• BANK/TASC Spring 2016     



BANK & TASC Partners: 

The holiday daze has receded, the 2016 sales year has begun, and the first quarter will be over before you know it. I hope your new business pipelines are full because a number of things are going to impact your top line this year and you have no control over it. 

Our 2015 year-end growth estimates put the industry up between 6-7%, dropping slightly from 2014 due to rate and economic impact on renewal business. We expect 2016 to provide the agent and broker space with continued growth, but at a slower pace than in years past. The last 5 years have been intoxicating for this industry. Those owners that have decided to monetize the value of their business or at least take a few chips off the table have experienced fantastic rewards. Even those that have not sold are in an extended period of warmth, primarily driven from an extended period of manageable renewals, economic improvement and adequate retention. When will the party end? I don’t think anyone knows, but with a tremendously important election looming, critical workloads pending for ACA compliance, and the never-ending discussion on technology disruption on all lines of insurance distribution, the words “tempered optimism” set the tone for 2016. 

What does this mean for the largest brokers in the country? 

Growth becomes more challenging. 

A 1% increase in leakage negatively impacts our average BANK/TASC member by at least $250,000 total commission and fees. Think about that. An additional $250,000 of new business needs to be produced to offset a 1% change in your residual. 

As you prepare for the next five years, use the 1% mantra to rally the organization around continual improvement, new business production, execution, and the power of exponential performance in a recurring revenue business. The growth economics of this business are powerful. 

In Dallas, the most valuable, engaging collaboration will take place in the Strategic Issues Group. MarshBerry will be providing general session updates on the marketplace, economic fundamentals that impact your business, and best practices strategic initiatives to help you reach your potential and create value. John Wepler, CEO from MarshBerry will challenge the Industry’s Best of the Best Leadership on key strategies needed to grow your business. Nick Kormos, who leads our organic growth practice, will also address the audience with valuable details on what the best firms in the industry are doing to create organic growth in this firms. 

We look forward to seeing you in Dallas!!