When evaluating insurance aggregators, one of the most important — and most overlooked — questions is: How are the carrier appointments structured? The answer determines how much independence you actually have, what happens if you leave, and who truly controls your carrier relationships.
Model 1: Master Code (Sub-Code)
In a master code arrangement, the aggregator holds the carrier appointment. Agents write business under the aggregator's code as sub-producers. From the carrier's perspective, there is one customer: the aggregator.
How it works:
- The carrier appoints the aggregator and assigns a master producer code
- Each agent gets a sub-code under the master account
- Commissions flow from the carrier → aggregator → agent
- The carrier relationship belongs to the aggregator, not the agent
Advantages:
- Quick access — the aggregator already has the appointment, so new agents can start writing business immediately
- No individual volume requirements from the carrier
- The aggregator handles compliance and reporting with the carrier
Disadvantages:
- You do not have a direct relationship with the carrier
- If you leave the aggregator, you may lose access to that carrier
- Your commission rates are set by the aggregator, not negotiated directly
- Book portability depends entirely on the aggregator's policies
Model 2: Direct Appointments
In a direct appointment model, the agent is appointed directly by the carrier. The agent has their own producer code, their own relationship, and their own commission agreement.
How it works:
- The carrier appoints you directly as a producer
- You have your own producer code and login credentials
- Commissions may flow through the aggregator for administrative purposes, but the appointment is yours
- If you leave the aggregator, the carrier appointment stays with you
Advantages:
- Maximum independence — the carrier relationship is yours
- Full portability if you change aggregators or go solo
- Potential to negotiate your own commission rates as you grow
- Stronger personal relationship with carrier underwriters and reps
Disadvantages:
- Carriers typically require minimum volume to grant direct appointments
- More administrative responsibility for the agent
- Not all carriers offer direct appointments to agents working through aggregators
Model 3: The Hybrid Approach
The most practical model — and the one IPA uses — is a hybrid. New agents start with access through the aggregator's appointments, then transition toward direct appointments as their volume and carrier relationships grow.
This gives you the best of both worlds: immediate carrier access from day one, with a clear path to full independence as your agency matures.
What to Ask Your Aggregator
Before joining any aggregator, ask these questions about their appointment model:
- Are my carrier appointments under a master code or direct to me?
- If I leave, which carrier appointments do I keep?
- Is there a path to direct appointments as I grow?
- Who negotiates commission rates with the carrier — you or me?
- What volume do I need to qualify for direct appointments?
The answers to these questions will tell you more about your true independence than any marketing brochure.