Unlocking the Secrets of Sustainable Organic Growth in the Insurance Industry

In the insurance brokerage world, organic growth has long been hailed as the ultimate measure of success. But is all growth created equal? Are brokerages truly achieving organic growth, or are they merely riding the waves of external factors like economic growth and rate increases?

At DOXA, we’ve delved deep into the nuances of organic growth to uncover the truth behind the numbers. According to our analysis, the average firm saw organic growth rates of 10.2% in 2023, with a significant portion attributed to factors like premium rate increases and exposure base growth. This begs the question: how much of this growth is truly organic?

Differentiating Peak Performers from Average Firms

While many brokerages bask in the glow of double-digit growth rates, peak performers stand out by achieving outsized results regardless of market conditions. These top-tier firms, comprising the Best 25%, achieved organic growth rates averaging 18.7% in 2023. What sets them apart? It’s their unwavering commitment to driving real, sustainable growth through superior new business production and retention strategies.

Unveiling “Real” Organic Growth

Real organic growth goes beyond surface-level metrics to capture the true essence of value creation. Just as calculating the real interest rate on an investment requires accounting for inflation, assessing organic growth demands a nuanced approach. At DOXA, we define real organic growth as the portion of growth unaffected by external factors like rate increases and economic conditions.

The Path to Becoming a True Value Creation Advisor

So, how can brokerages unlock the secrets of sustainable organic growth? It starts with a fundamental shift in mindset—from selling features and benefits to selling outcomes. As CEOs across industries prioritize shareholder value maximization, brokerages must align their value proposition accordingly. This entails:

1. Specialization Through “Big Data”: Leveraging data analytics to drive specialization and predictive modeling across industry verticals.

2. Dollarization of Value Proposition: Quantifying the impact of risk mitigation strategies in terms of tangible value creation for clients.

3. Delivering on Promises: Establishing a structured service timeline, stewardship reporting, and compliance audit management system to ensure accountability and client satisfaction.

4. Commitment: Fostering a culture of commitment from top leadership down to frontline staff, with non-negotiable standards for service excellence.

5. Implementation: Investing in technology and training to support the execution of value-added services and accountability measures.

6. Compliance Audit Management: Instituting a robust system for monitoring and addressing service commitments proactively, driving continuous improvement.

7. Control Your Future: Embracing proactive risk management and client engagement strategies to drive long-term value for both clients and the brokerage.

Embracing the Future of Organic Growth

In a rapidly evolving landscape, brokerages must adapt or risk falling behind. By embracing the principles of real organic growth and becoming true value creation advisors, brokerages can chart a course for sustainable success in any market environment. At DOXA, we’re committed to empowering brokerages to unlock their full potential and thrive in the face of uncertainty. Join us on this journey towards a future of sustainable organic growth.

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Unlocking the Secrets of Sustainable Organic Growth in the Insurance Industry