SIAA and ICA Agency Alliance, Inc. offers not only great income potential, often higher than receiving 100% of the gross commission, but also an array of products, training, promotional and other benefits. Since 1983 SIAA has been providing Independent Insurance Agents an alternative to the pressure of meeting high production requirements, changes in underwriting appetites and rate adjustments. SIAA has a unique blend of market availability in conjunction with other available services such as marketing programs, educational learning, direct access to insurance company resources including underwriting, claims and marketing, your own agency identity with your agency name on the policies and many more services and resources.
Comparing various groups often boils down to one basic question. Who provides the best income opportunity and what does it cost to participate in the Group? SIAA has been offering its program services long before any other groups. SIAA has perfected the model of providing great income opportunities and access to the best markets. In fact, the SIAA/ICA’s model, along with modest member agency success, can provide income in excess of 100% of the standard insurance company commissions and the cost of membership with SIAA and ICA. This brochure provides an Income-cost comparison of SIAA/ICA to three other groups offering access to independent agent markets, usually without other benefits. The three groups are real groups offering the highest income earning potential. As you will be able to see the SIAA model offers the best solution once an agency has reached a very modest level of success. Please contact ICA with any questions at 888-227-1910.
Compare Contracts Before You Sign
Carefully Examine Who Has Control of Your Book of Business
Comparing entire Agency Group contracts can be very revealing. It is easy to promote how fast it is to join a group and start receiving Income potential. It can be a whole different story when it comes time to sell your book of business or even just leave. 100% equity ownership can have a completely different meaning when you must either sell your agency back to the Group, or to another member of a Group,
without a market value established prior to signing the membership contract. There can be limitations when leaving a Group such as agreeing not to get an agency appointment with any company the Group has placed your business when, in fact, it is the most competitive company for the customer. There can be a non-compete for as long as 2 or more years on the business you had to leave behind when selling your book back to the Group. There may be difficulty replacing business that was placed with a Group using the Group’s name as the agent on the policies requiring the agent to solicit a broker of record letter from ALL of his or her customers. The whole process can an have an explosive effect on your ability to receive the market value of your agency should you decide to leave the Group.
SIAA/ICA strives to get its member agents direct sub-producer contracts with at least 90% of its companies. This allows easy portability of the business if the member leaves or sells the agency. The SIAA/ICA contract, when reviewed by an attorney, is usually the contract recommended because of the clear description on how a member can exit. SIAA/ICA’s contract allows the member to sell or transfer the agency’s business to any third party, at any value the agency is offered, without interference from SIAA/ICA once the contract is closed.
|Paid Compensation Comparison||SIAA/ICA||Group 1||Group 2||Group 3|
|Base Commission %||15.0%||15.0%||15.0%||15.0%|
|Gross Paid Commission||$150,000||$150,000||$150,000||$150,000|
|Percentage of Commission
Paid To the Agent
|Supplemental Commission – Nationall Parnter Companies||1.5%||0||0||0|
|Supplemental Paid Commission||$15,000||0||0||0|
|Total Gross Paid Commission– Nationall Parnter Companies||$160,000||$120,000||$135,000||$150,000|
|Management Service Fee—9% ICA||-$14,400||?0||?0||?0|
|Annual Admission Fee (5 yrs only) ICA||-$1,200||?0||?0||?0|
|Net Total Commission Income||$145,500||$120,000||$135,000||$150,000|
|Gross ICA Earned Profit Sharing||$15,000||?/0||?/0||?/0|
|Profit Sharing % Paid to Agent||70%||?/0||?/0||?/0|
|Total Gross Paid Profit Sharing 2015 (Loss Ratio 59% or Less)||$10,500||?/0||?/0||?/0|
Paid to Agent