P&C Agency Clusters

alamp

New Member
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I would like to identify retail P&C cluster members who have joined a cluster that is either centralized (with a shared services platform) or decentralized (largely informal arrangement with other partners). I'm focused primarily in Texas. Any ideas how to identify cluster members/operators? Thanks!
 
Check out Agent Secure. I currently use them and its worked out pretty well. They take a little cut off the top of the commissions but you own the client and its not expensive to sign up.
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Oh, maybe I misread your post. Are you looking to sign up with a cluster to gain access to markets??
 
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I am requesting your help identifying clusters and cluster members so that I can speak to parties who would help me to ascertain which clusters are the better cluster operations to align with in this region.

I plan to align with a cluster in order to gain access to markets. More specifically, I intend to develop an agency (by leveraging the cluster alignment) to offer a haven for talented producers who would like to own ‘equity’ in their book but currently work for an organization that does not allow them to participate in the underlying value that they have created. I am a champion of the ‘little guy,’ and I believe this business centers around the talent and the relationships of these producers. I can underwrite capital requirements while non-competes run out.


In this process, if I find an opportunity to invest in a cluster (to expand shared services, for instance) then I will take a close look. Nevertheless, my primary purpose is to identify clusters (in Texas) to find one with the flexibility that I desire and with operators that I like.

Thanks!
 
I am requesting your help identifying clusters and cluster members so that I can speak to parties who would help me to ascertain which clusters are the better cluster operations to align with in this region.

I plan to align with a cluster in order to gain access to markets. More specifically, I intend to develop an agency (by leveraging the cluster alignment) to offer a haven for talented producers who would like to own ‘equity’ in their book but currently work for an organization that does not allow them to participate in the underlying value that they have created. I am a champion of the ‘little guy,’ and I believe this business centers around the talent and the relationships of these producers. I can underwrite capital requirements while non-competes run out.


In this process, if I find an opportunity to invest in a cluster (to expand shared services, for instance) then I will take a close look. Nevertheless, my primary purpose is to identify clusters (in Texas) to find one with the flexibility that I desire and with operators that I like.

Thanks!

I'm in a great cluster in another part of the world. We wouldn't let a new agency join. You have to bring something to the table. I assume most clusters feel the same way.
 
Just heard an interesting story about a cluster the other day when one agent found out "his" loss ratio with one carrier qualified him for a 80K contingency check...which he did notreceive because other agents in the "cluster" dragged the loss ratio with that carrier down.

As far as the question...if you're looking for a "cut" from your producers on top of the "cut" the cluster takes from you...what's in it for the producers? And what would keep a good producer from starting his own relationship with the cluster?
 
I am requesting your help identifying clusters and cluster members so that I can speak to parties who would help me to ascertain which clusters are the better cluster operations to align with in this region.

I plan to align with a cluster in order to gain access to markets. More specifically, I intend to develop an agency (by leveraging the cluster alignment) to offer a haven for talented producers who would like to own ‘equity’ in their book but currently work for an organization that does not allow them to participate in the underlying value that they have created. I am a champion of the ‘little guy,’ and I believe this business centers around the talent and the relationships of these producers. I can underwrite capital requirements while non-competes run out.


In this process, if I find an opportunity to invest in a cluster (to expand shared services, for instance) then I will take a close look. Nevertheless, my primary purpose is to identify clusters (in Texas) to find one with the flexibility that I desire and with operators that I like.

Thanks!

I am in TX and I may be able to help but you don't have enough posts to PM yet, as far as I know. I think you have to have like 25 posts.
 
Just heard an interesting story about a cluster the other day when one agent found out "his" loss ratio with one carrier qualified him for a 80K contingency check...which he did notreceive because other agents in the "cluster" dragged the loss ratio with that carrier down.

As far as the question...if you're looking for a "cut" from your producers on top of the "cut" the cluster takes from you...what's in it for the producers? And what would keep a good producer from starting his own relationship with the cluster?

Arguably, your friend is in a bad cluster. Partners in clusters matter for exactly the reason you point out—if your cluster partner is writing bad business, it may come back to bite you. A good cluster will be well diversified and a loss to any particular market won’t hurt the overall profit share too badly. In some cases, the cluster may not be ‘bad,’ it may just be small and undiversified. Maybe that’s a distinction that doesn’t matter—a small, undiversified cluster is still a bad cluster!

Your question, ‘what’s in it for the producers’ is a good one. Let’s say you are a successful producer earning $200k+ per year. You have worked hard to build a book of business, but the book is owned by your employer. You know there’s value in what you have built, but you don’t participate except for your salary. If you left to start your own agency (aligned with a cluster), you would have to essentially punt your salary while your non-compete ran out because you couldn’t keep your book. So here is what I can offer:
  • I will underwrite a producer’s salary while he allows a non-compete to run out and while he rebuilds his book. You know that it is incredibly painful to fund a lifestyle when you are receiving no income!
  • I oversee the agency. Good producers don’t want to run the business, they want to produce more premium. I let producers focus on what they do best by running an efficient operation.
  • I offer the agents equity to reflect their hard work in developing their book.
I’m not looking for just any old producer. I will partner with (many) exceptionally motivated business people who understand that together we can build their wealth better than they can do so independently. Many of these producers have probably watched their employer get wealthy by selling their own equity. They get it.

Do you think this is valuable?
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I am in TX and I may be able to help but you don't have enough posts to PM yet, as far as I know. I think you have to have like 25 posts.

I'll see what I can do to build up my posts! Thanks!
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Check out Agent Secure. I currently use them and its worked out pretty well. They take a little cut off the top of the commissions but you own the client and its not expensive to sign up.
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Oh, maybe I misread your post. Are you looking to sign up with a cluster to gain access to markets??

I replied to your post, but I'm not sure if you read it. I placed it in the string. Let me know if you got it. Thanks!
 
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