If you are a small insurance agency, you may be worried about what you can do in order to keep your small agency going and maybe even growing, if at all possible. One of the things that you might do is to join an insurance network. Before you make the decision as to whether or not you are going to join a network, you need to know what some of the benefits are so that you can decide whether or not they work for you.
One of the benefits of working with an insurance network is that you can start making contacts with other insurance agencies that are like yours: small, independent agencies. The nice thing about making contacts is that you get various ideas as to how to help your agency stay in business and even grow. Another benefit to networking is that the relationships you build up with other agencies may also help get you more business. If another agency in your area gets a customer who needs a specific kind of insurance, like medical malpractice insurance, and that agency doesn't deal with that kind of insurance, but your agency does, they can refer that customer over to you.
2. Better Bargaining
Another benefit of working with a network is that it's going to give you better bargaining power when you are trying to get better rates from the large insurance companies. You don't have a lot of bargaining power on your own because you represent a very small percentage of sales. But, if you are part of an insurance network that is made up of 99 other independent insurance agencies like yours, then you are going to have a lot more power, and it will represent many, many more sales to the insurance company, thereby increasing their profits. That is more likely to get them to give you better rates and returns for your agency and your customers. You will also be able to contract with different insurance companies that you hadn't been able to connect with before because of your small size.
If you have a small, independent insurance agency, you know that business can be hard. There are different ways that you can make it easier on yourself and help your business succeed. One of them is to join an insurance network. Knowing what the potential benefits are to you can help you decide whether or not it's the right step for your agency.