From Agent/Broker to Risk Advisor – Your Success in 2016
As the year rolls to a close, transitioning from a transactional insurance agent or broker to a risk advisor is an excellent career move. Why now? Downstream demand from small and mid-size businesses for outsourced risk management services is expanding exponentially as businesses try to minimize in-house costs and focus on growing their firms.
According to a new research study by IBISWorld, business demand for risk advisory and management services skyrocketed by an amazing 24.2% in 2010 and has continued to grow since then. The demand is projected to expand even further for the next five years.
What’s driving this demand? In a Risk Barometer study, almost 50% of senior executives within Fortune 500 companies said they lacked confidence in their organizations’ ability to properly identify and manage risks. Mid-size and small businesses exhibited even less confidence in their in-house risk management capabilities.
The study shows that business leaders across America are realizing that running a business can be a “dangerous” path – littered with many different types of risk. They understand that some potential hazards will destroy their business, while others will cause serious damage that can be expensive and time-consuming to resolve.
These business leaders are recognizing the essential need for a risk advisor who can help them identify, prepare for, and manage risk. There is a growing consensus that if and when the risk becomes reality, a well-prepared organization can moderate and/or withstand a risk’s impact. With the help of a savvy risk advisor, money, time, and productivity losses along with the negative impact on customers can be minimized.
These two studies prove that business owners are concerned about risk management at an unprecedented rate. Making a career transition to a risk advisor has other benefits, as well. With the insurance industry facing greater commoditization each year, serving clients as a risk advisor is a powerful, differentiated strategy to stimulate organic growth. In that role, you and your agency will achieve:
- Reduced outside competition on key accounts
- Elimination of unnecessary “bidding cycles”
- Enhanced client retention
- Improved client and carrier relationships
- More fun
- Positive impact on your bottom line
As the year draws to a close, it’s critical to your success to be armed and ready to embrace the new trends and momentum for risk management services.