By Mike Stroman Over the past year, we’ve seen increases in interest rates by the Federal Reserve, but the increases have been small and implemented gradually. So, is this really an issue in insurance agency valuations? The answer is a resounding “YES!” There are three main effects this rise in interest rates has on agency valuations and the overall agency acquisition market: Higher interest rates take some buyers out of the market. There are two reason for this. First, lenders are not as loose on lending standards in an environment in which interest rates are increasing. And . . .
by Mike Stroman Twenty years ago, that answer would have been an agency that provides both Employee Benefits and Property & Casualty coverages. This all-encompassing business model keeps out the competition. Unfortunately, that’s where most agencies stopped innovating. They’re stuck in the past. Today’s world of client Risk Management is more complex, and more thoroughly litigated than ever before. Businesses expend significant chunks of management and administrative time just trying to meet Payroll, Human Resource, and Compliance requirements. This is time needlessly wasted, and risky to boot. This has also provided unprecedented . . .