Driving Sustainable Growth in Insurance Brokerage: DOXA’s Proven Strategies for Success

At any time, under any market conditions, growth is a major focus for any insurance brokerage firm. Here are some strategies that your brokerage executive peers are using to solve challenges and drive revenue growth.

Acquisition Opportunities to Accelerate Growth

Once upon a time, acquisition strategies were mostly the domain of the top 50 insurance firms or firms backed by private equity. However, there has been a recent shift toward acquisition among firms without private equity, alongside organic growth. Many firms are capitalizing on consolidation opportunities by acquiring smaller firms – those under $5 million in revenue – as private equity investors are often less interested in deals of that size. These acquisitions facilitate faster market entry, expand customer bases, enhance expertise, and generate new revenue streams.

DOXA is at the forefront of this trend as a leader in the MGU and MGA acquisition space. Our approach to acquiring smaller and mid-sized firms positions us as a partner of choice for those looking to grow strategically while leveraging our deep industry expertise and established infrastructure.

However, acquiring another firm is not without its challenges. Similar to competing in the sales process, brokerages looking to acquire often encounter obstacles in finding the right purchase opportunities and competing with other interested parties. DOXA’s experience in acquisition strategy and our extensive network enable firms to navigate these challenges efficiently and successfully.

Emphasizing Sales Velocity for True Growth

While some firms prioritize acquisition, others continue to pursue organic growth by hiring producers with niche expertise to generate new business and increase sales velocity. Sales velocity differs from general organic growth as it focuses purely on the volume of new business written year over year, rather than growth driven by rate increases. This metric helps firms clearly distinguish between revenue from new sales versus lift.

As rate increases slow, sales velocity becomes a vital metric. Firms must ensure their pipelines are filled with genuinely new business rather than relying on premium increases. Additionally, firms are holding non-producing producers accountable through structured compensation changes, rewarding those who generate substantial revenue and reclassifying non-producing roles where necessary.

The Rise of Small Business Units (SBUs)

Small Business Units (SBUs) are becoming a popular strategy to improve efficiency and client retention. These units manage small referrals from top clients, helping firms maintain relationships without diverting resources from larger accounts. Research from DOXA shows that 80% of a firm’s revenue typically comes from just 20% of its book of business, while the bottom 80% demands the most attention. SBUs help manage this imbalance, freeing up producers to concentrate on significant growth opportunities.

DOXA’s proven expertise in building and managing SBUs ensures that firms can optimize performance, maximize client retention, and drive sustainable growth. As a leader in the SBU space, DOXA continues to provide guidance and support to firms looking to establish or enhance their small business units.

Strategic Planning and Accountability

Discussing growth is one thing, but execution and accountability are essential. Effective strategic planning involves setting clear growth targets and tracking performance at every level. Top firms use well-defined key performance indicators to measure progress and hold teams accountable. By aligning strategic planning with actionable metrics, brokerage firms can secure a stronger, more profitable future.

DOXA’s commitment to strategic growth and industry leadership empowers firms to embrace innovative strategies and thrive in any market condition.

What is your firm doing today to ensure it’s better tomorrow? Start the conversation today by evaluating your growth strategy, considering acquisition opportunities, focusing on sales velocity, and leveraging SBUs to drive efficiency.

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