In case it has slipped your notice, we are in one of the worst economic situations in the last 75 years. In addition to that, the weather in the central part of the U.S. has been terrible for three straight years. To make matters worse, the weather in the eastern 2/3’s of the U.S. has been historically bad for at least 5 years!
The reaction of insurance companies, with whom we work, has been understandable. They’ve pulled their horns in, cut agents off, raised prices, etc. Fortunately, for us at OAA, we are much less affected due to our size and relative strength as most carriers’ largest producer.
What’s amusing to me, though, is the reaction of many insurance agents. I hear a lot of concern because premiums are rising, carriers are restricting some agencies’ writings, carriers are tightening underwriting, carriers are cutting commissions, etc. Well, sure, these things do make life interesting and challenging.
But they also create enormous opportunity!
In the first place, even with some commission cuts, commissions are way up because of rate increases. Secondly, agents with quality books of business and adequate volume (never a concern for OAA members as we always have tremendous volume with every carrier we work with) are making even more profit sharing than ever. But most of all, rate increases and economic uncertainty have put huge amounts of business on the streets as customers try to control costs.
Did you know that more people became millionaires, per capita, than at any other time in history during the Great Depression? Tough times are when the successful shine. Real entrepreneurs find a way!
The glass is definitely half full! OAA is full of people who see the glass as half full, and who are growing insurance agencies every day. We’re looking for a bigger glass! That’s why we have been, and continue to be, the fastest growing insurance production organization in our part of the world. If your glass is half full I’d love to hear from you.