If you have considered joining an agency network, you have undoubtedly visited Insurance Journal to see how each one ranks amongst the rest.
Each year, Insurance Journal publishes a list of the top 20 agency partnerships ranked by property/casualty revenue. It is critical to your agency’s long-term success that you define what ‘partnership’ means to you. While revenue is extremely important, a true partnership will include much, much more. Figure out which network aligns best with your agency values and future goals. Important questions to ask yourself when researching the best partnership for your agency may include:
- How much of the network’s revenue (contingency/commission/overrides) is shared with affiliate members? Do they invest back into their model?
- Does the network advocate for its’ affiliate members?
- Do they offer training or education (for new and/or existing affiliate members)?
- Do they negotiate discounts with preferred vendors?
- Do they have a perpetuation platform that is conducive to your agency’s plans? (i.e. do they have first right of refusal, an exit fee or can you sell to whomever you like?) To add onto this, joining the right cluster can maximize the multiple you get when you sell.
- Do they take ownership of your book? How much control does the network have in your operation?
- Does the network track and take profitability seriously? Profitability of a network overall is very important in earning those top tier payouts from carriers.
There are countless number of networks out there, each serving different profiles of agencies. It is just as important to interview each as it is to have a strategic business plan, so that you know which model will serve your agency best.
Call PIIB today to find out more about how we can be the best partner for your agency!