Insurance aggregators are made up of insurance agent members. Typically, these members join an aggregator to get access to insurance carriers they might not be able to get on their own. The aggregator combines the premium written by each member to obtain growth bonuses and profit sharing from the carriers they are appointed with.
As an example, let’s say an exclusive insurance agent has the permission to write business with other carriers. Where do they start? Do they contact each carrier individually? Do they have the premium volume to satisfy the requirements of the carrier? Using an aggregator alleviates these challenges.
In addition, aggregators can provide additional resources for training, producer hiring, product discounts, and assistance in market placement.
Ultimately an aggregator provides the benefit of a group versus going at it on your own.