Insurance brokers regularly encounter business they can't or don't want to service directly. Out-of-state clients, unfamiliar lines of coverage, risks outside carrier appetite, or simple capacity overflow — these situations arise in every brokerage. A referral arrangement with IPA turns those situations into referral income instead.
Common Scenarios for Broker-to-IPA Referrals
- Out-of-state clients: A broker licensed only in select states can refer clients in other states to IPA without losing the relationship entirely.
- Unfamiliar coverage lines: A personal lines broker can refer commercial clients to IPA rather than attempting coverage outside their expertise.
- Difficult-to-place risks: IPA's access to top-rated national carriers including Travelers, Hartford, CNA, and Liberty Mutual includes specialty and non-standard markets — ideal for risks standard brokers can't place.
- Overflow volume: High-growth brokerages that temporarily exceed their capacity can refer overflow to IPA and earn on policies that would otherwise be missed.
The Referral Arrangement
IPA's broker referral arrangement is straightforward: refer business, receive a referral compensation when the policy places. IPA handles quoting, carrier selection, policy issuance, and ongoing service. The referring broker receives a documented referral compensation and maintains goodwill with the client who got placed.