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Small commercial is still largely controlled by independent agencies, is reliably profitable, but highly fragmented. Even the “titans” of the industry have less than 10% market share. In short, small commercial is ripe for the taking. Sounds great, right? 

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.

There are two different types of insurance agents — captive and independent. Which one's right for you?

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.

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.

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?

Insurance clusters, aggregators, and agency networks are three options for independent agents that each offer their own unique advantages. However, there are some distinct differences to take into consideration when deciding to join any of them.

The insurance needs of manufacturers and wholesale distributors continue to evolve. With these challenges, proper assessment of your client’s assets (building, business personal property, and business income) and liability exposure are all key to achieving adequate insurance coverage and managing risk.

Many people fail to understand accountability, its importance, and where it begins. Whether you are a new business owner or an experienced leader, it starts with YOU! Good leaders know how to foster a culture of accountability and execution. They make commitments and they keep them.