LionStreet: ROAD to INDEPENDENCE White Paper - Flipbook - Page 6
THE ROAD TO INDEPENDENCE
4
E VOLU T ION OF T HE
INDEPENDEN T FIRM
According to a LIMRA and National Underwriter survey of 725 independent insurance
professionals,1 three reasons Firms switched to independence were to:
• Serve the client’s best interest
• Access a wide range of products, services, and carriers
• Create commercial value in their business
Brokerage General Agency
The initial step many career agents take who desire
independence is working with a Brokerage General Agency
(BGA). The BGA can function like a fully operational back
office for the independent agent, similar in that way to the
career company, but with much more flexibility. However,
while the traditional BGA model does offer a broad
selection of carriers, it does not provide direct access
to them.
THIS MEANS PRODUCERS
HAVE LESS INFLUENCE
AS WELL AS A LIMITED
ABILITY TO AGGREGATE
PREMIUMS TOWARDS
POOLED OVERRIDES.
Joining a Producer Group
However, in the last 20 years, the most successful independents grew their business by joining
a producer group. As part of a collective, they remain independent, but not alone. They enjoy
not just flexibility and choice for their customers but also greater influence and scale.
The value of being part of a producer group is significant. It provides access to resources that
support and help you grow your business. It brings together like-minded producers. As an
equity owner, a producer has input on how the producer group is managed and isn’t subject to
the dictates of a career agency.
Through access to subject matter experts and knowledgeable professionals in advanced
markets, a producer can offer clients the best options for their specific needs. And because
of the network of specialists and skills offered through these Firms, a producer is, in essence,
able to expand their services without having to assume more overhead. This increased scale of
services can result in exponential revenue growth for the independent producer.
1. LIMRA, The Path to Independence, 2015