2024 Top Insurance Aggregators & Agency Partnerships

Smart Choice was once again named to the Insurance Journal’s annual ranking of top Insurance Agency Aggregators, Networks, and Partnerships.

This year Smart Choice came in at number 11, and remains the fastest growing agency network in the country and one of the last completely independent insurance agency networks.  

Here’s a look at this year’s rankings: 

These partnerships include agency aggregators, networks, and alliances who have played prominent roles in the insurance industry, and collectively represent $9.75 billion in total annual P/C revenue. This number is up from the $1.4 billion in total P/C revenue that networks and partnerships accounted for when Insurance Journal first began their rankings in 2014.  

Hard Market Impact 

Smart Choice has experienced consistent growth over the past seven years, with over 1,000 new member agency partners joining annually. The company expects to bring in 1,800 new agencies this year.

Other major agency partnerships also saw significant growth. 

The hard market partly influences the rise in new members by limiting new agency appointments. Additionally, seasoned commercial lines producers have boosted recruitment by leaving agencies acquired by private equity firms, which has introduced more new agencies into the market. 

In addition to the increase in new members, the Top 20 Agency Partnerships saw substantial financial growth, with total P/C revenue increasing by over $2 billion from 2022 to 2023. 

Unlocking the Benefits of Alliances and Aggregators for Independent Insurance Agents 

In its 2022 study, Insurance Network Alliance found that there are just over 150 networks and alliances across the country, and collectively they represent just over 22,000 agencies across the country.

With this kind of financial growth, it's clear many independent agents see the advantage of a partnership with an independent agency network or alliance.

These partnerships support independent agents with critical access to insurance carriers and market access to help expand their books of business, and often provide discounts and savings to other business tools and software solutions as well.

In addition, alliances and insurance aggregators provide agents with the advantage of combining the premiums their books generate with other agencies to gain access to privileges and benefits often only awarded to the largest agencies in the industry. 

Business Models in Financial Services: Aggregators, Alliances, Clusters, and Networks 

In the financial services sector, terms like "aggregator," "alliance," "cluster," and "network" are frequently used to describe various business models, each with its unique structure and impact on independent agencies, complete ownership, insurance companies, and financial gains. 

• An "aggregator" centralizes multiple independent agencies, providing shared resources and combined premium power, however often is for established agencies who can bring something to the table. 

• An "alliance" is similar to a network, but involves a more formal partnership that may lead to shared ownership of the agency, strengthening bargaining power with insurers. 

• A "cluster" represents cooperative groups of agencies that pool resources usually to create more combined power to meet loss ratios and profitability standards within a single market. 

• A "network" is a loosely connected collaboration of agencies that maintain their own autonomy and ownership, and use their network for resources, markets, and increased profitability. 

Understanding these distinctions is vital for optimizing operations, pursuing ownership, negotiating favorable terms with insurers, and increasing revenue. For more detailed insights, read Insurance Cluster Groups, Aggregators, and Networks — Which Should You Join? 

Choosing the Right Partnership for Independent Insurance Agencies: A Comparative Evaluation  

Not all agency partnerships are created equal; each one charges its own types of entry fees, monthly fees, commission splits, and more, while also offering access to different markets, products, discounts, mentorship, marketing assistance, and additional benefits.

Each independent agent has his or her own unique situation and needs and will need to evaluate the right type of partnership for themselves.

To explore agency alliances and networks, read The Power of a Network Partnership for Independent Agents and Hidden Agency Network Contract Clauses - 4 Ways They May Come Back to Bite You.

Agency alliances and networks play a pivotal role in the insurance industry, offering essential resources to support independent agents in managing expectations, requirements, and markets. 

Smart Choice is an agency “network” and considers its members partners with whom they work together to achieve mutually beneficial growth strategies. Whether you're currently a captive agent, newer agent, or independent, we'll help you transition your business to the next level.  

To learn more about the growth opportunities available to Smart Choice agency partners, click here.