"Over the last several years, agencies in the Garden State have faced increased pressure to retain their client base; many lack the markets to win against bigger agencies and have a density of competition unequaled in other regions," explains Michael Varvar one of CIA’s co-founders.
Insurance industry experts share the view that carriers have changed how they will do business with independent agents going forward. These agents have responded by creating a new entity that combines the benefits of a Master Agency with a management infrastructure that can assist agents with business development and operational service programs.
The model allows agents to maintain their independence, share services and cut operating costs while freeing-up principals and producers; allowing them to concentrate on acquiring new business, retaining clients and increasing revenue.
Over the years the two founding agencies have been recognized for their innovation in developing marketing programs and technology improvements that have boosted their growth and streamlined their operations. “While we are proud of our position,” Raymond Pavese states, “we felt what we were doing could benefit other ‘hometown’ agencies in meaningful ways. Several years ago we created a program we called Strength & Numbers that allowed other agencies to utilize our systems for greater efficiencies. The master agency cooperative was the final component tying it all together, Pavese said.”
Consolidated Insurance Agents is set to offer New Jersey agents several partnership affiliation methods. A handful of larger firms seeking equity positions are to be balanced with affiliates seeking the benefits of aggregating their premiums. These firms can leverage greater access to markets and benefit from realistic commission and contingency programs. “The response to our initial offering, launched on April 1 of this year has been overwhelming,” said Mr. Varvar, “we are handling dozens of calls a week.”