Independent agencies are built on independence, but that doesn’t mean they have to grow alone. Many agencies can hit barriers if they try to achieve organic growth by themselves. They need the right markets to serve a wider range of clients, strong carrier relationships to create new opportunities, and the scale to maximize the revenue generated by the business they write. For smaller and midsize agencies, however, it can be difficult to establish relationships with additional carriers when they may not have enough business to support a direct appointment.
“We’re kind of top heavy with our two big carriers, but there are times when we need other markets,” says Jared Morgan of Paducah Insurance in Paducah, KY. “We were looking for a program that would give us access to carriers when clients came to us with risks that didn’t align with our current carrier partnerships.”
That initially led Morgan to look for a market access program. What he found with FirstChoice went beyond simply providing access to additional carriers. By bringing together the business of its member agencies, FirstChoice can help agencies generate additional value from carrier relationships that might otherwise be difficult to maximize.
“FirstChoice’s profit sharing really helped seal the deal for us,” says Morgan. “As a member, we get profit sharing on carrier accounts where we would not be able to get that on our own.” He explains the profit sharing alone has returned four to five times the cost of his FirstChoice membership.
PIA National Brings FirstChoice to Its Members
PIA members now have an opportunity to explore those same benefits. The organization recently announced a strategic partnership with FirstChoice, naming it PIA National’s preferred agency network partner nationwide.
The partnership gives PIA members access to a suite of solutions designed to help agencies increase revenue, expand market opportunities, improve operational efficiency and support long-term growth, all while remaining independent. Agencies retain control of their carrier appointments, with commissions paid directly from carriers to the agency.
FirstChoice membership includes no non-competes or right of first refusal, as well as favorable exit terms. That flexibility was another important factor for Morgan. “They’re not tying you up. They’re not preventing you from getting carriers,” he says. “It’s a lot easier to get out if you want to get out, and that was important for us too.”
More Markets, More Opportunities
FirstChoice provides resources to help agencies place risks that fall outside their existing markets. “They have a risk placement team where you can submit accounts to them, and they can place it with a company that we have no relationship with,” Morgan says. “That’s been really helpful for us on the commercial side.”
FirstChoice can also support agencies that want to establish direct relationships with new carriers. For example, Paducah Insurance has worked with FirstChoice when pursuing several new appointments. While membership doesn’t guarantee an appointment, FirstChoice’s existing carrier relationships can give an agency additional credibility and help it navigate the process.
“They can give insight into the application process saying, ‘These are the things you want to think about,’” Morgan explains. “And because of their relationships, they can tell the carrier, ‘We know this agency. They do good work with us.’ That got us past some of the initial resistance.”
Support Beyond Carrier Relationships
The new partnership also gives PIA members access to resources that extend beyond compensation and market opportunities. FirstChoice offers agency technology consultation services, including reviews of existing technology systems, website and digital presence evaluations, social media and marketing recommendations, and guidance on emerging technologies and integrations.
Members can also access workshops and webinars, business analysis tools, dedicated Territory Leaders, strategic planning resources and FirstChoice’s In Motion Independent Agent Member Conference. Additional resources support producer and leadership development, talent recruitment, perpetuation planning, M&A education and target-market strategy.
“They’ve been a good partner for us,” Morgan says. “The relationships with the people that we’ve partnered with have all been very positive.”
To learn more about PIA’s FirstChoice program, click here.
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