It's no secret the insurance industry is aging—along with the entire American workforce. According to U.S. Census data, there are about 79 million American baby boomers, with an increasing percentage of them older than 65 years. Meanwhile, population growth in the youngest age brackets is stagnant.

This opens companies to the perils of a leadership gap when boomers retire. For the many family businesses that comprise the insurance agency sector, filling that gap can be an issue fraught with political, emotional and familial issues. Further complicating matters for insurance entities are the inherent challenges in recruiting millennials. All of this combines to create an emerging crisis for the industry.

A strong succession plan can turn these intergenerational challenges into an opportunity for younger employees to move into leadership roles and older executives to act as mentors and pass on their expertise. Succession isn't a new concept to most insurance industry leaders, but few actually create an actionable plan. Agencies, brokerages and MGAs can use succession planning to fill leadership positions fairly and effectively, by identifying and mentoring the next generation of executives and vital employees.