The Pros and Cons of Joining an Insurance Cluster

1. Pros and Cons of Joining an Insurance Cluster or Network

2. “ Is joining an insurance cluster or network the best solution for your independent agency? ”

3. The insurance industry has become extremely competitive and many independent agents are overwhelmed with trying to manage all the moving parts of their agency. Some agents are even struggling to keep their heads above water. If you want to remain in business for years to come, your agency should run like a well-oiled machine, not a bottleneck. With the membership benefits of a top-notch insurance network, you can focus on selling insurance and providing outstanding customer service, without losing your status as an independent agent. 

4. What Are Some Benefits of Joining an Insurance Cluster? Greater access to desirable carrier markets Through collective bargaining efforts, networks offer a viable solution for agencies to acquire markets and services through attractive carriers to which they might otherwise not have access. You remain an independent agent. Though you are joining a cluster or network, it is not like a merger or acquisition. You remain an independent agency, you continue operating under your current company name and appointments, you receive commissions directly from your carriers and you retain your current marketing and underwriting contacts Access to top-tier marketing and sales support. Some networks, like prospectsforagents, provide full operational support, including payroll system management, data entry, claims services, accounting, profit/loss reports, monthly reports, acquisition and conversions strategies and management services. Networking and information sharing with like-minded professionals. With some insurance networks, you have the opportunity to participate in networking events like conferences, annual meetings and user groups.

5. What Are Some Disadvantages to Joining an Insurance Cluster? • Inferior leadership and direction at the top level. • Membership fees and penalties. • Lack of common goals and vision among members • Separation challenges.

6. Inferior Leadership and Direction at The Top Level.  In order for a cluster or network to be successful, the managers and leaders at the top need to work together as a team and make decisions that have the network’s best interests in mind. 

7. Membership fees and penalties. Since each network contract is unique, and probably a little confusing, agents must invest the time to understand what they are getting into—in other words, read the fine print!

8. Lack of Common Goals and Vision Among Members When you join a network, you join a partnership, but there is no formal “commitment.” When a network member leaves with their book of business, a void is created with markets and/or shared expenses. This could be fatal to a small cluster or network. It is important that all members share a common vision for the cluster and are willing to put in the time to make it succeed.

9. Separation Challenges Walking away from an insurance network can sometimes be difficult. In fact, it is the number one challenge reported by industry experts and agents involved with networks.

10. LET’S TALK CONTACT INFORMATION Website www.prospectsforagents.com Phone Number 1-866-701-1558 Email info@prospectsforagents.com