Introduction to Strategic Insurance Business Planning

Does sitting down to work on strategic insurance business planning excite you or drive your anxiety through the roof? The truth is, strategic planning is important not just for the business owner, but for the whole agency and team.

Any business book will talk about the importance of setting goals, having a plan, and communicating that plan. So why do so few agencies embark in creating an annual strategic plan? In this blog, we’ll explore this and more, giving you the clarity you need to start planning for your agency’s world domination!

5 Reasons Your Agency Should Be Involved in Strategic Insurance Business Planning

If you think creating a strategic plan is a waste of time, something you may not be good at, or something that will trap you in a plan you won’t achieve, I always ask one question: Have you ever created and executed a plan, or are you just judging it?

Let’s dive into the top 5 reasons you need to start strategic insurance business planning.

Managing Insurance Agency Resources

Your agency’s most valuable resource is time, and the biggest expense is payroll. Many agency owners keep adding tasks or avoid changes because everyone seems so busy. By creating a strategic plan, you can prioritize the most important tasks, plan effectively to complete projects, and inform your team about the yearly plan. Most team members in an agency are part of the service team, and they usually prefer to understand the plan.

When you share the yearly initiatives, they are better prepared for upcoming tasks.

Clearly Identifying and Solving Agency Challenges

Every agency and business faces challenges. Some are minor, while others are severe. These challenges can hinder progress. Issues might include training, having the right people, culture problems, or finding producers.

To grow, you need to identify all challenges, both big and small, and actively work to resolve them for your agency and team.

Building Insurance Agency Leaders

Strategic insurance business planning doesn’t have to be done alone. When you create a plan, you can assign special projects to your team. This helps build their leadership skills, shows their value, and still gets things done. There’s a misconception that everyone is too busy, but many people are looking for opportunities to grow and develop.

Without a plan, you miss the chance to grow your team and may lose key members.

Managing by Metrics

Too many agencies chase feelings. But there are facts and there are feelings. When you manage my metrics – which are in a strategic plan! You can find what to celebrate, work on, and develop. The numbers tell you where to focus. Otherwise, you’ll get whiplash trying to make everyone happy, which is impossible. I’ve been happy in the morning and totally frustrated by the afternoon.

Strategic planning forces you to report and use more than just your P&L to guide the agency’s success. One note: If you’re frustrated with agency metrics, you’re not alone. However, maybe the first step of your strategic plan is to work on understanding your systems, how they report, and start working toward getting accuracy in your metrics.

Celebrate Your Success

Sometimes running an agency feels more like being a firefighter than an insurance professional. You’re often fixing, fighting, or figuring things out, working in the business rather than on it.

Despite this, many good things happen every day in your agency, but we often miss them because we’re focused on the problems. Do you know your best sales month for the year? Or when someone stepped out of their comfort zone to start cross-selling? Or that a team member saved an account? You might not unless you have a plan and are tracking all the agency metrics.

When agencies have culture problems, it’s usually because there’s no plan. Every day feels like Groundhog Day, with the same fights, the same complaints, and everyone’s energy running low. A strategic plan can help you celebrate the team’s wins!

Have we convinced you yet? Let’s talk next about how to get started with strategic insurance business planning.

Getting Started With Insurance Business Strategic Planning

I know for me, when I sit down and think about my business (agencyperformancepartners.com), my head kind of spins around. You have to think about sales, marketing, accounting, service, departments… then I need a drink!

However, I have learned several tips, hacks, and tips to help anyone get started with strategic insurance business planning, and I’d love to share them with you to encourage you along the way.

Your First One Will Be Your Worst One

Motivating, right? Yes, your first time doing strategic planning for your insurance business will be the hardest! So let’s get it over with quickly! This is true for anything you do. Was your first insurance quote your best? Probably not. Each year it gets easier, better, and more enjoyable. Remember, you’re new to strategic insurance business planning.

But the question you must ask is: Is something better than nothing? And the answer is yes, it is!

Bring a Friend Along for the Experience

Doing something new with a friend is always better. Plus, who couldn’t use an accountability partner now and then? We suggest making strategic insurance business planning a team effort.

Grab an extra planner for a friend, and throughout the year, you can keep each other on track. If you’re part of a network, mastermind group, or team, why not see if everyone wants to join in? Working together helps you achieve more, faster.

Where To Start Your Plan

For me, I need to be away from home or the office to really think about the business, the industry, and my own needs and goals. We usually go away for Thanksgiving, and I take that time to disconnect from the business (mainly because everyone is busy eating turkey!).

I generally start this process in October by gathering team feedback, which gives me time to digest everything. By then, I have 11 months of numbers to review, so I have most of the details I need to think clearly. As a self-diagnosed workaholic, I need time to plan how I want the business to serve me.

I recommend finding a place where you can do your best work. For me, it’s a quiet hotel room with no distractions. You might prefer a weekend retreat, a day in a hotel room, or your home. Just find the right place to start.

What You Want

Did you know that part of strategic insurance business planning is figuring out what you want too? As the owner, you can decide how the agency serves you. There will be times when you might invest a lot of time to grow, and other times when you want to spend more time with family or focus on building and empowering your team.

A wise person once told me something I believe is very true: It’s actually really hard to know what you want. To get clear on what you want, not what your team, carriers, or others want, you may need to spend some time reflecting.

Have a Deadline To Complete Your Plan

Strategic insurance business planning may seem like a luxury some days, or you may not feel like diving in if you’re mentally exhausted. However, setting a deadline will keep you on track and prevent you from having a half-finished plan and being unprepared for the next year.

You can start with small milestones or set a big deadline. We all work differently, but having a goal will definitely help!

Getting Your Strategic Planning Guide

If you are like me, starring at a blank word doc to create a plan is overwhelming. I don’t know where to start, what to do, or how to make it right. The good news is, you do not have to! That’s right, we have an Insurance Strategic Planning Workbook you can purchase.

Let us take you on a guided tour of where to start, what information to gather, and how to roll out your plan to your team. Don’t recreate the wheel, you can pick up our strategic planning workbook and get started.

We also have video guides and resources to help you. Don’t delay, check it out.

Asking for Help

Asking for help is not a weakness, it’s a strength! Your first strategic plan can be overwhelming. Why not get a coach or another business leader to help mentor and guide you. You may need help running reports or understanding your finances, (I did!) and it was nice to not have to guess if I was on track.

So instead of battling it out by yourself, seek out a buddy or a mentor to help you in your journey.

Soliciting Team Feedback

One step we recommend (and actually do ourselves) is getting feedback from our team. I like to say when I get a pumpkin in October, it’s time to engage your team in reflecting on the year and what is next.

Owners have blind spots, you aren’t always in the know. By asking your team to complete a survey or end-of-year planning form, you can aggregate the data and feedback as well as connect with your team on these answers. You need a 360 view of the agency to be successful at strategic planning.

What Should Be in Your Insurance Agency Strategic Plan?

Hopefully by now we have sold you – you need an insurance strategic plan! So, you may be wondering, what exactly goes into the plan?

Identifying Where You Are Today

Start by assessing where you are today. Are you on track or off track? What do you like, and what needs fixing? The goal is to start by really getting grounded in where you are so you can identify your plan.

Reporting

It is critical that you take the time to understand your agency’s financial and agency management reports. We have a list we recommend in our strategic planning workbook. However, you may need to understand how your reports work, if they are accurate, and how to get them on track.

Please don’t give up on this part – while it’s hard, it’s not impossible, and next year you will be so grateful.

Team Feedback

Getting feedback from your team helps you address any gaps. Insurance is still about people, and their challenges are yours to solve. When you get feedback, read it twice: the first time to get past any drama, and the second time to see the positive points and areas for improvement.

Remember, you can’t act on everything, so focus on gathering and prioritizing the feedback.

Plan for the Next Year

Now that you have the data, you can start your plan. Here are a few items we think you should consider:

Define Success: What would make you thrilled by the end of next year?
Set 3 Objectives: What are three big projects you need to accomplish?
Celebrate: How will you celebrate when you hit your target?
Resources: What do you need to achieve your goals?
Roadblocks: What challenges might you face?
Ideal Client: Who is your perfect client?
Job Description: What will your role look like next year?
Organizational Chart: Who might you need to hire or replace?
Processes: What needs to be built or reviewed?
Tracking: What reports do you need to review?
Vision and Values: Are they on track?
Unbreakable Rules: What rules do you need to have next year?
Contingency Plan: What will you do if you get off track? (Planning ahead helps!)

Setting Goals

With your plan ready, you can set your goals. These can vary for each agency! We suggest your agency at least has goals for new business, retention, and growth. You can also break these down by department, team member, or even specifics like cross-selling!

Conclusion About Insurance Business Planning

Starting strategic insurance business planning might seem overwhelming at first, but the benefits are worth the initial effort. By creating a strategic plan, you’re setting your agency up for success and providing a roadmap for your team to achieve your goals. The planning process is just as important as the plan itself, as it helps you think critically about your agency’s current status, challenges, and future opportunities.

As you put your strategic plan into action, you’ll see changes in how your agency operates. Prioritizing tasks, managing resources efficiently, and fostering a culture of accountability and celebration will become natural. Your first plan might not be perfect, but it’s a starting point that will improve with each update. Involving your team, setting clear objectives, and measuring progress with metrics will help you stay on track and make adjustments as needed.

Don’t forget to celebrate your successes along the way. Recognizing your team’s hard work and achievements boosts morale and creates a positive work environment. So, are you ready to start planning for your agency’s world domination? With the right tools, mindset, and support, you can confidently navigate the strategic planning process and lead your agency to new heights.

For those ready to dive deeper, our Insurance Strategic Planning Workbook and video guides are available for extra support and guidance. And remember, asking for help is a strength, not a weakness. Engage a coach or mentor if needed, and lean on your network for support. Happy planning!

👉 Dive into our latest blog and unlock the secrets of 🚀 Build Your Agency Strategic Plan: Insurance Business Planning Examples.

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