Are you looking into how to grow an insurance agency and expand your insurance agency into the commercial sector?
Doing this can be challenging, especially if you are new in the field. One of the biggest hurdles is gaining access to certain carriers or products because insurance companies may look at business track records and other metrics that a young agency might not have yet. If this is you, don’t let these obstacles discourage you.
There’s strength in numbers, and this is precisely the idea behind commercial aggregators in insurance. By pooling together collective businesses, these agencies present a consolidated book of business, which wields significant clout when negotiating with insurance carriers. They are power-packed alliances that unite numerous smaller independent insurance agencies under one umbrella.
Let’s do a deep dive into the benefits of joining commercial insurance aggregator sites.
More Carriers Means Better Options for Your Clients
Joining a commercial insurance aggregator allows you to access a wide range of carriers, significantly increasing your options for serving clients. Aggregators often assist in managing carrier relationships, freeing up more of your time to focus on what’s important–selling. They act as a bridge between you and the carriers, handling negotiations, issue resolution, and other administrative tasks that would otherwise consume your valuable time.
For example, perhaps your agency offers commercial property insurance and commercial auto insurance. The aggregator might handle activities involved in ensuring compliance with each carrier’s requirements, updating you on any policy changes, and resolving issues.
Remember that with access to many carriers, keeping up with the different products and policies each offers can become a complex task. It’s important to implement a robust system to keep track of each carrier’s offerings; regular training and updates can ensure you stay knowledgeable about the various products at your disposal.
Profit Sharing Can Increase Your Earning Potential
Aligning your agency with a commercial insurance aggregator introduces an attractive financial model that combines profit sharing and fixed compensation. This model presents a significant opportunity to enhance your revenue streams.
In the fixed compensation scenario, you get a predetermined amount for the business you write. This provides a reliable, consistent income base and financial stability needed especially during the initial phases of growing your client base.
Profit sharing adds a rewarding component tied to the aggregator’s overall success–it means you share in the profits generated by the insurance policies sold. The more business that is written, the more profitable a business is, and the higher your share of the profits will be. This presents a win-win scenario for both the agent and the aggregator, driving mutual growth and success.
Ensure that the compensation arrangement at hand aligns with your business goals and the amount of work you put in. Carefully review the aggregator’s compensation structure before joining, and make sure you understand how payouts are calculated and distributed.
No Volume Requirements Let You Grow at Your Own Pace
Not all insurance agencies are created equal, and this is especially true in terms of their size, market reach, and client volume. Recognizing this, some commercial insurance aggregators opt not to impose minimum-volume requirements. This approach gives you, as an independent agent or agency, the freedom to grow your business at a pace that suits your unique situation and objectives.
Without a rigid minimum-volume requirement, you can tailor your approach to business, meaning you can focus on building long-term, high-quality relationships with your clients rather than rushing to meet a quota. This flexibility is particularly beneficial for newer agencies or those moving into new markets, where it can take time to establish a presence and build a client base.
The absence of a minimum volume requirement allows you to focus on maintaining the quality of your client relationships and service rather than continually pushing for higher numbers. You can focus on understanding the specific needs of your clients and establishing your reputation as a trusted advisor.
Technology Platforms Can Enhance Efficiency
Many commercial insurance aggregators provide user-friendly technology platforms designed to improve the efficiency of your operations. These platforms could include agency management systems, digital marketing tools, data analytics programs, and customer relationship management software.
These tools can help you automate routine tasks, track your sales, and analyze performance data. By automating administrative tasks, you can focus on growing your book of business
Reach Out to the Pros
Join Insurance Pro Agencies (IPA) and unlock new opportunities. With IPA, you’ll gain access to top national carriers while enjoying ownership of your book of business. Contact us today to boost your business to the next level!
