It’s been a wild and exciting two years in the real estate and title industry. Understandably we all have some anxiety heading into 2022. Clearly we cannot control the market, seasonality, nor rates. We can however control our vision and strategy, to assess how we measure performance and success. We’ve all been extremely busy, too busy in fact to make disruptive changes. Below I have outlined ways to increase your company’s value, which will be critical in a slowdown.
As EVP of Agency Operations, I work closely with our Founder and Executive Chairman, Patrick Stone. Quarterly Patrick and economist Bill Conerly co-host a title industry webinar. In the latest, Patrick provided perspective as we enter a new year.
“If you look back over the last four or five years,” he said, “in 2016, 2017 and 2018, total premiums written were in the $14 billion range. In 2019 we edged up to about $15.8 billion before the all-time record of $19.2 billion in 2020. This year will come in close to that, and I see 2022 being in the $16 to $18 billion range.”
Tidal shifts, title shifts
Like a child standing in the ocean, you must be prepared for the next wave. Preparedness and success in 2022 can be easily adjusted to one overshadowing approach - improving your margins. Remedial thinking is often linked simply to staff reductions and new business.
Adjust your mindset
There is much more to it, and a margin focused mindset, focused on distinct improvement methods will ultimately create a more valuable company.
Whether it’s existing or new clients, improving relationships or internal processes, you have the time and ability in a slowing market to dedicate resources to restructure how business is done. Take this opportunity to evaluate your agency’s relationship with your underwriter partners. Some, like WFG, have made it a priority to initiate programs that can save you money by shifting fixed costs to variable costs. Scrutinize, analyze and address your business unit’s levels of activity, and how you are conducting business. Focus on:
- Improving your partnerships
- Improving your technology
- Improving your processes
- Improving your revenue sources
As Patrick told his webinar audience, “I would recommend that every agency out there take a really hard look at what you're doing and stay abreast of changes in technology, cybersecurity, and other areas. One thing you don't want to do is sit back and wait to see what happens. You want to make sure that you're staying abreast of what's happening and that you adapt quickly.”
Look in the right places
Challenge yourself to offset any rate driven or seasonal declines with new business. Get your team and talent in aggressive mode, as competition may be taking a different approach and relaxing its efforts in response to a market slowdown. WFG’s Agency staff works from a methodical approach to identify top targets and initiatives. You should adopt a similar method with your own specific criteria to measure sales success internally and externally. Establish 1:1 meetings with your sales team to track metrics towards key performance indicators (KPIs).
Make sure you don’t lose focus on current clients! Remind your team that having a great personal relationship with a client does not mean you will keep that client forever. You must have foresight, viable products, and consistently execute to maintain a client relationship long term. Make sure your clients know you are there for them, in good times and bad.
Be good to yourself
Our industry is finally embracing AI / machine learning and robotic processing. Let me be clear, the intent and application of these tools is not to eliminate the need for humans. Clearly there are complexities in our industry that Robotic Process Automation (RPA) will not solve. AI works brilliantly when used for specific functions, whilst directing complicated tasks for a human brain. Use these tools to identify, classify, direct and process, and even respond to issues - but the responses, iterations and anomalies, and auditing of those responses are inherently and forever human. I strongly encourage you to investigate offerings and look for products to layer into or leverage within your current tech stack. Doing so will allow you to improve how you do business, and your margins.
Know what you want
The right partners are critical. There are a vast array of business solutions for title agents. For example, WEST, a Williston Financial Group company, has technology solutions and tools for Agents ranging from health insurance, to HR support and cybersecurity.
Additionally, the WFG Blocks program has offerings for Marketing and Sales, Compliance, Title & Settlement Solutions, Human Resources, Information Security and Expense Management. In addition, WEST has a team of Marketing Technology Directors who provide assistance in every area of marketing, from branding to blogging, and beyond.
Patrick Stone recommends to “talk to our WEST Marketing Technology Directors. You can automate a lot of your processes and you can outsource a lot of your business through our Blocks program, which will let you lower your fixed costs dramatically, giving you a lot of optionality as things change.”
By the way, WFG’s Blocks program is the focus of a recent White Paper available for viewing here.
Make sure it works
I encourage you to use 2022 wisely, as I believe two mindsets will emerge. One will stick their head in the sand.
The other will embrace change, strategically reshaping how they do business and measure success. Again, improvements must drive scalability, margins and more company value. Thus, whatever wave comes, your business is prepared and will profit nicely.
Here’s to a transformative 2022!
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About the Author
Baron C. Buss is Executive Vice President of Agency Operations for WFG National Title Insurance Company. He strives to help title agents grow their businesses through creative and forward-thinking solutions. Baron believes that title agents do not merely want an underwriter, they want a strong business partner with exemplary resources.
With a quarter-century of experience in the title industry, Baron worked for two of the top national title insurance underwriters before joining WFG. His expansive knowledge and lengthy career have enabled him to help guide WFG’s Agency team to success.
Baron studied real estate and finance law at the University of Miami in Coral Gables, Florida. He resides in Dallas, Texas, with his wife and three daughters.
URL: https://wfgagent.com/