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Standards & Guidelines For Appraising Insurance Agencies / Brokerages 2015

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Mission and Purpose of These Standards & Guidelines 

MISSION 

It is our mission to establish and promulgate specific industry recommended standards and guidelines to be used and applied to when performing, preparing and reporting appraisals of 

1) insurance agencies, brokerages or

2) of other entities whose primary function is the sale and/or servicing and/or administration of insurance policies and programs and/or

3) of insurance-related books of business.  The establishment of standardized procedures and methods will promote consistency and enhances the appraisal process and increases the appraisals credibility and reliability of the information with clients, courts and other interested parties.

The American Association of Insurance Management Consultants is dedicated to being the source for the establishment of appraisal standards and guidelines used in the evaluation of insurance entities providing sales and services within the insurance industry.

 

PURPOSE 

The purpose of these Standards & Guidelines is not to provide a step-by-step manual for performing an appraisal or calculating an opinion of value.  It is assumed that the appraiser who subscribes to the AAIMCo Standards & Guidelines possesses significant experience in insurance agency appraisals, and will already be well versed in the mechanics of calculating an insurance agency’s value.

The purpose of these Standards & Guidelines is to provide accepted an industry-standard for performing an appraisal or calculating the value of an insurance entity providing sales and services within the insurance industry. 

Each appraiser will ultimately define how to perform an appraisal and how to report the findings.  However, it benefits both the appraiser and the client when the appraiser follows established industry standards that have their foundation in those particular facts uniquely applicable to the insurance industry. 

By establishing and publishing these Standards & Guidelines, it is AAIMCo’s purpose . . .

 

  • to increase the quality of appraisals performed by AAIMCo membersand other appraisers of insurance entities, and
  • to establish procedures, standards, guidelines and methodologies that recognize the need for reliable, consistent presentation of financial information and
  • To promote to promote the broad based acceptance by both private and public users of such critical information in economic transactions, compliance and dispute resolution, such as the courts, buyers and sellers of these firms, financial institutions, and State Insurance Departments. 

 

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