View this article online: https://www.insurancejournal.com/magazines/mag-features/2019/09/02/538548.htm
The SIAA business model has been operating since 1983 in the Northeast and nationally since 1995. The organization operates with 48 local master agencies with over 350 associates across the country including 150 field personnel. Its size and scope place SIAA in a unique position to help agents meet their short- and long-term goals with custom solutions, Matt Masiello, CEO, told Insurance Journal.
SIAA serves independent agencies, whether start-ups or existing agencies, that are looking to increase revenue and growth. “We strive to support our members in achieving their goals from the stage at which they join, all the way through perpetuation or even maximizing value in a sale,” Masiello said.
“Our model seeks out agency principals who want to be independent, to represent carriers, to run their agency, to write and place new business, to service their business and grow in their community.”
SIAA provides national support in benefits and works with local master agencies to provide resources for members.
SIAA starts with three pillars: Market Access, Enhanced Income and Agency Development Services. “Within each of these pillars we have a proven process and programs including direct appointments, non-appointed market access, program, specialty and E&S markets, and all with enhanced revenue opportunities,” he said.
He said more than 95% of business is placed directly with markets by its agents.
SIAA members maintain their independent ownership in their book of business even when accessing markets through the network. “SIAA’s model serves to actually increase an agent’s independence, making them less reliant on market or carrier fluctuations or industry changes,” he said.
SIAA members can earn commissions and incentives on their books of business in multiple ways. “This includes access to the highest commissions available, local and regional incentives and profit sharing with the local master agency, national quarterly fixed compensation and national profit sharing,” Masiello said. All incentives are calculated and distributed with full transparency via the members’ portal.
According to Masiello, partnerships like SIAA deliver “tremendous value” for both carriers and agencies. “The services and benefits to the agencies, combined with the portfolio work with the carriers, puts us in a proven distribution position helping to evolve and fortify independent agency distribution into the future to the benefit of our member agencies, our partner carriers and the IA channel overall.”
SIAA has a five-year average premium growth with partner carriers of 14.9%, he said.
SIAA represents about 13% of independent insurance agents in the U.S. and works with partner companies in managing a portfolio of agents and books of business placed in over 50,000 agency codes.
Masiello believes agency networks like SIAA are here to stay. “Which ones make it, and which don’t, will really be the question for agents and carriers to ask themselves,” Masiello said. “Simply providing market access and some local profit-sharing aggregation is now the ‘price of admission.’ Anyone can do aggregation and agents can access markets in dozens of different models — it just depends on the model that works best for them.”
With a level playing field on market access, it comes down to the value proposition and operational execution of the network, he said. “Viable networks must offer proven services and benefits, not just to their agents, but also to their carriers,” he said.