Why Most Insurance Agencies Are Stuck

So several years ago, I was having a conversation with an insurance agency owner and we were talking about goals and where, you know, I asked the question is, where do you want to see your agency in the next five years? And what I heard, honestly, shocked me. Yet as I talk to more and more insurance leaders, I hear this type of response all too often. I'm going to share this response and also tell you two reasons why I believe most insurance agencies are stuck on today's Biz Growl podcast. Hey there, Brent Kelly of Biz Griz. Welcome to another daily Biz Growl podcast. And as I said on the open, I asked a question to the agency owner of where they saw their. Their agency in the next five years, and the answer shocked me. So here was the response that I received. He said, in today's competitive climate, we really just want to maintain the status qu. You know, we really would like to grow, but if we can just keep what we have now, if we can just maintain, boy, that would be great. I didn't say this out loud, but under my breath, I thought, really status quo. And while I did understand, you know, kind of in what he was trying to tell me, I knew the truth. And here's the truth. There is no status quo. You're either growing or you are dying, period. There's no maintenance plan in insurance or any business for that matter. Now, I believe this has never been more true in today's insurance landscape, because insurance agencies in particular are either gobbling up other agencies, right? The large ones out there gobbling up others, or they are the ones being eaten. Now, that may seem a little bit harsh, but it's true. So why are so many insurance agencies stuck or paralyzed in fear? And I think there are two reasons that come to the surface, right? There's more than just two, but I think two reasons. What I found in my experience in working in the industry and now working with agencies as a facilitator and a speaker and a coach, I see this over and over again. Two main reasons. Number one, complacency. Yes, the C word. One of my most hated words, complacency. And number two, they haven't developed leaders. Now, the first reason, complacency is often the result of simply thinking that the things that got you here will be the same things that will keep you here, right? And if you think that is true, go find someone who used to work at Kodak or BlackBerry or maybe any taxi company in America or the world, right? When you lose innovation and you start taking things for granted, you become Complacent. Complacency gets you stuck. See it all the time. And if you want to take it a step further and this is happening, complacency puts you out of business. Now, the second reason is often a result or a cause into the effect of complacency. For years, many insurance agencies have built their business model with one or two leaders and multiple followers, right? A lot of small MA and PA shop agencies, right? And they've been successful for years. That may work for a while. But what happens when the leader wants to retire like they're doing now? Or maybe the leader gets sick, or maybe the leader just gets bored and loses their passion. What happens? The agency is stuck. They're stuck trying to find people. They're stuck trying to keep people. They're stuck trying to even want more people. Why would I want to go through this headache of these people thing, right? Here's the bottom line. You've got to learn to develop your people. Now here's the thing about developing your people, which is AKA leadership. People are challenging. Developing people is really hard work. You must put the work into growing your people up front to avoid the pain, losing them and your clients on the back end. And that's the situation, right? If you don't develop your people, your people will leave or become disinterested and your agency is stuck. Here's a truth that I have understood. Growing agencies. The growing agencies grow more leaders. Stuck agencies are busy trying to grow more followers. My mentor, leadership expert John Maxwell, teaches in the law of the lid, a great law in his 21 irrefutable laws book. Your effectiveness will never surpass your leadership ability. Your effectiveness will never surpass your leadership ability. Here's the example. If your leadership skills are a 4 out of 10, right? Just for instance, if out of 10, your leadership skills and being a leader is only about a 4, maybe you're an 8 or 9 as a tactical insurance producer, maybe you're 8 or 9 as far as accounting or whatever your technical skill is. But out of leadership, you are a four out of ten. Your agency will never rise above a four. Why? Because sevens and eights and nines, they don't follow fours, they leave. You've got to develop people. You've got to develop yourself first. Now, leadership ability is a skill that you can learn and develop. It's not too late, right? I don't care if you're 30, 40, 50, or 60 years old, you can develop your leadership skills. So let me ask you an important question. Are you willing to put the work in? Are you willing to put the work in? Are you ready to learn what true leadership is all about? Because there is no status quo. And I truly believe that everything, everything rises and falls on leadership. Everything. And here's why I say this. I don't say this to point my finger at anyone's chest or be condescending or any of that. I don't. I love and I'm passionate about the insurance industry and I want in particular independent insurance agencies to succeed because I spent a bulk of my career in independent insurance agencies. But the insurance industry needs strong leadership. Those willing to grow themselves and develop their team so that they can can grow their business. Avoid complacency. Develop your people. This is Brent Kelly of Biz Grizz with another daily Biz Growl podcast. Hey, thanks for listening. Again, this is Brent Kelly of Biz Grizz. And if you want to learn more about me and my programs and my services, whether it's the Leadership Catalyst program that I have on site for for teams or whether it's one on one coaching or speaking services that I offer, go to brentmkelly.com that's Bren timkelley.com I would love to connect with you there. Again, this is Brent Kelly at Biz Grizz and until next time, go face your grizzly.