Quality Over Quantity?
As we start another year, independent insurance agents are reassessing their business strategies. Profit-sharing checks are arriving, carriers are adjusting their priorities, and agencies are asking a crucial question: How many carriers should we really work with?
At first glance, more carrier options seem like an advantage. The independent channel thrives on flexibility, and access to multiple markets can be a strong selling point. But here’s the reality—more carriers don’t always lead to greater success. In fact, too many carrier relationships can stretch your resources thin, making it harder to build strong partnerships that truly benefit your agency.
Why Too Many Carriers Can Be a Disadvantage
In the insurance world, relationships drive results. A solid carrier partnership means:
✔ Competitive pricing ✔ Underwriting flexibility ✔ Priority support when you need it
However, building these relationships takes time and consistency. If your agency is spread across too many carriers, you risk becoming just another number on their list. Carriers prioritize strong agency partnerships, especially with those who align with their target classes and demonstrate consistent production.
The right number of carriers depends on your agency’s focus:
- Personal lines agencies may benefit from a wider carrier mix but need to maintain production levels.
- Commercial lines agencies should prioritize strong underwriter relationships—clean, well-organized submissions matter.
The Financial Impact of Managing Multiple Carriers
Beyond relationships, the financial side matters, too. The more carriers you work with, the harder it becomes to:
- Earn contingency bonuses
- Maximize profit-sharing
- Meet carrier production minimums
- Earn premier commissions (In some instances, especially in Personal Lines, your commission rate is tied to how many new policies you write yearly.)
Keeping your business concentrated with fewer, high-performing carriers increases your chances of hitting key financial incentives.
Choosing Carriers with Purpose
This doesn’t mean you should limit yourself to a few carriers indefinitely. Growth may require expansion, but the key is intentionality—add carriers when they fill a gap in your offerings, not just because they’re available. And always ensure you have the time and resources to maintain strong partnerships with each one.
At the end of the day, it’s not about how many carriers you have—it’s about how effectively you use them. Deep, productive relationships will always drive better results than spreading yourself too thin.
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SIA of NC is a Master Agency of SIAA. Learn more about the SIAA Model: SIAA Model | Insurance Agency Network & Alliance | SIAA