If you don't take control of your business in 2016, you won'tmake it to 2017. Like Marty and Doc in an insurance sequel to “Backto the Future,” independent agencies seem to have landed in 2015and found a business world they don't entirely recognize. Whileother businesses have been innovating and evolving at anexponentially faster pace, many independent agencies have changedlittle from their fax machine and spreadsheet beginnings.

I asked a few friends, who I respect as some of the mostforward-thinking professionals in the industry, what insuranceagency trends they think 2016 will bring. Their collectiveresponses support my overriding prediction:

2016 is the year independent agencies emerge as independentbusinesses.

As much as we tell ourselves we are independent and work for ourclients, until now, agencies have largely existed primarily as thedistribution and front-line service departments of the carriers. Asthe saying goes, follow the money and you'll find your answer.

That path leads to one conclusion: Agencies haven't been paidbased on the value they bring to their clients, they have been paidgenerous commissions because they are the most cost-efficient wayfor carriers to sell and service their products.

This reality has left agencies unbelievably vulnerable and hasresulted in countless unhealthy business practices. 2016 is theyear agencies seize control, make tough business decisions, andtake even tougher actions. They have no choice.

PPACA has hand-delivered a permission slip to the carriers tocut their distribution/service costs. Many of you yell and shakeyour fists at the carriers and argue that you can't afford to servethe needs of your clients for their reduced commissions. Guesswhat? It's not the carrier's responsibility to pay you to serveyour clients, it's their responsibility to pay you to distributeand help service their product.

There is an upside to this: It will force you to create abusiness that truly gets paid for delivering value to your clients;clients will always pay for results that make their businessstronger and more successful. When you make that transformation, you will start totruly enjoy your business again and no longer live in constantfear.

2016 will be another challenging year, but those who make it to2017 will find they are stronger, more confident, and moreprofitable than ever before. Here are a few of the trends that willhelp you get there.

1. Eliminate the two most damaging words in ourvocabulary: “I'm free”

If you don't become comfortable having a compensationconversation with clients, “I'm free” will become a self-fulfillingprophecy. You have to control your revenue.

Karen Kirkpatrick, owner of On Your Mark Consulting, sees thesame thing. “Brokers must manage their business as a business. Inother industries, businesses have clear pricing for everyservice/product they offer. Yet, our approach is to take what weget in initial commissions and make it last the whole year. If theclient demands more service, instead of charging appropriately, iterodes our profit margin.”

The industry's unhealthy relationship with money doesn't stopwith revenue, it continues with employee compensation. Ifcompensation programs are designed to reward the right behaviors,it should be no surprise that so many agencies struggle withgrowth.

Karen promotes a compensation structure that rewards growth, notstagnancy. She believes commission should be part of thecompensation formula for the support staff, not just producers. Ifthe service team is expected to retain business, they should bepaid for those results. At the same time, paying producers too muchfor renewals keeps them from focusing on the new business you hiredthem to produce.

2. Marketers, not producers, become the biggest driverof agency revenue

Many third-world countries have gone from no phone system tomobile phones in a relatively short timeframe. Wendy Keneipp,partner at Q4intelligence, insists that agencies must make asimilar leap with their marketing efforts.

“In 2016, marketing will be the difference-maker for agencies.Those that embrace quality content marketing are going to enjoyexplosive growth and will do so at the expense of those whodon't.”

Keneipp recognizes it won't be easy, but says agencies have nochoice. Those who realize that marketing is about educationalcontent, audience connection and client empathy will put togethercontent that speaks to the audience, grabs attention, and hasprospects knocking on their door.

As she reminds us, “Agencies need to see that effectivemarketing is not only the first critical step of the sales process,it's what makes the rest of the sales process infinitelyeasier.”

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3. Politics will make for strangebedfellows

In the past, most of us assumed that, in terms ofindustry-related legislation, Republican = good and Democrat = bad.Not so fast.

As explained by NAHU CEO Janet Trautwein, “Brokersshould take a good look at the health reform proposals of all ofthe candidates in detail, and not assume that either party'sproposal is good or bad.”

Janet points out, “As an example, we have a new Speaker of theHouse who is very interested in overall tax reform and is likely totake a serious look at the tax exclusion on employer-paid benefits.This is not the deduction employers have for the benefits theyprovide, but addresses the fact that the employer contribution isnot considered taxable income to the employee. This is apotentially significant new tax liability for those who haveemployer-paid health insurance.”

This is the year to pay attention to the details. There will benew legislation introduced and attempts to fine-tune existinglegislation. This is legislation that will make a big differencefor both you and your clients. Do not automatically assume either“team” (D or R) is fighting for your best interest.

Whoever thought we might look at “Hillary-Care” as our bestoption?

4. He who controls the data, rules theworld

This should scare the hell out of an industrythat “pushes the envelope” with fancy Excel spreadsheets. If 2015was the year that the industry finally faced the reality oftechnology, 2016 will be the year they experience the power of thedata captured by that technology.

George Reese, CEO of Employee Navigator, paints an intimidatingpicture. “If we start aggregating all of the data, prospecting forindividual insurance sales will never be the same. Think of this: Inow have 1.6 million employees and dependents on my platform. Iknow when someone has a baby and when someone gets a pay raise.Imagine what happens when I identify the 29-year-old person who hasgotten 20 percent pay raises for the last three years. We know heis a 'future high earner.'”

Think about that. How easy is it to market/sell to someone whenyou are armed with that much information?

But it won't stop with individual insurance. You have to capturethe data that will tell you about the prospects coming to yourwebsite. Do you know who visits? How often? How long they stay?What they read about? How they are responding to your othermarketing messages?

If you don't know, you need to, because in 2016, yourcompetition will be capturing that information as the same prospectrepeatedly visits their site. Who do you think will be in a betterposition to win that client? Yeah, scary isn't it?

5. Your role evolves from insurance broker toperformance broker

We can no longer be in the product business; we have to be inthe advice and results business. Sure, we will still be givingadvice around, and driving results with, insurance products, butour clients need us to be so much more.

Alan Katz, CEO of Take44, agrees. “Brokers will become acritical hub to their clients. Whether it's figuring out PPACA,reporting/coverage requirements, or compliance, being an employerhas never been more complicated. Employers need help in new waysand, of all their advisors, it will be their benefits broker towhom they turn most often. This doesn't mean employers expect theirbroker to have all the answers, but they will expect them to knowwhere to find those answers.”

This role may sound unattainable, but you're closer than yourealize. As Katz said, you don't have to have all the answers ordeliver all the solutions yourself, but you do have to be thearchitect of a collaborative team that, together, can be the hubyour clients need.

You have always collaborated with the insurance carriers to meetyour clients' insurance needs; 2016 is the year you have to applythat same approach to the non-insurance areas of theirbusiness.

6. Put your mouth where your money is

A 2009 McKinsey study found that, if communicated effectively,the cost of the average benefit program could be reduced by up to20 percent. Brokers advise their clients to move carriers and slashbenefits for a premium reduction in the single digits, but won't goto the effort to put together an effective communication strategythat would have a significantly larger financial impact.

Jen Benz, CEO of Benz Communications, confirms that nothing haschanged. She sees a relatively easy answer. “Most companies greatlyunder-invest in communications. It would be revolutionary if theywould simply do the basics; have a good user-friendly Web resourcefor employees and families and communicate year-round to help themunderstand and use their benefits.”

As boomers finally retire, it will be harder than ever toattract and retain top talent. As I see it, the cost of notcommunicating effectively isn't limited to wasted premium dollars;it could cost employers the very talent they need to be successful.In fact, it may already be happening. “We are already seeing thatthe employers who invest in engaging employees can leap ahead oftheir competitors and take average benefits and make them feelexceptional,” Benz says.

7. An adaptive culture becomes your biggest competitiveadvantage

Ours is an industry that has been painfully slow to change.Sure, we have seen incremental shifts, but we largely work the sameway we always have. It can't be that way anymore.

Our reluctance to change has left usvulnerable and too far behind the pace of the rest of the businessworld. If you only focus on one thing in 2016, let it be yourorganization's ongoing ability to change and evolve.

As Michael Lujan, co-founder of Limelight Health, explains,“Agents should change… and then change some more. The healthinsurance and benefits market will continue to adjust and settle,in much the same way a building settles after an earthquake. IfPPACA is an earthquake, some structures will be found stable, somewill retrofit, and others might be 'red-tagged' fordemolition.”

2016 will be a year of tough decisions and tougher actions. But,if you want to make it to 2017, you have no choice. Not only doesyour business depend on it, your clients are depending on you tomake that change happen.

When you start to operate as the independent business describedabove, you'll emerge as the single most important businessrelationship enjoyed by your clients. They will value yourpartnership more than that of their attorney, CPA, or banker. Andthe reason will be because you have transformed yourproduct-focused agency into an advice and results business thatimpacts clients strategically, financially, operationally andemotionally. They will be more successful because of you.

Not that is a future worth fighting for. So, take a deep breathand let's all make a New Year's resolution that 2016 is the year wego out there and kick some ass.

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To hear more about the many changes affecting our industry,be sure to attend the 2016 Benefits Selling Expo – the benefitsindustry's premier educational and networking event for employeebenefits brokers, advisors, agents, andconsultants. REGISTER TODAY and SAVE $100 with codeWBBPROL1.