Do I need a cluster?

[marindependent]

We don't have a commercial carrier at all

OK that is a lot or req. A cluster might be a solution for you, but it might not be. I would make sure you read all the contracts, understand who owns the business, and how to get out of it [first and foremost.] Yes some clusters have rating tools, but frankly you should go get your own rating tool and keep it in house. And the rating tool frankly is only going to help you with personal lines.

Your agency is large and historical enough that you should be able to get appointments yourself easier than many/ most. You may have luck approaching a classic Preferred Insurer that handles your state and offering to partner with them: Travelers, Kemper, etc. Im not sure dont know your clients. If and when you use a cluster you often lose some of the comp, but in return you get access to more options. That all being said your agency could probably absolutely have a couple of its own appointments by yourself.

Best of Luck

 

[shawnmwalker]

There too much to discuss here. Lets see. Clusters, Groups, aggregators are all the same. they just go by different names. I would suggest you need a group to help. Have you courted any carriers yet? Lots of great carriers working in OK.

 

[Mandrews60]

Honestly we don't have an idea where to begin. I'm just wanting to grow the agency to help with my life and health, and maybe cross-sell some policies also. I'm not for sure what carriers are competitive in SE Oklahoma and haven't reached out to any in almost 10 years. I think with the longevity of the agency, it could potentially become a much larger agency with a little work.

 

[shawnmwalker]

Well, watch a few of these: Industry Videos – Premier Group Insurance (pgiagents.com)

If you need to talk it through with someone. or have questions. Call me. I'll point you to a few options.

 

[Markthebroker]

As you talk to carriers, usually they have requirements of how much premium you need to write with them, and right now carrier contracts are harder to get signed with, especially in my area. I am commercial California, and you are personal lines OK, so who knows, things might be different. You may find a cluster is the way to go for your agency, and there may be some direct carriers that make sense to sign with, too.

 

[shawnmwalker]

^^^^ he's got a point! Hes a sharp guy!

 

[Mandrews60]

Well, watch a few of these: Industry Videos – Premier Group Insurance (pgiagents.com)

If you need to talk it through with someone. or have questions. Call me. I'll point you to a few options.

Thanks for giving me the option to speak with you. If you've got a chance, I would like to talk to you sometime about options with a cluster. After a lot of reading and looking around, I feel like that is the best move for our agency going forward. Thanks for the help.

 

[Bill Billock]

I would be happy to answer any questions coming from someone who made this decision about a year ago after being a corporate producer for a large independent agency. I went the cluster route and can honestly tell you I have had zero regrets. The pros have far outweigh the cons. Pm me if you want to chat. I'm In rural Texas so our demographic is likely similar.

 

[shawnmwalker]

This is a fun edited version:
Insurance, You Indemnify Me: Season 2 Ep.6 **30 MINUTE VERSION** Jeff Holtman, Agency Owner. - YouTube

 

[Annie H]

Great post! Do you or anyone know Renegade? What's the pros and cons to join the group for the P&C line?

Well you have a decision tree here. I'll lead you down one path, but it is biased.



"Begin with the end in mind"- 7 habits of Highly effective people.

Decision #1:



What end of the Ins Spectrum do you want? if you answered P&C keep reading. If ''Other" wait for the others to respond



Decision #2: Captive or Independent.



Captive:

Pro: They will teach you a lot but inevitably you will go Indy at some point in your career. Another Pro, they will subsidize your life for a time.

Con: The District Manager will push too hard or force life on you or cut your commissions or change your contract, or, ext, ext. Your Captive will take rate increases and kill your production and you will have one price point while others dissect your book one policy at a time.



Independent: :

Pro: Control expenses. Get higher commission. Higher conversion. Higher retention. All of those factors equal more money.

Con: Starting out. Getting knowledge. Your personality type could sink yourself.



Decision #3:



Once you decide Indy is for you, in the next week or 22 yrs from now. The question will be how to do it. Your options include:



Buy an agency.

Join a group.

Become a producer for an agency.

Get direct appointments.

Get an agency that provides the back end service so you can hunt full time.



You decide which one is best for you.





Decision #4: What group should I join?



There are a lot. Consider the following. NOT ALL GROUPS ARE CREATED EQUAL! They range from good, better and best.



Any group claiming to be best of class should provide the following:

1. Transparency
2. Training and support
3. Carrier Alignment
4. and a great Contract

I have been in Insurance for 18+ years and the great thing in this industry is you can choose to never stop learning. Your learning curve is never ending. Meaning you will never get bored.