After some difficult years, independent insurance agents are glimpsing relief from the hard markets. The Insurance Information Institute reported last month that, driven largely by premium increases, the combined ratio for the property-casualty insurance industry fell more than five points in 2024 to 96.6, with both the personal and commercial lines segments falling below the 100 level.
Those premium increases and the reduced competition that made them possible have made serving clients challenging for agents. Many have turned for help to agency networks.
Smart Choice, a network boasting more than 10,000 agency members, bolstered its carrier and product lineups in 2024, says Chief Marketing Officer Dan Bruck. They added eight new markets in personal, commercial, and “Express Markets,” and expanded existing relationships to offer more products. They now have more than 100 carrier and wholesaler relationships. The Express Markets division is for hard-to-place, excess and surplus lines, and specialty risks. “Within this vertical we have over 40 carrier partners that can place almost any type of business,” says David Wilson, senior vice-president, specialty markets.
California-based Pacific Interstate Insurance Brokers (PIIB) has been able to expand market access in that state despite the very difficult market conditions there. The network has done it, says President Tiffany Bertolini, by prioritizing agency performance. “We don’t affiliate with every agency on the block,” she says. “Instead, we prioritize profitable, stable growth, which puts us in a strong position with carriers and opens doors to new market access opportunities.”
Dark Horse Insurance Brokers in Arizona took a targeted approach, looking for new carriers in each market. “We also picked up additional markets based on our individual agents’ needs and specialization,” says Marketing Strategist Travis Schenck.
Smart Start, Smart Choice’s wholesale operation for personal and commercial, gives agencies immediate access to standard carriers without requiring direct subcode appointments. Eventually, Bruck explains, agencies who build up books with a carrier may get subcodes and become brokers of record for their policies.
PIIB gives new agency members individual onboarding attention. This includes reviews of their books and recommendations of markets based on their portfolios and goals. Bertolini says, “This personalized process helps agencies gain access faster and positions them for long-term success with the right carrier partners.” Dark Horse teaches personal lines-only agencies how to expand into the commercial segment.
Bertolini says personal lines remains a challenge, and the Los Angeles wildfires in January didn’t help. “Our sales lead, Rachel McClurg, receives about 10 calls a week from prospective agencies looking for help in personal lines,” she says. PIIB strives to strike a balance between maintaining strong carrier relationships and supporting agencies. Smart Choice is supporting carrier profitability initiatives to reinforce its value to them and position its agents for priority when carriers resume making subcode appointments.
Carol Drake, senior vice-president, personal lines at Smart Choice, urges use of comparative raters to stay current on carrier changes in appetite, billing options, and coverage offerings. Bertolini advises agencies to underwrite networks before deciding to join them, looking for those with strong, trusted carrier relationships. “That relationship directly impacts your opportunities.”
Mark Brandt, Smart Choice’s vice-president, commercial lines, says that understanding carrier appetites is key. Collaborating with the network’s territory managers, carrier field representatives, and using Smart Choice’s programs will give agencies access for nearly any risk.
Schenck advises agencies to carve out niches and try new things. “Agents are having success even in a challenging market,” he argues, “and when the market shifts back, you will be that much stronger of an agency.”
Agency networks have been there to support agencies in good and poor markets. Joining one of these networks may reap future rewards for your agency.
