Insurance is a concept that has been used for many hundreds of years. Starting from as early as the second and third millennia BC and used by Babylonian and Chinese traders respectively. It is a valuable and vital means of protection that is used to shield against financial loss.
What is an Insurance Agency Network?
An independent insurance agency network is a conglomeration of many different insurance agencies. Being a private insurance agent or working for an insurance agency requires a vast array of knowledge about insurance as well as a large client base. Building this client base and the knowledge needed about insurance can be quite an undertaking. So insurance agency networks are there to help these private individuals or agencies start, build and grow an insurance business.
Being included in a network of insurance agents comes with many perks. You are still allowed to maintain your independence and operate as a separate company from the network. The network will provide you with three other important aspects that is needed to be successful in the insurance game:
The first of these aspects is that of scale. An insurance agency network provides a private agency with connections to companies that need insurance and this broadens the kind of business you can add to your book, the kind of business in which you specialize and you are also able to take part in the unique training programs that many insurance networks provide.
The second aspect that you are provided with is that of access. You are allowed access to all the markets that are part of the network. So an agent or independent agency that wants to become part of a bigger organization may join one of these networks and through the network be able to write business with insurers where you would never otherwise have access.
The third aspect is that of flexibility. This means that you get to choose what you want to get out of the network, joining it does not require the you to do anything compulsory, you may choose what is right for your business.
So, the primary reasons for agents or agencies to join a network is that of access to new markets, business continuity, profit sharing opportunities, marketing placement or marketing assistance. The client agency has its choice of what it wants to use the network for and are not made to do anything that they feel is not in the best interests of their agency.