The PIIB Difference
Independent agencies have many choices in network groups, clusters, affiliations, etc. It is not hard to find a cluster. They are everywhere. With that said, there are MANY differences between PIIB and other models. We are proud of our simple model that works. We are not interested in ownership or controlling your agency. Our goal is to help your agencies thrive. We advise any agencies looking into clusters to ask the right questions before you sign a contract.
|
PIIB
| Cluster #1 | Cluster #2 | |
|---|---|---|---|
| Accessing Companies | 100% direct access to markets | Direct access to some markets and central marketing for others | Central marketing for all companies |
| Cost | $850 monthly for all affiliates |
Fee plus % of commission Or Sliding scale fees based on volume |
% of commissions |
| Commissions | 100% paid to agency most directly by companies | Commission reduced by cluster | Commissions paid to cluster, cluster pays agency |
| Profit Sharing | 90% paid to agencies | 75% paid to agencies | No profit sharing paid to agencies |
| Bonus Commissions – New Business Bonuses | 90% paid to agencies based on their new business | 75% paid to agencies | None paid to agencies |
| Ownership of Affiliates | PIIB takes no ownership position in the agency or the agency's book | A percent of agency is owned by the cluster | Agency must offer to sell book when leaving |
| Termination Notice | 90 day's notice | Notice requires purchasing the ownership back from the cluster | 10 day's notice with 50% of commissions forfeited immediately after termination |
| Termination Penalties | No penalties | Agency prohibited from seeking direct appointments with clusters markets for two years | Agency continues to pay fees for two years on business written by companies represented by clusters
Don't get trapped!
|
| Cluster Ownership | Owned by 12 former and current PIIB affiliates | Partially owned by insurance company | Owned by a retail insurance agency |