By Matt Masiello, Eric Blew, and Tony Caldwell
Link to entire e-book just released to SIAA members and available for free to all independent agencies: https://covidproofyouragency.com/wp-content/uploads/2020/04/COVID-Proof-Your-Agency-FINAL.pdf
Sample from the e-book. Click on the link above to get the full 50 page e-book and all the linked resources.
“Chapter One – Introduction and Background At the time we are writing this book, the COVID-19 pandemic has disrupted huge swaths of the economy throughout the United States and the entire world. Not since World War II has there been this kind of universal impact. Right now, every business, every person, every man, woman and child, every segment of our society, every segment of the business community is being impacted by the coronavirus. No one knows how long this pandemic will last, or how bad it will be in human or economic terms, but it is clear that it is, and will be, a serious economic problem lasting months and perhaps years. While there will be economic retrenchment there will also be a recovery eventually. Some speculate that the recovery will be quick and immediate looking like a “V” on a graph. Others speculate it will look more like a “U” with a long period of relatively low recovery before an upswing. Still others think it may look like a “check mark”, where it’s a slow and gradual recovery that lasts one, two or even three years. During the crisis, and especially as our economy recovers from it, we believe there will be enormous opportunities for insurance agency entrepreneurs who are ready and positioned to take advantage. There are also challenges and threats to be met. Chapter 1 – Introduction and Background | Blew, Caldwell, Masiello 2 Today, many businesses have gone out of business, virtually overnight. This includes restaurants, hospitality, retail, wholesale and some manufacturing businesses. Even those businesses who remain active are impacted in some way including transportation, airlines, construction and even service businesses like doctor’s offices, consultants and others including insurance agencies. The long-term prospects for many of these businesses is less than certain. The insurance industry in the United States, fortunately, is in a very strong position financially, with a large surplus and strong balance sheets. Our industry is well positioned to be able to weather this economic calamity in good shape and be there to pay claims and serve policyholders. The insurance agency business is experiencing operational disruptions. But for now, income is flowing normally. In fact, right now as the virus pandemic in the United States begins to wreak serious destruction, insurance agencies are receiving annual profit-sharing payments bolstering their cash position. The income disruptions in the insurance agency business will come later this year and into 2021, as policies cancel, premium audits result in commission reversals, and renewals with lower premiums result in lower commissions. No one knows how long the disruption period will last, how long the recovery period will take, and whether there will be additional waves of disruption in the coming months. Though we don’t know when, we do know it will end. The nation needs insurance and insurance agents now and they will as we go forward. So, with our present and our future more secure than most industries we need to turn our attention to taking advantage of opportunities to serve our clients and grow our businesses.”