The Role Market Access Providers Play in Agency Growth and Valuations 

Two of the biggest factors in an agency’s valuation are annual commission growth and profitability. Profitability is a factor the agency’s ownership can typically control.  

However, commission growth is often outside of the ownership’s control. During the hard market, organic growth was incredibly difficult for most agencies, but for those with insufficient market access options, it was nearly impossible.

According to the 2024 Agency Universe Study, 57% of independent agencies cited “finding new markets” as their top concern, underscoring how access is a limiting factor for growth.  

As independent agencies come out of the hard market, market access providers are emerging as a strategic partner to unlock new growth opportunities, protect revenue, and enhance long-term agency value. 

Market Access Providers Have Democratized Appointment Exclusivity 

With the proliferation of market access options, the issue of inadequate access to market has become less of an impediment for small and mid-size growing agencies. While not every carrier participates in market access platforms, particularly highly sought after super regional and small mutual carriers, enough do that it has almost eliminated the market access advantage that larger agencies and brokers enjoyed for many years.  

However, when insurance carriers began tightening their underwriting appetites, restricting appointments, and limiting geographic or class availability at the start of the hard market, it became very apparent that there was a widening organic growth gap between agencies that had adequate markets and those that did not. 

While 75% of agencies reported revenue growth (according to the 2024 Agency Universe Study), much of the increase in revenue was a result of premium increases, not PIF count. It was very apparent for those agencies that strategically planned with their carrier lineup and market access solutions vs. those that did not address it in advance of the hard market.  

Market access played a crucial role in helping close the organic growth gap during the hard market by offering agencies pathways to carriers that would otherwise be difficult or impossible to obtain through a direct appointment. Some of the benefits include: 

• Expanded placement options: Access to admitted and niche specialty carriers allows agencies to retain more accounts that might otherwise be lost due to underwriting restrictions and change in appetite with your current carrier lineup.  
• Faster response to market shifts: When core carrier appetites changed, agencies with diversified access pivoted quickly without disrupting client relationships or new business growth strategies. 
• Carrier diversification: Market access providers get agencies access without the standalone volume commitments, allow the agency to build gradually towards a direct appointment, and combine loss ratios with a larger pool of agents.  

These benefits allow agencies to grow not only through new business, but also by defending existing revenue—a critical advantage during the hard market. 

Market Access Impact on Agency Valuation 

Beyond the aforementioned benefits, market access providers can materially impact agency value in a number of ways, including: 

• Ownership of expirations of accounts outside of your core carriers 
• Aggregated profit-sharing opportunities for books of business that would not qualify on their own 
• Opportunity to compete with larger agencies for business that would normally not be a target 
• Build and grow carrier relationship overtime without the pressures of meeting volume requirements.  
• Expand into new niches without heavy upfront investment 

In addition, market access providers often complement these efforts by simplifying the placement process, offering centralized access points, and reducing the administrative burden associated with managing numerous direct appointments. Many offer subcodes to the agencies so they can work directly with carriers’ underwriters and have adopted sophisticated technology tools that assist agents in writing new business.  

Aligning with the Right Market Access Partner 

Not all market access options are created equal. While all provide value for the agents they serve and have a place in the market, the models can vary dramatically. Depending on the structure of the market access relationship, it can materially impact value and ownership of the expirations.  

Agencies contemplating entering into a market access relationship should do their research on the options available and ask the following questions: 

• What markets does the agency lack and why? What type of business are we trying to write that lack of markets is an inhibitor? 
• Does this relationship help the agency develop independently over time or does it make the agency dependent on the platform?  
• Is the model designed as a temporary bridge to direct appointments, or a permanent structure? 
• What is the fee structure? 
• What are terms and conditions of the contract? How can you terminate the contract? 
• What happens to the carrier relationships and business if the relationship ends? 

In an environment where IAs are increasingly collaborating with other entities to remain independent, market access partners can become a core part of an agency’s growth infrastructure and can be attractive to outside acquirers in an external sale. But, ask the right questions and do your research before entering into a relationship with a market access provider.  

Conclusion 

With all of the market access options available to agencies now, market access has been democratized in the IA system. The right market access provider allows you to compete on your relationships, work ethic and coverage expertise.  

While we are heading into a softer market, the data from the 2024 Agency Universe Study made it clear that access to markets is one of the defining challenges for independent agencies. Agencies that proactively expand their market access are better positioned to weather underwriting cycles, retain clients, attract talent, and command stronger valuations when it comes time to perpetuate or sell. In today’s environment, access is not just an advantage—it is a growth imperative. 

To help agencies proactively plan and grow, OIA has invested in Independent Market Solutions (IMS). This exclusive member benefit gives agents the opportunity to gain more carrier appointments, earn contingencies, receive competitive commissions, and own 100% of their expirations with no fees or strings attached. Both OIA and IMS seek to perpetuate independent insurance agents and grow the IA channel.  

To learn more about IMS and to see what carriers are available, you can go to Ohio’s IMS page. For more information on how OIA can help you with market access needs, check out our website or contact Dustin Mahrt at Dustin@ohioinsuranceagents.com.  

About the Author:

Jeffrey S. Smith, JD, CIC, CAE serves as Chief Executive Officer for Ohio Insurance Agents Association (OIA) and IA Valuations. He is responsible for leading the organization’s strategic initiatives and day-to-day operations.

As CEO of IA Valuations, Smith has consulted and reviewed over 400 agency valuations for independent agents across the US. IA Valuations serves independent agencies as a trusted advisor and strategic business partners as they implement strategies to increase their agency value, grow their businesses, and transition their agencies. Smith provides insights into the agency’s operations, risk factors, and legal guidance on how to perpetuate and maximize value in a sale.