Carrier Appointment

Insurance agencies do not place business directly with carriers; they need a contract — an appointment — that authorizes them to bind coverage on the carrier's behalf. There are three main appointment types.

Direct appointments are held by the agency itself. The agency owns the carrier relationship, the commission rate, and the contingency contract. These are the most valuable.

Cluster or aggregator appointments are held by a network the agency belongs to. The agency accesses the carriers indirectly. The cluster owns the relationship; the agency rents access. Cluster commissions are typically lower than direct, and the agency loses access if it leaves the cluster.

Wholesale or MGA appointments come through a third-party wholesaler that holds the carrier relationship. Used for specialty placements where the agency lacks direct access. Commissions are split with the wholesaler.