Insurance Clusters 101

January 28, 2015
By: Voldico

If you are a private insurance agency, you may benefit from joining an insurance network or “cluster” with other agencies. Insurance clusters like Voldico provide membership benefits that often surpass what you can gain individually.

The insurance industry has become extremely competitive and many independent agents are overwhelmed with trying to manage all the moving parts of their business. Your agency should run like a well-oiled machine, not a bottleneck. With the membership benefits of a top-notch insurance cluster, you can focus on selling insurance and providing outstanding customer service.

Read on to decide if an insurance network like Voldico is the right thing for your agency.

What Is an Insurance Cluster?

In the insurance industry, agency cluster groups (also known as alliances, networks and aggregators) are formal associations of insurance agencies established to provide “members” with mutual support and group benefits.

Top 5 Benefits of Joining an Insurance Cluster

  1. Access to carriers. Clusters offer collective bargaining, which helps smaller agencies gain access to carriers and products, allowing them to provide customers with what they need.
  2. Better commission structures. The commission structure is different with each market, carrier and line, but affiliation with a good cluster can help you get access to the best commission and renewal arrangements out there.
  3. Improved profit sharing. Most groups have profit sharing contracts with their carriers.
  4. Products and services to increase competitiveness. Some clusters provide members with business tools, products and services, (like payroll processing, business marketing support, etc.)
  5. Connect with other industry professionals. Clusters provide you with a way to connect with other agencies. Sometimes the best ideas and strategies come from other experienced agents.

Why Join Voldico Versus a Competitor?

When making a decision to join a cluster or network, keep in mind that Voldico offers the same membership benefits as our competitors and then some. Here is a quick list of a few benefits Voldico offers that some of our competition lacks:

  1. ZERO membership fees! Instead of charging you a flat fee for our services, we take a percentage of the commissions you make from writing policies. In other words, we don't make money unless you make money.
  2. Walk away at any time. Our contracts are non-binding because, once you become a member, we're confident you'll want to stick with us.
  3. Access to leading insurance carriers, including health carriers. We can help you gain access to a greater number of well-known and trusted insurance carriers.
  4. Streamlined backroom operations. We can provide full operational support, including payroll system management, data entry, claims services, accounting, profit/loss reports, monthly reports, acquisition and conversions strategies, and management services.
  5. And much more! For example, we also offer sales and marketing support, agency start-up and financing, training and professional development and agency council and networking.

If you would like more information about Voldico membership benefits, check this page out or call us toll free at 866-341-2674.