If you run a small insurance agency, you may be looking at what your agency is doing and wondering how you can help your agency. One way to do that is to join an insurance cluster. But what is an insurance cluster, and what are the benefits to joining one?
An insurance cluster is basically a group of small insurance agencies who have gotten together with the goal of mutual aid and support. You and the other agencies in your cluster are going to be able to do things as a group, while still operating singly. There are a lot of benefits to using an insurance cluster.
Greater Bargaining Power
One benefit is that you are going to get greater bargaining power than you might have as a small agency. The larger companies who may not want to deal with a really small agency are going to be more willing to work with several of those agencies who have gotten together into a cluster. On top of that, you may also get a better deal working with the larger insurance companies than you would be able to get if you were working on your own. For example, you may be able to get a better commission from those large insurance companies when your whole cluster is negotiating than you would be able to get with your own agency alone.
Networking with people who are in the same business as you is always a big deal. Making those connections helps your business for a lot of reasons. For one thing, if someone needs to have a particular kind of insurance that one agency doesn't deal with but you do, they can send that person over to you. But if you haven't networked and haven't made those connections in an insurance cluster, you are going to run the risk of missing out on those types of clients. Another reason that networking is a good idea is because you are going to be able to get tips from other agents as to how they handle a particular thing, and you can do the same. You may be able to get a mentor who can really help you learn your business even better.
For a small insurance agency, an insurance cluster can be the perfect thing to help that business grow. There are a lot of good reasons for you to think about joining one.Share