Wells Fargo on the hunt

In a continuing saga, Wells Fargo Bank is in the hunt for independent insurance agencies to increase their presence in the agent/broker distribution business. Also because of the struggle to grow in a soft market, the strategy to "buy your growth" is more attractive than ever. This is very revealing for all those in this business. The insurance product is mature and shows very little signs of really anything new that can catapult the industry. Therefore the business model of growth can only be accomplished by mergers and acquisitions. Everyone is trying to find the right size to make scale. What do I mean by scale?  It is the size that every insurance agency/brokerage wants to be to gain clout with their insurance company suppliers. The larger the agency is the more clout they can achieve. This helps agencies with retention because they can negotiate pricing more effectively with insurance companies. In addition companies will more likely give the larger agencies preferential treatment with services and underwriting attention. Yes the saga, continues as large broker houses look to grow organically by acquisitions. Until next time be careful out there and know your risks. K
G. Kevin Nemith
President/CEO
CNC Insurance Associates Inc.
Small Business Insurance Center

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