An organization that acts as an intermediary between insurance carriers and independent insurance agents or agencies is central to understanding distribution networks within the insurance sector. These entities provide crucial support, resources, and often access to a broader range of insurance products than an individual agent might secure independently. For example, an agent seeking to offer diverse life insurance policies might affiliate with such an organization to gain access to multiple carriers and competitive rates.
The value of these organizations stems from their ability to streamline processes and offer economies of scale. They provide agents with training, marketing materials, administrative support, and technology platforms, enabling them to focus on client acquisition and service. Historically, they emerged as a way for smaller agencies to compete with larger, captive agency models, offering independence with the backing of a larger network. The benefits extend to carriers as well, who gain access to a wider distribution network without the overhead of managing individual agent relationships directly.
