Increasing numbers of new agency owners, existing independents, and former captive agents are looking to join agency networks to compete in a tough insurance market. But how do you choose the right agency network partner?
One of the most destructive sales myths in circulation is how the “bulldog” insurance agent finally got the contract, the deal, the sale, after months of constant work. This myth is held up as the epitome of what sales is all about. For the vast majority of insurance agents, the sale is not worth hundreds of thousands in commissions.
InsurTech solutions have definitely changed the way we all do business. However, I encourage you to not consider InsurTech as a disruptor of business as usual, but as a new opportunity to optimize your agency. Here’s what you need to know about this game-changing trend.
I’m going to go where no author has gone before….writing an article about Cyber with no mind-boggling statistics that would scare you, no prattling on about coverages, sublimits, and first or third party exposures. No “inside baseball” talk about loss prevention and breach response being key to every business’s cyber security strategy. Frankly, you’ve heard it all before.
In this business, we handle so much sensitive personal and private financial consumer information that we have to be vigilant about staying on top of cyber security. It is important to always be cognizant of potential threats in order to preserve your clients’ security and that of your book of business. Making sure you are aware of these risks now will save you time and money in the long run.
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.
One of the primary reasons so many agents choose to go the independent route is the freedom it brings – the freedom to manage your own life and business, and the freedom to build something on your own terms. It’s very different from running an agency in the captive world with all if its restrictions and requirements – and you have more decision-making capabilities when it comes to your clients and growth targets.
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 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.