In the current hard insurance market, carriers have temporarily paused or severely limited their new agency appointments to manage their existing portfolios effectively. This situation can be disheartening for independent agency owners trying to secure new direct carrier appointments – when they’re most needed. However, the benefits of agency networks are plentiful, even if immediate appointments are unavailable. Here’s how.
Relationship building
The best agency networks maintain strong partnerships with carriers, even during challenging market conditions. By becoming a member of a quality network, agency owners can leverage the network’s existing connections and rapport with carriers. Network representatives can advocate for agency owners, highlighting their strengths, market expertise, and potential value to carriers. This ongoing relationship-building can position agency owners favorably for future direct carrier appointments once the market stabilizes.
Placing business on your behalf
Joining a network that can place business on the agent’s behalf enables them to build a book of business that ultimately leads to a direct carrier appointment. This provides immediate income opportunities and demonstrates to carriers the agency’s ability to generate profitable business and manage client needs effectively. As the agency develops a strong business book through the network’s assistance, it becomes a more attractive candidate for a direct carrier appointment, showcasing its growth potential and track record of success.
Carrier insight
Quality networks have access and insights into carrier plans. While carriers may not actively appoint new agencies, they often share their future expansion strategies or provide early notification of upcoming openings with their respected partners. This information can be invaluable for agency owners as they can proactively prepare and position themselves among the first candidates considered once the carrier resumes making new appointments.
Continued education and skill development
A hard market period can be ideal for agency owners to focus on continuous education and skill development. Agency networks offer a range of training programs, workshops, and resources to help their members stay updated on industry trends, emerging technologies, and evolving customer needs. By investing in professional development during this time, agency owners can enhance their knowledge and expertise, making them more attractive candidates for direct carrier appointments when market conditions improve.
Market intelligence and preparatory guidance: Agency networks are well-versed in the insurance industry’s cyclical nature and can provide valuable market intelligence and preparatory guidance. They can offer insights into market trends, carrier preferences, and the anticipated timing for new appointments. With this information, agency owners can fine-tune their business strategies, expand their market presence, and refine their operations to align with future carrier requirements. This proactive approach positions them favorably for direct carrier appointments when the market rebounds.
Is FirstChoice, a MarshBerry Company, right for you?
Joining the right agency network during a hard market can provide agency owners with benefits that may not be available by going at it alone. FirstChoice is the premier network for independent agencies seeking direct access to top national and regional insurance carriers. FirstChoice is leading the next generation of aggregation – providing high-value resources, assets that enable independent agencies to scale their business, talent development support, and agency differentiation coaching.
