Joining an insurance network can provide independent agents with valuable resources, support, and opportunities for growth. It can ultimately help you compete more effectively in the insurance marketplace. However, agents need to ask questions and carefully evaluate the benefits, costs, and terms of membership before deciding to join a particular network. Here are 10 questions an agent should consider before joining an insurance network.
Question #1 – “What’s the reputation of the network?”
Research the network’s reputation within the industry and among other agents. Investigate the network’s standing within the insurance industry. Look for reviews, testimonials, or feedback from other agents, carriers, and industry professionals. Online platforms can be helpful.
Assess the financial stability of the network. Look into its financial health and stability of revenue streams. Find out whether it’s been able to fulfill commitments to agents and carriers. Consider how long the network has been in operation and whether it has a history of stability and growth.
You may also find the network has received industry awards, affiliations, or certifications. These can indicate credibility and recognition within the greater insurance community.
Question #2 – “What products and carriers are available through the network?”
Ensure the network offers the insurance products and carriers you want to sell and associate with. Assess whether these offerings align with your target market and client needs by inquiring about the following:
Insurance Product Portfolio
- Range of insurance products offered, such as auto, home, life, health, commercial, and specialty lines
- Whether the products are competitive in terms of coverage, pricing, and features compared to other carriers
Carrier Partnerships
- Insurance carriers the network has partnerships with
- Reputation and financial stability of the carriers
- Whether the carriers offered through the network provide a competitive advantage
- Training and support provided by carriers, including sales and marketing
Knowing the available products and carriers within the insurance network ahead of time can help ensure agents have access to offerings that meet their clients’ needs and support their business growth objectives.
Question #3 – “What are the membership requirements and costs?”
It makes sense that sometimes you have to spend money to make money. That’s what marketing is all about, and that’s why an agent would join a network –for that added marketing support. However, it’s important to do your due diligence when considering joining an insurance network.
Make sure you understand any startup costs, ongoing membership dues, or other financial commitments associated with joining the network. Also, inquire about any quotas or performance requirements for staying a part of the network.
Question #4 – “What support and resources does the network provide?”
The network can be a great source of support for all kinds of issues. However, not all networks provide the same level of support. Find out what kinds of support the network offers. Then assess whether these resources will help grow your business effectively. Examples of network support are the following:
- Help getting new leads
- Marketing support
- Access to cutting-edge technology
- Back office support to help streamline your workflow
- Financing for acquisitions
- Access to training, mentorship, or discounted continuing education
Thoroughly researching network resources and support ahead of time can help ensure you’re a good match with the network you select.
Question #5 – “What is the compensation structure?”
Clarify how commissions and fees are distributed within the network. Understand the compensation structure to ensure it aligns with their financial goals and expectations. Here are key aspects to consider:
- Commission rates (flat fee per policy, percentage of premiums, or both)
- Bonus and incentive programs (programs offered by the network or carriers)
- Compensation dispute resolution process (steps involved in escalating and resolving commission-related issues with the network or carriers)
Independent agents should ensure they have a clear understanding of earning potential and any associated terms or conditions. This impacts the ability to make informed decisions about whether to join the network and how to maximize their compensation within it.
Question #6 – “What is the geographic reach of the network?”
Before joining an insurance network, be sure to evaluate whether the network’s footprint aligns with your target market. If they’re focused on the West Coast while you live in the Midwest, it might not be the best fit. Consider whether they have a presence in the areas where you operate or plan to expand. Here are some other aspects to consider:
- Carrier availability in different areas
- Knowledge of the local market(s)
- Support services in different areas, including marketing, training, and operational support
- Expansion opportunities
Understanding a network’s reach helps ensure joining it will effectively support your goals for expansion. That alignment is crucial for achieving long-term success.
Question #7 – “What are the contractual terms and termination policies?”
Review the network’s contract carefully. Pay attention to any exclusivity clauses, non-compete agreements, and termination conditions. Understand the process for leaving the network if necessary.
It’s understandable that your agency’s needs could change over time. The network itself may also change through mergers or acquisitions. You might find yourself wanting to leave the network.
However, be aware that some networks levy hefty fees for breaking the contract. Some may also claim partial ownership over your clientele.
Question #8 – “Can you maintain your independence within the network?”
Clarify whether you can still operate as an independent agent and maintain control over your business decisions while being part of the network.
- Determine who owns the client relationships and data
- Find out whether any restrictions are placed on client information post-membership or after leaving the network
- Evaluate whether you are required to use the network’s branding or if you can continue to market under your own brand
- Clarify the level of autonomy you have in choosing which carriers and products to offer your clients
- Find out whether you can independently make decisions regarding pricing, coverage, and servicing of policies
- Understand the terms and conditions for leaving the network, including any penalties, fees, or continuation of obligations post-termination
By thoroughly assessing these factors, you can determine whether joining a particular network will support your business while maintaining independence. It’s important to choose a network that supports both your growth and autonomy.
Final Thoughts
Asking these questions and carefully evaluating the responses can help an agent make an informed decision about insurance networks. It can help in determining whether joining a particular insurance network is the right choice for their business.
At ASNOA, we prioritize seamless onboarding experiences to ensure that every new member of our team feels supported and empowered from day one. Our comprehensive onboarding process is designed to familiarize new employees with our company culture, values, and operations, setting them up for success in their roles. Through mentorship, training programs, and ongoing support, we strive to cultivate a welcoming environment where every individual can thrive and contribute to our collective success. Join us as we continue to build a dynamic and inclusive workplace where talent is nurtured and opportunities for growth abound.