Anyone who's been in the independent agent game for a while knows the dance with carriers. You forge partnerships, offering their products to your clients, and in return, you get access to competitive rates and, of course, commissions. It's a win-win, right?

Well, almost. There's a balancing act involved, a constant negotiation between efficiency and opportunity. Here's what I've learned from my own experience:

I. The Many vs. The Few

On one hand, having a vast carrier network seems ideal. More options for clients, potentially better rates, and a safety net if one carrier makes changes that don't align with your needs. But let's be honest, managing a dozen different administrative processes, underwriting guidelines, and quoting tools can become a nightmare.

Think about it. Every new carrier comes with a learning curve, additional logins, and potential compatibility issues with your agency management system. Suddenly, the time you should be spending building relationships and advising clients gets swallowed by administrative tasks.

On the other hand, relying too heavily on a single carrier can feel… well, risky. What happens if they decide to alter their product offerings or tighten their underwriting appetite, leaving your clients with limited options? Plus, let's face it, negotiation leverage weakens when you're not bringing in significant business elsewhere.

II. The 80/20 Rule in Action

So, what's the sweet spot? Here's where the magic of the 80/20 rule comes in. In my experience, a core group of 2-4 carriers, carefully selected based on their strengths and your client base, can generate a surprising chunk of your personal lines business – maybe even 80%. These become your "go-to" partners, the ones you know inside and out, with streamlined processes and strong relationships built with their underwriters.

This core group ensures you have the right tools for most clients, but it doesn't lock you in completely.

III. The Art of Having Your Cake and Eating it Too

Here's where the remaining 20% comes into play. Let's say you have a client with a particularly unique situation. Maybe they're a collector of classic cars or own a vacation rental property. This is where having a couple of additional, specialized carriers in your back pocket becomes crucial. You can tap into their expertise for those specific needs without getting bogged down in managing a massive network.

This approach offers several benefits:

• Focus on Efficiency: You become an expert in the products and processes of your core carriers, streamlining quoting and reducing errors.
• Stronger Relationships: Building deeper connections with a smaller group of carriers can lead to better commission structures and improved advocacy for your clients.
• Flexibility for Unique Needs: You maintain the ability to cater to specific client situations with specialized carriers.
• Negotiation Leverage: You're not solely reliant on any single carrier, giving you more power when negotiating commission structures and terms.

It's All About Balance

The key takeaway? Don't get caught in the trap of "more is better." Take the time to find a core group of carriers that align with your agency's strengths and your client base. Then, supplement that with a couple of specialized options for those unique situations. This approach creates a win-win for you, your clients, and your carrier partners. It's all about striking the right balance and finding that sweet spot where efficiency meets opportunity.

Remember, this is just my experience. Every agency is different, and what works for me might need some tweaking for your situation. But hopefully, this gives you a framework for finding your own perfect carrier mix!