MarshBerry Connect, MarshBerry’s Executive peer-to-peer exchange leadership solution, just wrapped up its three-day Connect Summit in Chicago, Illinois.
Over 320 individuals representing member firms, guest firms, and MarshBerry advisors attended the event, which featured peer-to-peer collaboration, keynote and state-of-the-industry presentations, networking, and more. A major theme from this summit was clear: in an industry perpetually in flux, every firm must act fast to carve its path, cultivate predictable and profitable organic growth, and improve its performance – or risk being left behind.
Carve A Path
MarshBerry’s Chairman and CEO John Wepler delivered an insightful session on the current state of the insurance brokerage industry, highlighting the key trends, challenges, and transformative forces at play in 2024. He addressed critical issues like ownership perpetuation and offered valuable guidance on navigating succession planning to ensure leadership continuity. This session offered a clear roadmap for driving change and the strategies essential for thriving in today’s dynamic market. Here are some key takeaways from the discussion:
- Many insurance brokers have been living in utopia for several years – where outsized financial performance has been enhanced by prolonged exposure base growth, hardening rates and unprecedented capital market support. But what if these conditions changed?
- While the average firm boasts a 10.5% organic growth rate, 7.8% of this is from exposure base growth and rate growth, and 2.7% is the real organic growth rate.1
- Be prepared if conditions shift and there is no bail out by a hard rate environment concurrent with an economic and inflation induced exposure base runup.
- 2025 could see greater M&A activity, given projections for both higher demand and higher supply.
- An effective perpetuation strategy is required for firms that want to remain independent. Some strategies include:
- Make the same changes a buyer would require in a sale.
- Broaden ownership over time to avoid having too much ownership in the hands of too few owners.
- Reinvest consistently in a high performing next generation to ensure an internal market of buyers.
Drive Sales Velocity
Driving Sales Velocity through Innovation was the key focus of the Connect Live! sessions. Given that the average insurance brokerage firm’s organic growth has been boosted by hard market conditions, exposure base growth, and strong capital market support, improving sales velocity is a way for firms to better their quality of growth (QoG). Industry leaders, including Nationwide’s Chief Innovation and Digital Officer Chetan Kandhari, explored how technology, including AI and strategic partnerships, is reshaping the insurance landscape and empowering agencies to enhance customer experiences and efficiencies. Here are insights from the conversations:
- MarshBerry’s Senior Vice President – Analytics & Research, Josh Gibbons, spoke about navigating AI for insurance brokers. One of the biggest challenges firms currently face around adopting new artificial intelligence tools and technologies is implementation, according to MarshBerry’s survey of Connect members. Cost is another large factor.
- While 62% of firms have already invested in AI technology, much of the adoption is used for augmenting existing capabilities. For example, Nationwide is leveraging AI to provide a better customer experience for partners and members.
- Key steps to get started with implementing AI.
- Consider working with a strategic partner for technology initiatives.
- FirstChoice, a MarshBerry Company, is continuously vetting different technologies and validating potential strategic partners.
- FirstChoice, a MarshBerry Company, has 21 strategic partners today, with discounts, new features in varied verticals that are available to Connect members.
Realize your Future
Keynote Speaker Phil Hansen delivered a truly inspiring keynote, sharing his journey from overcoming a debilitating tremor in his drawing hand to discovering new ways to channel his creativity as an artist. By embracing his limitations, Phil demonstrated how challenges can spark innovation and transform obstacles into opportunities. These strategies not only redefine what’s possible but also provide a blueprint for realizing your future. Here are more details from that conversation:
- Phil Hansen learned to take advantage of his limitations, shed limiting beliefs, leading to greater creativity and success professionally and personally.
- Phil’s artwork involving “intentional limitations,” such as painting with only karate chops, and art inspired by the concept of destruction, the opposite of his inclination to hold on to physical things, led to his work going viral.
- Finding a creative buddy can help boost creative thinking and problem solving:
- A creative buddy is ideally a good listener who is curiously supportive while providing a light amount of critique. They can help with challenges in your life. A good creative buddy is open, not judgmental, and open to exploration.
- With a creative buddy, you can talk through different possibilities, have more explorative discussions, to help generate innovative ideas and solutions.
- Limitations vs. self-limiting beliefs: A self-limiting belief is something we put in our own way and can also remove. Phil believes that every challenge includes both a limitation and a self-limiting belief.
Taking time away from being “in” the business, to work “on” the business can offer a fresh perspective and challenge you to new heights. Empowered by the unity and knowledge of their peers, insurance executives work diligently to chart their path, cultivate growth and realize their future.
Sources:
1Source: MarshBerry proprietary financial management system Perspectives for High Performance (PHP). Last Twelve Months ending 6/30/2024.
