MGM Assurance is spearheading a new alliance between its tied agents with the aim of boosting premium income and cross-selling opportunities by pooling resources.
The Master Associate Alliance scheme is also bidding to improve customer relations.
The scheme will allow tied agents to remain separate businesses. One business is nominated the master agency and the others become associated agencies. The businesses must be MGM appointed representatives.
The master agency is the biggest business with around £150,000 annual net premium income. The associated agencies should generate at least £50,000 income.
MGM says the alliances will allow advisers to offer a full financial planning service and will free up more time to spend on sales.
IFA businesses have been making similar moves as tighter margins force them to look at sharing costs. The joint ventures allow the IFAs to pool resources.
National IFA Falcon Group announced in June it was entering a joint venture with Independent Financial Services to share marketing and technology resources.
MGM general manager of appointed representatives Paul Rowell says: “We devised the master and associate alliance following a number of requests from appointed reps for help in setting up a formal scheme. This is a mutually beneficial way for bigger agencies to expand their business and smaller agents, operating in a highly competitive marketplace, to meet customers' increasing demands.”