Networks help lay foundation for
new and growing insurance agencies
By Mike Strakhov
Photos provided by The Insurance Network Alliance
In the evolving landscape of insurance distribution, agency networks have emerged as powerful incubators for aspiring agency owners. These networks—often referred to as clusters, alliances, or aggregators—offer a unique blend of support, resources, and strategic partnerships that empower producers, industry professionals and current captive agency owners to transition into independent agency ownership with confidence and capability.
At their core, insurance agency networks provide a collaborative environment where member agencies can access markets, mentorship, and operational infrastructure that would otherwise be out of reach. For many, joining a network is the first step toward building a book of business under their own brand, while benefiting from the collective strength of a larger organization.
Not all insurance agency networks target startup agencies for membership, but many do, providing the foundation to get started.
Access to markets and carrier relationships
One of the most significant barriers to entry for new agency owners is securing appointments with top-tier carriers. As a former marketing and branch manager for two national insurance companies, the likelihood of appointing a startup agency was almost zero.
Mentorship and professional development
Agency networks often foster a culture of mentorship, pairing emerging agency owners with seasoned agency principals. This relationship is invaluable, offering guidance on everything from underwriting and sales strategies to compliance and agency management.
Many networks also provide structured training programs, leadership development tracks, and peer-to-peer learning opportunities that accelerate professional growth.
At their core, insurance agency networks provide
a collaborative environment where member agencies
can access markets, mentorship, and operational
infrastructure that would otherwise be out of reach.
Operational support and technology
Launching an agency requires more than just selling policies; it demands robust operational systems. Networks frequently offer support and direction on critical services such as agency management systems, quoting platforms, marketing tools, and back-office support. These resources reduce overhead and streamline operations, allowing new agency owners to focus on growth and improve their administrative processes.
Several networks have expanded their value proposition to members to include discounted access to consultants and vendors that specialize in legal, accounting, valuation firms and financing.
Financial stability and growth incentives
Some networks offer financial models that ease the transition into ownership, including commission splits, profit-sharing arrangements, and even equity opportunities. These incentives not only make agency ownership more attainable but also align the network’s success with that of its members, fostering a mutually beneficial ecosystem.
For agencies that are interested in growing through acquisition, networks provide an opportunity to meet other like-minded members who may be interested in selling today or at some point in the future. Some have gone as far as creating a forum to introduce buyers and sellers within their network to foster those transactions.
A launchpad for independence
Perhaps most important, agency networks serve as a launchpad for independence. While members benefit from the network’s infrastructure and support, they retain the autonomy to build their own brand, culture, and client relationships.
Over time, many agencies evolve into fully independent agency owners, equipped with the experience, confidence, and resources gained through their network affiliation.
Conclusion
Insurance agency networks are more than just business alliances—they are incubators for the next generation of agency owners. By lowering barriers to entry, providing critical support, and fostering a community of growth, these networks are shaping the future of the insurance industry one entrepreneur at a time.
The author
Mike Strakhov, CPCU, and Insurance Networks Alliance co-founder and Advisory Committee member, is senior vice president and agency banking market leader at Westfield Bank.
