MarketSource
MarketSource Agency Network, LLC
MarketSource is a cooperative network providing independent property and casualty insurance agents access to multiple carriers. A shorthand definition is “agency network”. MarketSource is structured much differently and is a better arrangement for agents than traditional agency clusters.
How is it structured?- MarketSource is owned and operated by the agents who use it.
- An offering was made to interested agents and more than 30 equity owners invested $15,000. each.
- These equity owners set the corporate structure and governance of the organization.
- Additional agencies applied to become "approved agencies." They will use MarketSource but not have an equity share, although opportunities to buy in might be available later.
How does it work?- Both equity owners and approved agencies place business for their clients through MarketSource.
- The client deals with their agent, and the agent deals with MarketSource.
- The day-to-day operations are handled by a general manager, underwriter and customer service representative.
- MarketSource makes sure the business being submitted meets the quality criteria and submits it to carriers available to the network on behalf of the agent.
- The agent receives the full commission on the business from the carrier.
- MarketSource is paid an "override" negotiated with the carrier for certain volumes of business.
What are the benefits?- Agencies have access to more carriers and carriers they can’t get appointments to represent.
- Agents receive the full commission from the business-unlike cluster arrangements.
- Equity owners receive profit sharing and contingency commissions.
- Agencies can remain independent and viable.
- Agents retain ownership of the business-they can move it from MarketSource.
- There are no fees to participate, unlike others.
- Agencies can network, learn from each other, build partnerships and options for agency perpetuation (finding new producers, mergers, acquisitions).
What is PIA’s role?- The idea for MarketSource was born out of the top issues facing agencies that we have identified.
- An internal PIA committee developed the concept and moved it through implementation.
- PIA staff has coordinated the start up.
- PIA is an investor just like the equity owners.
- PIA has provided materials, branding, infrastructure and office space.
- Agents MUST be a member of PIANC to participate and continue their PIANC membership.
Additional requirements for participation:- MarketSource seeks quality agents who will place quality business-no junk.
- Participants must carry $1 million errors and omissions coverage preferably with PIANC E&O markets.
- Agency must have a good loss ratio history.
- Agents cannot be a member of a competing network or a cluster.
- Fill out the required forms and submit to MarketSource for agency appointment (PIANC has no control over agency appointments with MarketSource).
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