Since its founding in 2017, the Insurance Networks Alliance (INA) has played a key role in the evolution of insurance agency networks. These networks, once primarily focused on market access and enhanced compensation, have grown into comprehensive support systems for independent agents, according to Mike Strakhov (pictured), senior vice president - agency banking market leader at Westfield Bank.
Speaking to IB, he said that most industry leaders agree that the future of insurance networks will be shaped by strategic growth, technological advancements, and increased collaboration. Specifically, Strakhov pointed to discounted vendor services, specialized support in accounting, legal, financing and consulting, as well as partnerships with MGAs and wholesalers that allow agents to manage complex risks.
"Networks have given their members the ability to 'punch above their weight,' offering the ultimate insurance customer a broader range of coverage and services they would not be able to offer on their own," he said.
Here, the INA has positioned itself as a crucial facilitator in this transformation, fostering collaboration and strategic growth, adding that these gatherings provide an efficient platform for carrier partners to discuss strategic initiatives.
And this shift from loosely structured clusters to professionally managed organizations has also been a defining characteristic of modern insurance networks, according to Steven Charles Pearson, president of ISU Steadfast Insurance Agency Network.
"There has been a lot of growth around the year 2000," Pearson told IB. "Before that, there were clusters and small groups of agents consolidating business to negotiate better terms with carriers. But around the early 2000s, networks began aggregating books of business to carriers to improve underwriting, terms and access, increasing the power of individual agencies."
Pearson believes that, since INA’s founding, the rapid expansion of insurance networks has slowed, with consolidation now shaping the landscape. As a result, Pearson predicts that the number of networks will likely decrease, with strategic alignment taking precedence over expansion.
"If we fast forward to around 2017, there’s been more of a status quo and M&A activity. A lot of my group's competitors were purchased by private equity firms looking to combine organizations," he said.
The INA also plays an important role in supporting independent agents through education and technology adoption, particularly in the wake of the challenges in standardizing benchmarks across diverse network models. The INA has taken steps to assist members in making informed technology decisions by developing a dedicated department to analyze new tools, said Diane Wagner, VP of strategic planning and education for First Choice MarshBerry.
"Something the committee has been working hard on is what's the next iteration of education?" she said. "We know our independent agencies don’t have time to do it, so we do the analyzation for them."
Beyond technology, networking remains at the heart of INA’s value proposition. However, while new networks continue to emerge, the competitive nature of the industry makes it challenging for them to scale successfully. Ultimately, this reinforces the INA’s commitment to supporting its members through education, strategic planning, and networking opportunities.
"Obviously, networking is a slam dunk; our carriers love it because they get to see their biggest partners in one space, and we love it because we’ve just finished strategic planning with them and our members,” she said.
