal’s interest

30%

An outside party will buy the principal’s interest Non-principal employees will buy the principal’s interest Producers will become part owners when their book reaches a certain size

16%

11%

THE PATH TO OWNERSHIP FOR PRINCIPALS 53%

Started an agency from scratch

22%

Left a captive agency to go independent Worked as a producer and became an owner after a certain length of time

19%

Took over agency ownership from a family member

17%

Bought an existing agency or book of business from another agency

10%

Worked as a producer and became an owner when their book reached a certain size

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continued... insight

Promise.

Insurance coverage is really just a promise. A promise to be there when things go bad. A promise of “we’ll take care of your customers.” Find out more about the Silver Lining and how we value our agent relationships. Visit thesilverlining.com.

The worst brings out our best.® 26

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december 2023

Developing Future Insurance Agency Leaders

Best Practices for Increasing Agency Value

While many agency owners want to keep their agency in the family, family members aren’t the only option for internal perpetuation. And there’s no guarantee that the identified family member will want to perpetuate the agency – especially if they’re not currently working in the insurance industry.

The 2023 Agency Growth Study found that agencies that plan to perpetuate in the next five years are less focused on growth and less likely to use digital tools than agencies with a longer timeline for perpetuation.

Hiring great staff members of varying ages and investing in leadership development can give agency owners more options for internal perpetuation. Our 2023 Agency Growth Study found that more than half of Millennial and Gen Z agency employees (those under 41 years old) and about a third of Gen X employees (42-57 years old) aspire to lead an agency one day. Providing leadership development can help agencies attract top talent. Millennials and Gen Z listed “inspiring leadership to provide mentorship and career guidance” at the top of their list of characteristics they look for in an ideal employment situation, with 62% saying it was one of their top priorities. However, only 42% of younger employees said their manager is actively developing them for leadership. And, as explored in our report on women in independent insurance agencies, agency owners may be overlooking promising female employees who could be great candidates for succession. Only 38% of women working in frontline roles said their manager is actively developing them for leadership, compared with 55% of men in the same age group. Perhaps as a result of this, women are significantly less likely than men to say they are excited about their future in their agency. Hiring and developing talent is a worthwhile investment no matter the future plans of the agency. Owners hold a wealth of industry knowledge – more than half of the agencies that plan to perpetuate in the next five years have had the current leadership in place for more than 20 years. Mentoring future generations and passing on that knowledge is a key part of supporting the future of not just the individual agency, but the independent insurance agency system as a whole.

Though it may be tempting for leaders to take their foot off the gas as they prepare to transition out of ownership, this may be detrimental for agency valuation. Investing in technology can help agencies keep costs low, attract new customers, and boost client retention. For owners who want to sell, these are important factors in maximizing the value of an agency and attracting potential buyers. For those planning to perpetuate internally, this will help ease the transition and set future leaders up for success. As more agency owners approach retirement age and fluctuating markets limit sales options, it’s more important than ever for independent insurance agency owners to think through what will happen to their agency when they no longer work there. It’s never too early for agency owners to start planning for agency perpetuation. A perpetuation plan can help protect the agency in an unexpected event, ease leadership transitions and set the agency up for future success. Methodology The 2023 Agent Growth Study surveyed 1,141 U.S.based independent agency principals, producers and CSRs, including 467 agency owners and principals. The research was conducted online by in-house Liberty Mutual Insurance research experts in late 2022. Go to https:// tinyurl.com/AgentForTheFuture for the full report. Agent for the Future is a free resource offered by Liberty Mutual, Safeco and State Auto Insurance to drive success and innovation in the entire independent agent channel. Find out more at agentforthefuture.com.

There is disconnect between how agencies plan to perpetuate and the reality of how people become agency owners.

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INSIGHT | associate news Thank you to our Associate Members.

Diamond Level

Platinum Level

Gold Level Arlington/Roe Blue Cross/Blue Shield of IL Keystone Insurance Group, Inc. Pekin Insurance

Progressive Surplus Line Association of Illinois

Silver Level Imperial PFS IMT Insurance SECURA Insurance West Bend Mutual Insurance Co.

Bronze Level A. J. Wayne & Associates AAA Insurance AMERISAFE AmTrust North America Auto-Owners Insurance Co. Badger Mutual Insurance Company Berkley Aspire Berkley Management Protection Berkley Small Business Solutions Berkshire Hathaway Guard Insurance Companies BluSky Restoration Contractors BriteCo Jewelry & Watch Insurance Central Illinois Mutual Insurance Company Chubb Columbia Insurance Group Continental Western Group Cornerstone National Insurance Company Cowbell Cyber Donald Gaddis Company, Inc. Donegal Insurance Group EMC Insurance Encova Insurance Erie Insurance Group Foremost Choice Property & Casualty Forreston Mutual Insurance Company Frankenmuth Insurance Grinnell Mutual Reinsurance Company IA Valuations Illinois Mine Subsidence Ins. Fund 28

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Illinois Public Risk Fund Indiana Farmers Insurance Insurance Program Managers Group J M Wilson Liberty Mutual/Safeco Insurance Madison Mutual Insurance Company Main Street America Insurance Maximum Independent Brokerage, LLC Mercury Insurance Group Method Workers Comp Midwest Insurance Company Nationwide NHRMA Mutual Workers’ Compensation Novatae Risk Group Previsor Insurance & Missouri Employers Mutual PuroClean Disaster Services Rhodian Group Rockford Mutual Insurance Company ServiceMaster DSI SERVPRO of Gurnee Society Insurance SPRISKA - Specialty Risk of America Steadily Travelers UFG Insurance Universal Property & Casualty Utica National Insurance Group W. A. Schickedanz Agency, Inc./Interstate Risk Placement Western National Insurance Westfield december 2023

associate news | INSIGHT Erik Gravelle Rejoins Pekin Life Insurance Company as New Vice President - Life Actuary

Pekin Life Insurance Company has announced the addition of Erik Gravelle as Vice President - Life Actuary. Erik brings more than 20 years of experience to the Pekin Insurance team, which includes a focus on Life Insurance actuarial functions and Life product development. He previously worked for Pekin Life Insurance Company as a Corporate Actuary before departing in 2013. Since his departure, he grew his career at Erie Family Life Insurance Company, serving as Vice President – Product Management and most recently, working as Vice President, Marketing Actuary for SCOR Global Life Americas. He has extensive industry knowledge and experience with product management. Erik attended Illinois Wesleyan University and graduated with a Bachelor of Arts in Mathematics and Secondary Education. He is a Fellow of the Society of Actuaries (FSA) and a Member of the American Academy of Actuaries (MAAA). In his new role at Pekin Life Insurance Company, Erik will primarily focus on product management, including new product development, within the Life Company and report to Jocelyn Duncan, Senior Vice President and Chief Operating Officer/Life and Senior Vice President/P&C. Life actuarial and regulatory compliance functions will report through Erik.

SECURA Insurance Promotes Two Company Leaders

SECURA Insurance promoted two company leaders: Kristin Heiges, Vice President–Marketing and Logan Jaklin, Vice President–Actuarial Services. “Kristin and Logan both bring valuable knowledge and new perspectives to our leadership team,” said Amy DeHart, SECURA Senior Vice President and Chief Actuary. “They embody the qualities we look for in great leaders at SECURA, and they will play important roles as our company continues to grow.” Kristin joined SECURA in 2010 as a marketing intern. She has held a variety of positions since then, including marketing communications specialist, digital marketing specialist, and director of marketing. Kristin earned her Bachelor of Arts degree in English from Lawrence University. Logan joined SECURA in 2013 as an actuarial analyst. He was promoted to a supervisor role in the Actuarial Department in 2017, and he became the director of actuarial services in 2020. Logan graduated from the University of Wisconsin – Eau Claire with a bachelor’s degree in actuarial science. He earned his Associate of the Casualty Actuarial Society in 2017 and his Fellowship of the Casualty Actuarial Society in 2021.

Thank you for your business and Happy New Year.

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Association Update November Wrap-Up

Staff Announcements Janet White

Janet has served the association as an E&O administrator since 1999. Her career in the industry includes roles at Standard Mutual Insurance Company and a local independent agency. In addition to her position in the E&O department, Janet has served as the unofficial fun officer, coordinating fun and off the wall team exercises like a staff outing to enjoy the best fried bologna sandwiches in town and the now-famous IIA of IL Pumkin Races. Janet will continue to serve the association in an on-call role to help out when Carol Wilson is out of the office. She plans to enjoy her retirement with family in Kentucky.

Tom Ross

Tom joined the association in 2015 as he transitioned out of his agency career to fill a void in the marketing position for Northern IL. Tom will formally retire from his role as IIA of IL Membership Director this December, but will stay on with IIA of IL in a consulting role in which he will continue to support our agency recruitment efforts in Northern IL. Throughout his agency career, Tom was actively involved with the DuPage Local Board and served the IIA of IL as a Regional Director, InsurPac Chair and as Secretary/Treasurer.

Lori Mahorney

Lori, who currently serves as Central and Southern IL Marketing Representative, has been promoted to Membership Director effective January 1, 2024. Lori has been supporting association members in her territory since 2015 and when the association’s pre-licensing program launched in 2019, she trained as an instructor. Lori’s background in the industry includes a role in provider relations with a health insurance company, serving as a marketing representative for a personal lines carrier, and working in an independent agency. As Director of Membership, she will oversee the association’s recruitment, retention, and member relations strategy for both agency and associate members.

1st Quarterly Board Meeting The IIA of IL Board of Directors met on November 14 for the first quarterly board meeting of the 2023-2024 association year. A significant amount of time was spent discussing the Hard Market, and what the association can do to continue supporting members during this challenging time. On November 15, all IIA of IL committee members were invited to attend meetings to discuss the goals for the coming year. During this time of collaboration, the committee set meaningful action plans that will be implemented in the near future.

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december 2023

GET INVOLVED!

Association seeks volunteers. At the association’s annual business meeting, held in conjunction with CONVO in October, the membership voted to change the dba from Independent Insurance Agents of Illinois to Big I Illinois, to better identify with the national association and several other state associations that have rebranded to use the Big I in their marketing. Additionally, the membership voted to move forward with a new board structure that relies less on “regions” in which an agency is located and allows more flexibility in order to ensure the board better represents the membership in terms of agency size, business mix, and personal qualifications of the potential volunteer. With that new model in mind, the association is issuing this year’s call for volunteers statewide. Any agent employed by an association member agency in good standing is eligible to serve on the Board of Directors. Committees and working groups often have positions in which Associate Members can serve. One of the best ways to get started if you are interested in volunteering is to join a committee. The following are standing committees set by the by-laws: Budget & Finance, Education, Government Relations, Technology, Young Agents, and Planning and Coordination. The Board of Directors will have up to seven seats open for terms beginning October 1, 2024. All candidates will be reviewed by the Leadership Development and Succession Planning Committee who will then submit formal nominations to the membership to begin the election process in Spring 2024. If you are interested in serving on a committee or in finding out more about serving on the Board of Directors, complete the form on our website at www.iiaofil.org/About-Us/GetInvolved or scan the code on this page. You will be contacted by a Committee Chair or Staff Liaison who will provide additional details and answer any questions you might have.

What is required of a board member? • Attend a Board Orientation in August • Prepare for and attend four board meetings • Stay informed about the association’s mission, policies, services and programs • Serve as ambassador for programs, attend events, and encourage others to get involved • Follow the legal and fiduciary principles of nonprofit board service

Board Members receive no compensation, but benefit from: • Expanding your network beyond your local community and gaining valuable industry contacts • Increasing your industry knowledge and gaining exposure to developing trends and products • Gaining respect and recognition from peers by representing a leading industry organization • Greater access to a dedicated team of professional staff at the association • An opportunity to contribute to your profession and take part in shaping the future of the association • CE Credit for Volunteer Service

Other Ways to Get Involved If you’re intrigued, but not ready to commit to a position on the board, join the association effort by: • Share your expertise by contributing content to Insight magazine or sharing your insights with other agents through a video or town hall meeting • Provide input to a Committee or Task Force • Support association legislative initiatives

Get Details Scan the code or go to iiaofil.org/About-Us/Get-Involved.

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INSIGHT | agency members in the news Two Illinois Member Agencies Receive NU Property & Casualty Magazine’s Annual Agency of the Year Award

Two Illinois member agencies have received the 2023 Agency of the Year Award given by NU Property & Casualty Magazine, sponsored by Nationwide. The awards honor independent insurance agencies in the United States that have been deemed “Best in Class” by a panel of our newsroom leaders because these organizations display a variety of attributes that make them champions. Congratulations to: Harris Insurance Group, LTD – Mount Carmel, IL Concklin Insurance Agency, Inc. – Lombard, IL To view more about the awards, visit www.propertycasualty360.com.

IIA of IL Member Receives Insurance Journal’s Best Agency to Work For The Bulow Group has the winning formula for happy employees.

In recent years, the agency won bronze, silver and gold awards as the Best Agency to Work For from Insurance Journal, and in 2023, they add another gold award to their accolades as a top agency in the Midwest. The awards are based on employee responses to IJ’s annual Best Agency survey, as well as certain other criteria such as working conditions and benefits. “I wanted to work somewhere where the owners were highly ethical, had fun in a workday with the employees, where my work was appreciated and meant something to someone,” wrote one nominating employee. “I wanted to work somewhere that I could be proud to represent. In this day of social divisiveness, it is a pleasure to work with staff carefully chosen to elevate comradery, efficiency, helping each other to learn and grow together in all aspects of daily work.”

Walter W. Schultz Celebrates Anniversary

The Walter W. Schultz Insurance Agency in Lansing, IL will celebrate the agency’s 101st anniversary in January.

Konen Insurance Agency Celebrates 60th Anniversary

Konen Insurance Agency, an independent insurance agency serving the Fox Valley area recently celebrated sixty years in business. Founded in 1963, the agency provides comprehensive insurance solutions with unparalleled dedication and expertise. Starting six decades ago by Vince Konen, Konen Insurance proudly offers its clients a comprehensive range of insurance solutions for individuals and businesses alike. From the beginning, the agency has built a strong reputation for providing reliable coverage, tailored advice, and outstanding client service. “What began as a small, dedicated team of professionals, has blossomed into a much larger version -- but with the same goal of serving and protecting our community, said Brian Konen, President. Over those 60 years, we have never thought of ourselves as selling insurance -- but providing our clients the peace of mind to protect from life’s uncertainties. We often talk about being the best thing to happen on peoples’ worst day. We’re excited to continue our mission to help our community, striving to innovate and adapt to their evolving needs.” “Our longevity is a testament to the wonderful relationships we have made with our clients and our insurance carrier partners,” says Konen. The 60th anniversary marks a time to reflect on the agency’s achievements and the relationships it has fostered with clients, partners, and the community. Konen Insurance Agency has consistently demonstrated its commitment to giving back by participating in various charitable initiatives and community engagement programs.

Creating a foundation of happy employees was in the agency’s DNA from day one, said founder and CEO Mike Bulow. He and his brother, Tom Bulow, started The Bulow Group 10 years ago. The company’s Tinley Park office, just 35 minutes south of Chicago, Illinois, employs 31 people. “We made a vow to each other that we’re going to be the best place to work in insurance,” said Mike Bulow. “And so basically every day, our number one goal when we walk through the doors is to fight for our people and make sure that they’re happy, they do a good job, and we provide them a great life for themselves and their family. View more information on what makes The Bulow Group a great place to work at www.insurancejournal.com/research/ research/best-agencies-to-work-for-2023. From left: Vice President Nick Knudtson, President Brian Konen, and Chairman Jerry Knudtson

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december 2023

iia of il news | INSIGHT

December 12-13 Virtual Class

16 hours of IL CE credit CE Available in other States, contact IIA of IL for details Topics include Property Coverage Traps & Dilemmas, Ancillary Property Coverages and Catastrophic Loss, Commercial Property Coverage and Valuation Challenges, and more!

iiaofil.org/education

New Members member agency Al Haut Agency, Inc./Haut Insurance Services Libertyville, IL Azteca Inswurance Agency Cicero, IL Brumfield Insurance Naperville, IL DuKane Financial Services, Inc. Geneva, IL Olson Insurance Group Oak Forest, IL

bronze associate member Berkley Aspire Scottsdale, AZ

copper associate member CP Insurance Plano, TX For information regarding IIA of IL membership or company sponsorship, contact Tom Ross, Director of Membership Services, at (217) 321-3003, tross@iiaofil.org.

Sage City Insurance Group, LLC Monticello, IL The Buckler Agency, LLC Herrin, IL The McBride Agency Dixon, IL december 2023

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INSIGHT

| classifieds

for the insurance professional by the insurance professional

INDEPENDENT INSURANCE AGENCIES WANTED

17. We are an Independent family-owned agency located in the Chicago area. We are looking to expand through growth and acquisition. If you have a small to medium sized agency and are looking to sell, call or send us a message. We are strictly looking for Personal Lines and Small Commercial accounts with preferred companies.

GALO Insurance Agency, Inc (847) 832-0888 steve@galoagency.com

AGENCY OR BOOK OF BUSINESS FOR SALE

34. Small established agency in southern Illinois for sale. Can be sold as just the book of business or the physical location. The book of business includes personal and commercial P&C as well as individual and group medical. The physical location includes the building as well as furniture.

For details, contact Tami Hubbell at the IIA of IL: thubbell@iiaofil.org or (217) 321-3016 and reference blind ad #34.

AGENCY WANTED

20. Since 2004, Central Illinois Agents Group LLC has been providing independent agents with a variety of markets with contingency opportunities. Agents have availability to several markets that they may not be able to sustain or maintain on their own. We have markets for personal, commercial, agricultural and crop insurance lines. Let us help you get to the next level.

Visit www.ciagonline.com for contact information.

The next step in your

insurance career is a few clicks away.

INDUSTRY JOB BOARD LISTING

LOOKING FOR AN EXIT STRATEGY?

23. Are you looking for an exit strategy while still continuing to produce for a few years or are you ready to sell now? Paczolt Insurance would like to talk with you! We are an independent agency dating back to the 1970s that is located in the western suburbs. Our focus is on mid-to-small commercial accounts and personal lines. Our companies include EMC, Badger Mutual, Safeco, Progressive, and Travelers. We have the flexibility and capital to get a deal done. Contact:

Susan Troppito Paczolt Insurance susan@piaigroup.com (708) 215-5202

AGENCY/AGENTS/PRODUCERS WANTED

02. Forest Park/Oak Park agency for over 60 years, will meet your needs by providing space, markets, marketing & sales support, automation, merging with or purchasing your agency. Perpetuation/ Succession Plans, BuySell Agreements also available. We have experienced, educated and dedicated staff for you and your clients. Have access to our numerous companies, office services and many other resources. Retain ownership in your book with contingency. Please look closely at us- we are an agency you want to do business with! We’ve done it before, we know how- we make it easy! Visit our website at forestagency.com/agents.html, or call for a confidential discussion and a list of Agency benefits. Dan Browne will provide an agency evaluation/appraisal at little cost to you. Please call:

Dan Browne or Cathy Hall Forest Insurance (708) 383-9000 www.forestinsured.com/mergers-acquisitions

OPPORTUNITIES/SPACE AVAILABLE/RETAIN OWNERSHIP

13. We are a 100 year old Northbrook agency looking to discuss any mutually beneficial opportunity. Our producers, mergers, clusters and agency purchases receive 50% commissions on new and renewal business without any expenses. We can provide: office space, phones, agency management system, service renewals and changes. The companies we represent are: Badger Mutual, Employers Mutual, General Casualty, Guide One, Hartford, Kemper, Progressive, Rockford Mutual, Safeco, State Auto, Travelers and Met Life. Contact:

Nancy Solomon Martini, Miller & Schloss, Inc. (847) 291-1313 Ron@martini-miller.com

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insight

december 2023

AMERISAFE HAS A NEW

MINIMUM PREMIUM OF $5,000 When you only do one thing, you better do it well and workers’ comp is all we’ve ever done for over 30 years.

WORKERS’ COMP IS ALL WE DO.

MORE IMAGINATION.

MORE TO LOVE FROM APPLIED.® Workers’ Compensation • Transportation – Liability & Physical Damage • Construction Liability • Fine Art & Collections Homeowners – Including California Wildfire & Gulf Region Hurricane • Structured Insurance • Financial Lines • Surety Aviation & Space • Environmental & Pollution Liability • Real Estate • Reinsurance • Warranty & Contractual Liability Infrastructure • Entertainment & Sports

...And More To Come.

It Pays To Get A Quote From Applied.® Learn more at auw.com/MoreToLove or call sales (877) 234-4450 ©2023 Applied Underwriters, Inc. Rated A- (Excellent) by AM Best. Insurance plans protected U.S. Patent No. 7,908,157.