The relationship between an Insurance Agency cluster (Also knows as agency network or alliance) and an independent agent isn’t that old or complicated. In fact, it has been around in the market for more than 25 years. Since most of the agencies build up their business as a captive agent who runs under the supervision of the parent company, they depend on the parents for pretty much every facility.
What are the advantages of joining an Insurance Agency Cluster for an Independent Agent?
Boom of Independent Agency
Now that the idea of running an independent agency is no secret, most of the captive agents tend to shift their business towards being independent. Even Nationwide, one of the biggest carriers in the US is planning in the transition approximately 2000 agents working under them to shift toward being independent agents. Although it requires more risks and hardship, the benefits of being independent outweigh those hardships for most people leading them to rethink moving toward the independent industry.
The main focus as any new independent agent is to sustain and survive in this competitive industry. So they reach out to different cluster agents and it makes perfect sense. As cluster agents provide new independent agents with different benefits and mutual support, it is a perfect opportunity for independent agents to partner up with them.
Agency alliance is vital when it comes to the sustainability of independent agents and without independent agents, these alliances aren’t going anywhere either. It is sensible and reasonable that independent agents reach out to clusters as they need to sustain as a new business and will need help from any direction to do so. With that being said, it is also the duty of these clusters to not only use them for their own benefit but show them the actual care and help them with their problems as helping them is practically helping themselves.
Changing industry landscape
Change is inevitable so you might as well grow and adapt with that change. More and more people are shifting toward being independent so agency clusters should pay more attention to their needs and necessities. The growth of both independent agent and agency clusters go hand in hand without a doubt.
Lack of communication causes the agents to lose client more often than the cost. Cluster alliance can help the agents get off more than 50% of the work off their shoulders so that the agents can focus more on their clients and communicate. That way, it’s a win-win situation for both the agent and the cluster. Insurance alliances provide the independent agents with greater access to carriers, better commission, right to their business, and it all comes for a better price of a small shared commission.
Cluster agency needs to gather up different agents and it takes a lot of time and patience to do so. Hence it is a practical move for them to build a better relationship around those agents and help with their development. After all, helping the agents are helping the clusters themselves. It is the cluster agency’s responsibility to help independent agents fend off the big organizations that spend billions in marketing their organization so that the independent agent can gain the area they need to market off themselves.
Exclusive Focus on selling
Insurance agents should be able to do what they are good at instead of all the paper works and dealing with unwanted tensions. Instead, they ought to focus more on their clients and this is when the cluster agency comes in. It is their duty to make those problems their own and solve them so that the agents can focus on marketing their product and communicating with their clients.
Independent agents always need more guidance and planning. It is the cluster agents’ job to guide them on what can prove to be better for them. For the independent agents to flourish, they need a better business planning, marketing, and guidance. It is the cluster agents’ job to make it their job. They should be able to provide better network and support, increase the carrier market and improve the commission rate. An independent agent has lots of reasons and benefits of joining an insurance agency cluster. Some of them are
The main target of an independent agent to leave captivity is so that they can have the freedom and become independent. Insurance agency clusters provide that independence for them keeping your current company name.
2. Network Openings
In partnership with an IAC, you have access to bigger a network system. Excellent network opportunities open up with professionals as you involve yourself with events like meetings, gatherings, etc.
3. Marketing and Sales Support
Most of the insurance cluster helps you with your sales and marketing and guides you to the better options that are out there. They can provide with superior digital marketing with a social network so that independent agents can appreciate improved client rates.
4. Better Technologies
It is important that you stay updated on the upgrading technologies for your self-betterment. Instead of basic paperwork, you can rely on the improved technological support your IAC provides you with. With better prices, you can have access to better equipment.
The balance between the insurance agency cluster and an independent agent is impeccable. They are like the two sides of a coin, so without one, the other cannot thrive.