In order to answer this question, I’d first ask you to put yourself in the existing members’ shoes.  One of the primary reasons any agency joins a network is to maximize or stabilize their agency’s profit-sharing revenue.  The idea is to aggregate the premium of many to better withstand losses that are the nature of this industry.

Getting back to wearing that existing affiliates’ shoes, if you were essentially paying a cluster to hopefully protect your profit sharing, would you want them to be mindful of the loss ratios of new members coming on board?  The answer, of course, is, yes!

Not all networks consider profitability to be their number one priority, and not all agencies do either.  Neither is wrong, but it’s important to recognize where profitability sits (in terms of priority) in your agency so that you can align yourself with a compatible cluster.

Last, if your loss ratio has seen better days, explore networks that are willing to help you implement practices into your agency to improve your loss ratio.  Luck is not going to turn your loss ratio around, but there are practical steps an agency can take to realistically improve their loss ratio.  Find the network that can help you do this.  A healthy loss ratio will unquestionably increase your agency’s revenue.

For more information on what PIIB’s exit clause looks like, please reach out to opportunity@piib.com.