Hi, I am new to the insurance industry(Licensed in L & H, P & C) and want to start a independent agency and I am looking for good agency/clusters/aggregators that provide help and training to get started with the process and kick start the agency. Training and/or guidance initially as i build my book of business is critical as well. Please share your recommendations.
Recommendations Cluster/Agency/Aggregators
- Thread starter Yashassu
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- agency clusters new agency
Matthew Labb
Expert
Hey! Congrats on the new career path.
I am the business development manager for Horizon Agency Systems, we're based out of Colorado but we have agencies across the country.
My recommendation would be to look at several networks, and get a feel for each of them. Each set up is slightly different.
Don't fall for a network trying to strong arm you into signing now now now. Odds are they know that once you sign you are more less trapped.
A good network should encourage you to review multiple contracts and then decide what's best for you.
Here's a list of questions you should ask every network you speak to. Let me know if I can be of further assistance.
There are subtle nuances each network you approach and some not so subtle. This will help you do a more thorough search and by the end I hope you find the right answer for YOU, and that answer is far more clear than when you started searching.
I am the business development manager for Horizon Agency Systems, we're based out of Colorado but we have agencies across the country.
My recommendation would be to look at several networks, and get a feel for each of them. Each set up is slightly different.
Don't fall for a network trying to strong arm you into signing now now now. Odds are they know that once you sign you are more less trapped.
A good network should encourage you to review multiple contracts and then decide what's best for you.
Here's a list of questions you should ask every network you speak to. Let me know if I can be of further assistance.
- Do you have a good carrier mix across the lines of business I want to use in my agency?
- Are those carriers competitive in my region specifically?
- Do you have any production requirements?
- Do you provide an agency management system?
- Do you provide a comparative rater(s)?
- Do you have a non-compete or non-solicitation if I decide your network isn't for me? If so... why?
- Do I need an office or may I work from home?
- What if I am new to Insurance, is that ok in your network?
- Do you have any exit fees?
- Can I sell my agency at some point?
- If I sell my agency, do you take a cut?
- Will I quote, bind, and service my policyholders directly with the carrier on their sites, or submit through you.
- How long is my contract for, and do I get ownership right away, or over time?
- What are the startup fees and are you willing to work with me if I need to make payments?
- What is the commission rate/split?
- What is the criteria for participation in the contingency bonuses (if applicable)?
- When there are overrides and incentive bonuses do we get any of those while in your network?
- Do you have a cap on the commission split or do you take your split forever?
- Do you offer training during the startup phase of my agency and mentorship throughout the relationship?
- Are you open to me contacting some of your member agencies before I sign the contract?
- Are you open to me contacting some of your carrier reps before I sign the contract?
- May I have an attorney, or third-party consultant review my contract with me?
- How much industry experience does your network leadership have?
- Has anyone in your leadership had experience in running an independent agency?
- Does anyone in your leadership have any carrier experience/background?
- May I contract with other carriers outside of your network?
- How long have you been in business and how many agencies do you have in your network?
- Define ownership.
- How does your agency network make money?
- One of the most important things someone can do other than reading the contracts of many networks is to speak to the owner/CEO/president of each network to get a feel for the culture. If you find they don’t have the time to talk to you... message me your contact info and I will make time for you.
There are subtle nuances each network you approach and some not so subtle. This will help you do a more thorough search and by the end I hope you find the right answer for YOU, and that answer is far more clear than when you started searching.
- 2,204
Yashassu - there is a LOT of information on this forum already about many of the various Clusters and MGAs out there. It would be impossible to summarize it all for you. But most good clusters, are not going to want to educate an agent on the basics of insurance.
Additionally if you are new to insurance, the general consesus on this forum is that you first go work at an established captive agency and learn from them, on their dime, before heading off on your own.
Take it from an independent agency owner that there are two distinct steps: Learning how to be an Insurance Agent and Learning how to be an Agency Owner and it is in your best interest to simply take one step at a time.
Best of Luck
Additionally if you are new to insurance, the general consesus on this forum is that you first go work at an established captive agency and learn from them, on their dime, before heading off on your own.
Take it from an independent agency owner that there are two distinct steps: Learning how to be an Insurance Agent and Learning how to be an Agency Owner and it is in your best interest to simply take one step at a time.
Best of Luck
- 1,481
Interesting Conversation. I would simply say, That the decision to join an aggregator comes after a series or other decisions have been made. Should I Go Independent or Captive? Should I buy an agency? Should I be a commercial producer at a Large Commercial House? Should I work at an agency and ignore all the crap an agency owner has to deal with? If I go IA, can I get direct appointments? What will I get paid by those carriers as I grow? Who am I? What can I do? What can I build? At what pace? All of those questions and 100 more should be answered first, and then when you come to the conclusion that owning an agency through an aggregator is the best option, then you have to vet those. Joining a aggregator is not something you decide to do because you want Safeco and Travelers to write in DFW during a hard market. Some aggregators will and some wont, some have and some don't. Some charge and others won't. Some need the roll in and others don't. Explore the whys behind it. I am biased, I believe aggregation is the way. But if you get to that conclusion, you still have a lot more work to do to figure out. good luck.
- 5,290
Why on earth would you jump into a deep pool without learning to swim first?
I'm not trying to be mean, I just don't understand the reasoning.
Al3x Lee
Guru
- 956
For the glory!
Just kidding..
I always think of Gordon Ramsay, he wanted to become an amazing chef before he tried to build anything for himself. He knew he needed to spend years training under masters and learning the methods, so he did just that. I think if he hadn't, and just tried to jump in head first, he would have been like many others than opened a restaurant and failed.
I think insurance is the same way, the truly great ones don't try to build Rome in a day and are humble enough to limit themselves as they build their skills and knowledge base
Lloyds of Lubbock
Guru
- 714
Look at it from another perspective.
Why would a new agent or an experienced or experienced one want to join an agency where the owner has limited experience?
What actually are you bringing to the table to attract producers?
Why would a new agent or an experienced or experienced one want to join an agency where the owner has limited experience?
What actually are you bringing to the table to attract producers?
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