Aggregation Can Create Scale and Growth Opportunities
SSIIAA Members Discuss Strategies for Agency Growth
WEYMOUTH, MASS — Aside from gaining access to markets and participating in profit sharing, aggregators, clusters and alliances should be helping member agencies grow, according to Renaissance Alliance's Heather Cochrane Russo, VP of public relations and development, and Michael Cooney, CIC, VP of agency recruitment. Cooney told members of the South Shore Independent Agents Association that "the purpose of an aggregator has to go beyond a financial consideration. It has to help agents grow."
Cooney told members of the South Shore Independent Insurance Agents Association that “the purpose of an aggregator has to go beyond a financial consideration. It has to help agents grow.”
Growth is a term that means many things to many people and can be measured in numerous ways — premium growth, revenue growth, policy count, net income, etc. All aggregations are fueled by premium growth, noted Cochrane Russo. At their core, aggregations center around creating scale. From a premium standpoint, scale can move agencies to a higher profit-sharing tier, which could lead to earning overrides. With scale, also comes opportunity.
Reprinted by permission of Standard Publishing Corp. © 2019