As your agency continues to grow, you’re likely wishing you either had more freedom and independence, or on the flip side, more support and resources. Ideally, you’d like the option for both. This is where insurance agent aggregators and insurance cluster groups come into play.
Types of Insurance Groups
Whether you call them a ‘network,’ ‘aggregator,’ or ‘cluster,’ you’re familiar with them and know these terms are used interchangeably. However, they actually aren’t the same thing–when you’re hunting for the best insurance aggregator to join, it’s important to understand these key distinctions.
Still, all three of the names listed above do describe the same basic principle: insurance agents joining together to increase their benefits. Below, we’ll describe what makes each arrangement unique, including defining insurance clusters.
Insurance Clusters
Insurance or agency clusters are essentially a group of agents that bring their own books for a specific market to form a larger book of business. This allows them to establish themselves as a whole, with power in numbers, as well as to improve the profit-sharing in that same market. Typically, this takes the form of a new entity just for that particular market.
These clusters are generally based on location, forming regional or local clusters for agents in that market.
Insurance Aggregators
Insurance aggregators is a group of separate, independent agencies that join together to combine premiums. This allows for their members to have the advantages and scalability that is typically only available through large agencies.
This can look like fixed overrides, incentives, profit sharing, and more. It can also give you the prestige of a larger book, which opens the door for negotiations with larger carriers for better premiums.
Agency Networks
Just like aggregators, agency networks give you the benefits of combined premium books, which can lead to better benefits and better profit shares. These networks operate on a larger scale, typically reaching national levels. Agency networks work on behalf of their members to establish strong, national relationships with carrier partners.
Agency networks stand out because they provide a wide array of tools to help agencies grow. These specific partnerships with carriers allow them to pass along a host of benefits to the member agencies, such as:
- Access to appointments
- Higher profit sharing
- Additional incentives
- Higher commission and revenue opportunities
Which Is Right For You?
Due to the wide array of benefits included in joining an insurance agency group, there’s no question that you should join one. Because there are so many different types of insurance groups and each offers similar benefits, it can be difficult to know which one is a good fit for you and your respective goals.
Of course, your choice should align with your goals–but when it comes to growth in your business, the sky’s the limit. Insurance clusters may be a good starting point for independent agents or smaller agencies looking for local and regional growth, as these agents may not feel prepared for connections on a national level. When you are ready to expand your resources and reach, you might find that an agency network or insurance aggregator is the perfect match for you and your agency.
Final Thoughts
At Insurance Pro Agencies (IPA), we offer the exceptional opportunity for experienced insurance agents to not only embrace becoming an independent insurance agent, but to also represent multiple, notable national insurance companies. You can achieve the freedom and independence you’ve longed for, while staying connected to a large network of resources.
We offer direct carrier access with no volume commitments, which gives even the greenest agency the professionalism and backing to operate the same way an established agency does. All of this and more is yours when you work with our insurance aggregator. If you’re ready to start an independent insurance agency and need assurance for that final push, contact us today to get started!
