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... personal lines business. Smaller, rural agencies seem to make some profit in ...slack left by the exodus of so many carriers from the personal lines market. W...

... cluster you enter into depends on what you feel most comfortable working with. If it's independence you value, you should probably choose a less structured cluster. REASONS FOR CLUSTERING Clusters have a number of advantages and disadvantages. Generally, clusters offer the most to smaller and rural agencies whose carriers are demanding more from them than they can produce. Clusters can provide: Increased premium volume-Increased premium volume means an increase in an agency's clout with its carriers. Carriers may demand $500,000 or more in premium volume from agencies-something many rural ... takes a lot of thought, time, and effort, but you have the satisfaction of creating a cluster that suits your needs. However, you should be prepared to make some compromises along the way. JOINING A CLUSTER Joining an existing cluster may be an easier route, but depending on where you're located, it might be difficult to find such an arrangement. You may find no existing clusters in your area, or only one. If you have a choice, first identify which cluster culture might best suit your agency, ... of other great articles. Need more reasons to join? Need insurance for you, your business or your family? Get quality appointments - Save yourself a whole lot of time & money when you use our directory of carriers, wholesalers and service providers. Negotiate lucrative contracts with carriers and wholesalers. Net result. More revenue for your agency! Clients & Prospects will research you, your co-workers and your agency here. The most comprehensive online insurance industry reference library for - Personal Lines Professionals Commercial Lines Professionals Life/Health & Benefits ...

...ters offer the most to smaller and rural agencies whose carriers are demanding...ir biggest advantage.) If so, which carriers presently exist, and are you accepting any new carriers? 3. What staff, equipment, and so...

... new producer: If the agency is located in a small town, find a self-starter who wants to stay in the community, and train him or her in insurance. Company field reps or underwriters from hundreds of miles away have no local connections are often uncomfortable in rural communities. Give the person some accounts to handle to provide a basis for referrals and some meaningful initial work activity. Treat a salary as a draw against future commissions produced (not a guarantee), make sure that the producer knows what he/she must ... , another salesperson must be brought in. But the money to fund that person must come directly from the owners' compensation or profit. The choice becomes one of expanding the agency or retaining the owners' current standard of living. Most owners willingly choose the expansion route at first, but after several false starts with young producers who do not work out, it's easy for them to become discouraged. Unfortunately, without a new producer, internal perpetuation opportunities will be limited-if not nonexistent. The absolute No. 1 requirement of a ... managers do not have the entrepreneurial spirit to take on the risk of ownership the way many (although not all) sales-oriented people do. Also, without a new producer, there will be little growth, causing the insurance companies to become dissatisfied and possibly terminate the contracts that are necessary to keep the agency competitive. Eventually there may be nothing left to perpetuate. So, for the owner of an agency of this size (generally $300,000 to $500,000 in revenues), hiring a new salesperson is ...

...ar. Nowadays, most people, even in rural areas, prefer to call in the informat...rface or e-mail communications with carriers is critical to the center's succe...

...ections are often uncomfortable in rural communities. Give the person so...