Is Your Agency About to be Acquired? What You Should Know
When it comes to mergers and acquisitions, often the first thought that comes to an agent’s mind is “Am I going to be laid off?” This is an understandable concern, especially with the multitude of mergers and acquisitions that have occurred in the industry in recent years. As we discussed last month though, insurance industry consolidation is not always a bad thing; oftentimes the motive behind an acquisition is to obtain agents for their skills and expertise. In our continued effort to bring you necessary resources as a trusted Insurance Agent Resource, we’ve summarized what to expect when your agency is about to be acquired below, gathered by multiple business owners.
First off, it’s important to remember that you know your agency best, so you can best assess whether there is something different and/or unexplained going on. Often times the announcement of an acquisition will come as a complete surprise to everyone in the agency; but an acquisition does not have to be a hostile action; in fact an acquisition of your agency could bring a multitude of new opportunities, such as the chance to advance in your career. So what can you do to protect, if not secure, your position at your agency if an acquisition happens? While there is no 100% fool-proof way to do this, below is a list of tips gathered from sources from Forbes.com.
Do Some Research. Just as you would research an agency you were interviewing for, research the leaders who will be acquiring your agency. What processes do they use, and how is this different from how they were previously run? What are their priorities and strategies? Network with professional associations, business partners, customers, etc. to get a better idea of what to expect.
Don’t Assume the New Agency isn’t Invested in Your Success. As we mentioned earlier in this post as well as in our previous posts regarding the matter, larger agencies may acquire smaller counterparts for their existing employees’ skills and expertise. Do everything in your power to ensure a smooth transition while still keeping your own career options open.
Embrace the Change. Naturally, when an acquisition occurs, company dynamics will change. The style, rules, and even the company culture could have a dramatic upheaval that you weren’t expecting. There will be new priorities as well as new policies and personnel.
These are just a few ways you can work to protect your position at your insurance agency, should an acquisition occur. Insurance professionals also recommend learning everything you can about your agency’s plan moving forward with a merger or acquisition. Of course, there will only be so much data available to you given the legal restrictions that will exist, however the more knowledgeable you are about the situation, the more prepared you can be.
In addition to bringing you the latest news and relevant information from the insurance industry, PLRisk Advisors provides Resources for Agents and Brokers nationwide. We’ve recently implemented Hiscox Now, which allows agents their own access to Hiscox and instant quoting. PLRisk Advisors is a leading wholesale insurance brokerage covering the professional liability market. For more information about our products and services, please contact us today at (855) 403-5982.