Starting your own independent insurance agency can feel both challenging and overwhelming — and it’s a leading reason many agents start in the captive world or as a producer in someone else’s agency. Many feel that the challenges of simply knowing how to start any business are daunting and simply don’t know where to begin.
Agency Network. Aggregator. Cluster. The words are used interchangeably in the insurance industry, but are they really the same thing? If you are an independent agent looking for market access and agency growth, is it worth joining some type of an alliance, and how do you know which one is right for you?
If you’re currently exploring your options, you might be wondering — is an insurance agency cluster good for growth? Everyone’s situation is different, but here are some issues to consider before you join a cluster.
Smart Choice was named by Inc. Magazine as one of America’s fastest growing private companies. This is the 3rd consecutive year Smart Choice has appeared on the Inc. 5000 list with three-year revenue growth of 80%. The list represents a unique look at the most successful companies within the American economy’s most dynamic segment—its independent small businesses. Jamba Juice, Timberland, Clif Bar, Pandora, Patagonia, Oracle, and many other well-known names gained their first national exposure as honorees on the Inc. 5000.
Smart Choice® Agents Program reports breakthrough growth metrics in the first half of 2021 (1H21) and announces strategic hiring of key executives. Of the thousands that applied, over 600 agents were selected to join the partnership network. New executive hires will have leadership positions in Sales and Finance.
In just six months, 631 independent insurance agents have joined the Smart Choice Agents network. These new partnership agencies represent virtually every type of business from start-ups to well established agency groups with multiple offices.
Independent insurance agents see the potential of a rewarding career with high earnings. However, unlocking that potential can be tough. The truth is that there’s a lot of competition out there, and it can be difficult to gain access to the best insurance carriers and product lines. Success is possible, but you might need some support to find it — and some agents find that support in insurance clusters.
Independent agents who partner with a high-quality agency network experience better growth and close-ratio outcomes post-relationship. Retention of book of business, opportunities for higher commissions, no network fees, and flexibility to choose which network services to use facilitate agent satisfaction.
When evaluating an agency network as a partner for the independent agent, there are many factors to consider. Each agent’s business model is unique, so solutions need to be flexible and scalable to the individual.
We surveyed and interviewed independent agents from across the United States to understand the hurdles they face, the partnerships they’ve engaged, and how these strategies have affected their businesses. In our research, we explored the options they chose to overcome income and growth barriers while remaining independent.
The independent model is appealing and offers many advantages — but there can be downsides. Get instant access to our whitepaper, which provides strategies to help independent agents overcome these hurdles and achieve success.
