The Benefits of Working with MGAs for Life Insurance Advisors

May 31, 2018 at 3:15 PM / by Sorabh Nagpal  /  3 minute read

MGA Benefits TItle Banner v2As a Life Advisor, one of the most important things you will do is pick the MGA or MGAs that you work with. Designed as the intermediator between the carrier and the Advisor, MGAs act as a necessary bridge between both parties. Working with MGA(s) can be beneficial to your business by providing services to aid with sales support, administration and training. The services provided by MGAs will vary from one to the next, but they often customize their services to an advisors’ needs.

What services or benefits can MGAs offer life advisors?
  • Access to various Carriers – which gives brokers diversified product offerings
  • Expertise & support in various insurance solutions
  • Ability to pre-underwrite policies on behalf of a carrier to expedite the application process (for both the client and advisor)
  • Provide ongoing training for their advisors on new industry trends, innovative technology within the insurance market, and strategies for lead generation and client retention
  • Accessible product specialists
  • Potential for collaboration across other markets (financial planning/wealth management), and the help for an advisor to build a fence around their client by diversifying the products/expertise they offer
  • Administrative support
  • Builds credibility for an advisor (use an MGA’s strong brand recognition for potential credibility)
  • Opportunity for succession planning
  • Organized office space for individual advisors including meeting rooms, reception services

By leveraging these offerings from MGAs, advisors can access options that may otherwise be difficult to obtain directly. MGAs are an advisor’s first relationship, and as advisors work with their MGAs consistently they can get to know their support team which eliminates possible communication roadblocks. Advisors gain the opportunity to collaborate with other advisors, while gaining knowledge and obtaining CE credits from MGA’s training events.

MGA Benefits Pic 2

How do you know which MGA to work with? Here are some key questions you should ask yourself:
  • What relationships does the MGA have within the industry?
  • What makes them different than another MGA?
  • What is the extent of the MGA’s specialization?
  • What is the quality of the MGA’s product and service offering?
  • Does the MGA have technology to drive ease of doing business?
  • Will the MGA provide me with compliance training and support?
  • Are other advisors satisfied with this MGA?
  • Does the MGA have minimum requirements (premiums/annual policies) that can give me a better understanding of working with them?

When deciding to work with an MGA, asking these questions will help you understand both the benefits they provide and potential challenges they face. Overall it is important to understand the full picture before making this decision as a life advisor. 

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Topics: Life Insurance Business as Usual

Sorabh Nagpal

Written by Sorabh Nagpal

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