Become a Partner Agency
"REMAIN INDEPENDENT, NOT ALONE" says it all about partnering with INSURICA. Our business is one of continuous change that presents new opportunities and challenges on a daily basis. Whether challenges are from competition, market fluctuations or the legal environment, INSURICA Insurance Management Network is here to stand beside its independent partner agencies. And when they have the opportunity to grow their revenue and profits, we are here to make sure they have the resources that they need to succeed.
Target Agency Profile
Retail Property and Casualty and Employee Benefits
INSURICA’s appetite for retail agencies is broad in terms of size. We will consider agencies with as little as $750,000 in gross commission income and have the financial capability and desire to complete transactions with agencies as large as $50,000,000 in revenues.
We are interested in both property and casualty and employee benefits books of business. Agencies that are specialized in niche markets such as transportation or construction can be particularly attractive, especially if that niche can be exported to other members of the Insurica Insurance Management Network.
INSURICA has a strong desire to add wholesalers, MGAs and MGUs to the group. In early 2005, INSURICA formed Global Intermediary Holdings and added Global Intermediaries of Eugene, OR as its first partner. GIE is a specialty wholesaler of self-insured retention programs for government entities. As with retail agencies, niche operations can be particularly attractive if the product can also be marketed by other INSURICA operations.
Whether you are a retailer or a wholesaler, there is one qualification for joining the INSURICA Insurance Management Network that cannot be overlooked. That factor is the availability of qualified management going forward. INSURICA is not in the "bailout" business and is not seeking agencies that have financial difficulties. Our Hands-Off Management Approach makes day-to-day oversight of troubled agencies a virtual impossibility, so operational excellence is paramount in our system.
Individual Producer Books of Business
INSURICA is also interested in attracting individual producers with existing books of business. The terms and conditions under which these books can be purchased vary greatly depending on the circumstances. Insurica strives to be the place where producers want to work and can receive a competitive package for moving and growing their book.
INSURICA Local Ownership Plan
Local management and ownership is an extremely important part of our partnership plan. Owners make better managers, make better decisions and have a stake in the successes and failures of any business. Our local ownership plan allows the on-site managers or producers to own up to a 49% stake in the business, giving them "skin in the game." Our relationship with our partners is one of trust and mutual objectives. We are seeking profitability, growth and quality customer service.
Our local ownership plan also serves the purpose of allowing our partners to remain independent. As a member of the INSURICA Insurance Management Network, you will maintain your agency name and identity in the local marketplace. Local owners also continue to make personnel and other daily management decisions. Insurica employs a Hands-Off Management Approach and has no desire to be involved in the day-to-day operations of our individual partner agencies.
Perpetuation Plans and Ownership Opportunities
Small Agencies (usually under $3,000,000 in revenue) are sometimes difficult to perpetuate because of their reliance on one person or a small group of people to carry on with the agency business. INSURICA will help ease the process of transferring agency ownership to the "next generation" while providing a financial guarantee that a selling owner will not get by perpetuating internally. INSURICA’s Enhanced Market Access and Revenue Growth Opportunities will also increase the value of the agency and boost the payout to the selling owner.
Large Agencies (defined as over $3,000,000 in revenue) on the other hand often have plenty of young talent, but have such a large value that internal perpetuation becomes thorny for financial reasons. For those agencies, INSURICA’s financial strength comes into play. With access to capital that will challenge all but the publicly traded brokers, Insurica has the desire and capability of helping agencies of up to $50,000,000 in revenue through their perpetuation issues.
Additionally, large agencies will benefit from the INSURICA Insurance Management Network, which provides our partners with greater access to key industry players and the financial capabilities to compete with the national brokers. For those agencies that are qualified and have the desire, Growth by Acquisition can also be a part of our mutual business plan.
Hands-Off Management Approach
The INSURICA Insurance Management Network is a network of highly successful, well-run agencies that specialize in core industries. We do not attempt to rehabilitate troubled agencies or agencies that are having financial difficulties. Our corporate management structure is very flat and does not have the capacity to spend inordinate amounts of time on local ownership issues.
From our local partners, we expect:
Honesty and fairness in their dealings with clients, carriers, and employees.
Adherence to applicable rules regulations and laws.
A focus on growth and profitability.
Commitment to our Core Values of Integrity, Attitude and Purpose.
In exchange for your acceptance of these principles, INSURICA promises to maintain its Hands-Off Management Approach:
You are responsible for personnel decisions - we won't lay anyone off.
You are responsible for compensation plans - they must be fair and profitable.
There is no requirement to centralize services - though some services are available as an option.
You may keep direct carrier contracts - when it makes sense.
We aren't interested in your dress code, your vacation schedule or your golf tee time!
Enhanced Market Access
Limited access to markets can impede an agency's growth and competitiveness. The INSURICA Insurance Management Network agencies have an advantage over their competition with widespread availability of carriers and unmatched relationships.
Last year, INSURICA placed coverage with over 400 carriers, brokers and specialty markets. With very few exceptions, our partner agencies have complete access to these markets on a direct basis and do not require any business to be brokered through a centralized marketing arrangement. In many instances, we have exclusive access to carriers and programs, which give our member agencies a competitive advantage.
Our large premium volume allows our agents to maintain excellent relationships with America's largest and most secure standard markets. We are considered preferred agents by a number of our carriers, which allows us to enjoy superior underwriting facilities, commission structures and profit-sharing agreements.
Revenue Growth Opportunities
Most of our local partner agencies enjoy substantial growth for the first few years after joining INSURICA. This is due to a variety of reasons, but most agencies find the following to be true:
- Access to more carriers allows them to write standard middle market business that they had not been able to attract in the past. It also allows them to move business back to standard carriers from E&S markets at higher commission rates.
- Enhanced market access allows smaller agencies to take back large local accounts on which they could not compete or that were previously lost to national or regional brokers.
- Our size and geographically spread volume improves both the size and the consistency of profit-sharing commissions. All profit-sharing commissions received by Insurica are distributed on a pro rata basis (minus a 10% corporate fee) to all partner agencies regardless of premium volume or loss ratio. Therefore, even if you produce only a small volume with one of our larger carriers, you will receive a share of the contingent commission.
Growth by Acquisition
For our agencies that demonstrate both the desire and capability, mergers and acquisitions within their own market area can be an excellent source of growth and a viable way to increase agency value. The INSURICA Network can provide both the capital and the expertise to help our agency partners complete these transactions. Of course, any acquisition would be required to meet the investment and performance criteria of other INSURICA Network partner agencies.
INSURICA Group Administrative Services
Being part of the INSURICA Network means you have a partner that is ready to help you out in many circumstances and ways. All members of our group have access to the following:
- Employee benefits, including a 401K
- Tax and legal advice
- In-house general counsel
- Accounting and information technology support
- Carrier liaison services
- Website development
- Creative and advertising support
- Group buying power for items such as printing and supplies, computer hardware and software and subscriptions such as Silverplume.
- Membership in outstanding trade groups, including the Council of Insurance Agents and Brokers and Assurex Global Partners.
- Global Premium Finance, our in-house premium finance company that also serves as a profit center for our partner agencies.
INSURICA Network Group Affiliations
Being part of the Insurica Network provides opportunities and privileges that are expensive even for large agencies and impossible to attain for small ones. We are proud of our affiliations with various industry groups such as:
The Council of Insurance Agents and Brokers - CIAB is a trade association of the leading commercial insurance brokers in the country. It is a source of advice in an ever-changing industry environment and an advocate for large agents and brokers on the most critical legal and regulatory issues of the day. It also provides vital information to our producers regarding market conditions and strategies for successful agency development.
Assurex Global Partners - Assurex Global is a select group of the most successful privately held agents and brokers in the world. Assurex Global provides a platform for shared services such as captive formation and worldwide risk placement. INSURICA is Oklahoma's exclusive member of Assurex Global Partners.
Independent Insurance Agents and Brokers of America - IIABA continues to be part of the backbone of the independent agency system. INSURICA is a proud participant and supporter of this system. The ranks of our producers and agency partners include multiple State Presidents, Executive Committee Members, Board Members and Committee Chairs.
American Fidelity Group - INSURICA is an affiliated company of the American Fidelity Group, providing insurance, banking, mortgage and other financial services to individuals and businesses.