The Changing Landscape of Insurance Networks
As the insurance industry continues to transform, networks and alliances supporting independent agencies and carriers must adapt. The modern landscape, influenced by economic fluctuations, technological advancements, and sector-wide challenges, demands that networks go beyond merely providing market access. Instead, they must serve as strategic partners, offering invaluable guidance, resources, and a sense of community.
Strategic Planning and Advisory at First Choice
For Diane Wagner, vice president of strategic planning and education at First Choice, a MarshBerry company, the cornerstone of network success is acting as a trusted advisor. Her focus is on helping member agencies develop strategic plans that encompass both short-term and long-term objectives. A crucial part of this strategy involves agencies understanding their metrics, documenting their goals, engaging staff in daily execution, and maintaining structured strategic plans. Regular reviews of short-term goals help agencies remain aligned with their long-term vision.
Navigating Economic and Technological Challenges
Beyond planning, networks play a vital role in assisting agencies to navigate the complex insurance environment, particularly amid economic changes and technological progress. Charles Pearson, president of ISU Steadfast Insurance Agency Network, emphasizes the importance of networks in filtering valuable insights and best practices to protect independent agencies from overwhelming market pressures.
“One aspect of an insurance network alliance is that the advisory board learns better practices and techniques and shares those in a way to help insulate the independent insurance agent from some of these powerful forces coming at them,” Pearson stated.
Pearson also stressed the importance of understanding economic trends. Networks can leverage these insights to guide agencies toward promising growth opportunities. “Some takeaways were that interest rates are likely to remain somewhat high, especially if tariffs are high, but there’s a huge need for housing, particularly multifamily housing,” he noted. “Networks can advise agencies to explore commercial habitation risk, as there’s building, growth, and funding in this area.”
The Role of AI in Modern Insurance
With the advent of artificial intelligence, networks are pivotal in helping agencies distinguish meaningful innovations from industry hype. Much like the introduction of personal computers in the 1980s, AI signifies a turning point for agencies. Networks must guide agencies in integrating AI efficiently, ensuring they remain competitive in an increasingly digital industry.
“An individual agency can’t possibly investigate each of those—they’re trying to run their business,” Pearson explained. “An expression I like is: ‘AI will not take your job. What you do requires too much discretion, too much thought, and too much prior experience—but someone who knows how to use AI will take your job.’”
Beyond Market Access: Evolving Network Services
For networks to stay relevant, they must evolve beyond just providing market access, according to Mike Strakhov, senior vice president – agency banking market leader at Westfield Bank. This evolution includes offering education, technology resources, and specialized programs tailored to agency needs.
“Networks understand that they need to provide an array of value-added services beyond market access,” he said.
According to Strakhov, networks are increasingly offering professional services such as E&O programs, niche-specific specialty programs, and M&A resources. This collaborative model ensures that agencies have access to collective problem-solving and shared successes. “Many have built a strong community among their members where members help each other build better agencies,” he added. “The ‘all for one, one for all’ concept speaks to the mutual benefit of membership in a group, and one member’s success is shared by the group.”
This sense of shared resilience proved particularly valuable during the hard market, underscoring the significance of networks. “The hard market was a great opportunity for networks to shine as they can solve problems as a group, find solutions much more readily than an agent can on their own, and learn from the efforts of others what is working and what isn’t,” Strakhov said.
As agencies encounter new challenges and opportunities, networks must expand their role to serve as strategic advisors, technology navigators, and facilitators of collective success. By offering tailored strategic planning, filtering industry insights, and fostering collaboration and problem-solving, independent agencies are not alone in their evolution. Those that harness the comprehensive support from their networks will be best positioned for long-term success.
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