The insurance industry’s domination by baby boomers is coming to an end, yet almost 70% of brokerages do not have an active succession plan in place. Are you part of that statistic? If so, you may want to start planning your legacy.
Welcoming the New Generation of Insurance Professionals
We are in an interesting transition time when older, experienced brokers can both teach younger people the business, but also learn from them how to integrate ideas and technology for a younger customer base.
As expectations change from generation to generation, approaches to doing business with younger people, both as customers and employees, may need to adapt with the times. Integrating younger workers along with seasoned professionals into your team could be a useful strategy for your succession plan, and prepare your brokerage for success in the future.
When to Start Planning?
If you see yourself retiring in ten years or less, it’s not too early to plan your exit strategy using one of these two game plans:
- External succession – when a brokers book of business is sold to an outside, already-identified business at the time of the owner’s death or retirement.
- Internal succession – when an owner has established clear lines of succession with an internal candidate at the brokerage.
If you choose internal succession, then give yourself time to build a strong bench. Bench strength, a term borrowed from baseball, refers to the “…capabilities and readiness of potential successors to key professional and leadership positions.” Part of the benefit of internal succession planning is increased employee engagement and retention when your top performers know there is a pipeline to leadership positions.
A well thought-out succession plan can eliminate chaos and confusion as to the fate of your business if something should happen to you, and can provide peace of mind to your employees that they have a future with your brokerage.
Looking for more information? Follow these links for additional resources about succession planning.