New broker network established to promote organic growth

It’s not a franchiser, it’s not a consolidator, and it’s not a broker network, at least, not in the traditional sense. Insurance Growth Network is a brokerage builder, CEO Ben McDonald tells Canadian Underwriter.

Originally CMB Group of Companies, the newly rebranded IGN provides strategic support for new producers, as well as established brokerage owners looking to launch or grow their business organically.  

Investors and consolidators alike are seeking to acquire insurance brokerages. Amid heightened M&A activity targeting B2B and personal lines brokerages and retiring broker principals selling their books, brokerages looking to grow organically are often left in the dust of their peers.  

“I would argue part of the reason — if not a lot of the reason — why brokerages are selling is because they don’t have a clear growth plan,” McDonald says. “Maybe that brokerage has been in decline for a period of time, and they don’t know how to solve that problem.” 

Enter IGN. Its mandate is to provide a unique growth opportunity for brokerages that either: 1)  don’t want to grow through M&A, or 2) seek an alternative to the option of joining existing brokerage network models as a means to scale their operations. 

McDonald says IGN provides a managed solution that’s focused on rebuilding the middle market broker.  

“Our network is a turn-key solution. So, it not only supports you in market access, but it’s also support in sales, best practices, client retention, backs, practices, recruiting, HR operations,” he says. “All the things that would normally be a barrier for somebody to go out on their own and launch their own brokerage.” 

McDonald emphasizes M&A is not the only road to advancement for small brokerages. 

“All of our time, energy, skills, resources, capabilities are [aimed] at attracting really great people, teaching them how to be highly effective salespeople and service folk, and then ultimately, growing your company,” he says. “Our [core purpose] is centered on…how do we write the next insurance policy, or how we invest in our people in order to arm them to write the next policy?” 

The Alberta-based network also houses its own brokerage brands, CMB Insurance Brokers, Progress Insurance, and Mango Insurance.  

IGN also helps with planning for economic uncertainty, McDonald says. 

“I don’t think I need to go into too much of the politics of what just transpired [with] our friends to the south, but yeah, there’s potential for significant disruption in supply chains. A lot of the businesses in Alberta have cross border exposure to some degree or another, and I would expect things to change and evolve over time here.” 

As for its expansion plans, McDonald says IGN wants to grow “outside of the four corners” of Alberta.  

 

Feature image by iStock.com/Eoneren