Today is a great time to be an independent agent, but running an independent agency is not easy. Without an awareness of how the industry is evolving, and having access to ongoing training and education, you may not be adequately preparing for the future. If you are too busy handling day-to-day business so there is no time to work on growth simultaneously, you could lose your current and potential clients in a hurry.
Whether you are a captive or independent agent you need a solid foundation. Ask yourself: Are you a well-known professional in your community? Are you working with carriers that meet your clients’ needs? Are you technologically savvy with a fully automated office? How about a year from now? You need to know how you will drive growth and profitable results in the long term and, with the prevalence of innovation and technology impacting the industry, how to evolve as the industry does.
In this context, you may do better as part of a larger team. Many independent agents are joining alliances/networks, clusters and aggregators to generate more revenue, while experienced producers may join to follow their dreams of opening their own independent agency. If you’re considering joining one of these organizations, remember the saying, “Only fools rush in.” If you don’t have the answers before joining, you may regret it in the long run.
That’s why it’s important to thoroughly research the differences between the options you’re considering. Here, I will focus on the questions you should ask to make the best choice and to understand the majority of services available to an agent today.
Networks
Networks are valuable in many ways. They can provide a path to building your business, help insurance professionals to own and operate their own independent agency, provide extensive training and education to build personal, commercial and specialty income, and help carriers and independent agents grow, helping the distribution system overall.
When evaluating networks, first, understand where your business is today. Before you sign any contract, get granular and review your agency by examining your Strengths, Weaknesses, Opportunities, and Threats (SWOT analysis):
- Is your book of business solid?
- Have you built a recognizable local brand?
- Do you have the technology to interact with clients through multiple channels?
- Are there weaknesses that stand out and how are you addressing them?
- What opportunities do you have that you have not yet explored?
- Are there threats to your agency’s survival such as increased competition or high turnover?
Remember, any worthwhile network/alliance will also perform their due diligence on you and your agency. Recruiters of a quality network will examine your history and production to ensure you have the skills, experience, etc., to succeed. If they don’t, you should question the potential impact of their other members on the organization as a whole and your agency. They should also work with you to identify areas where their organization can help you meet your needs and goals.