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New report points MGA and MGU barriers to producer experience and distribution growth


This post is part of a series sponsored by AgentSync.

For MGAs and MGUs looking to own the distribution channels of the future, building a reputation with downstream agencies and maintaining a superior producer experience is mission critical. To help, AgentSync has released a report. 4 Producer Barriers to Expanding MGA Market Share.

The insurance industry has long been dominated by insurer-driven distribution, a trend that is likely to continue for the foreseeable future. However, general agent management and general underwriter management are often located in the middle of the distribution channel, with stops between carriers and smaller distributors and producers.

These MGAs and MGUs face a unique challenge of breaking through the industry noise and proving their worth to players both upstream and downstream of the sales pipeline.

Download our checklist to easily see how compliance can be turned into a superpower for maximum producer experience. 8 Steps to Improve Your Distribution Partner Experience to Drive MGA Growth.

MGA’s challenge to a great producer experience

One of the reasons operators recruit MGAs is that they have access to the same distribution channels as producers. After all, even with an abundance of consumer sales tools, Over 75% of all insurance sales are still led by human agents.

but, In an industry that doesn’t have enough talent to close the retirement gap of insurance retireestraditional funnels from downstream distributors and wholesalers are about to become more competitive.

These trends are exacerbated by the discrepancy in expectations between what young, digitally savvy producers want and need from the producer experience, and the manual and cumbersome compliance processes that have long plagued the industry. increase.

Another challenge unique to MGAs is that they may have a wide range of compliance obligations, including those traditionally assigned to carriers and agents. Some of his MGAs only act as intermediaries, more or less limited to basic due diligence, fraud prevention, and data verification measures. Others in his MGA and MGU undertake duties such as appointments on behalf of the carrier or license in-house producer armies. These different standards add another layer of complexity to MGA trying to acquire future downstream partners.

Opportunity for MGA to establish strong producer relationships

4 Producer Barriers to Expanding MGA Market Share It outlines the top three challenges MGAs face in pursuing insurer relationships and provides a roadmap for how a modern insurance infrastructure, including technology solutions and processes, can overcome and realign these barriers. Offers.

The insurance distribution channel consists of wholesalers, agents and producers, where MGA’s most lasting impressions may come from its onboarding or compliance process. So avoiding the “process”, which is actually a series of emails and phone calls, sync failures, messages that start with “Sorry, you haven’t received them yet…” is worth the investment.right choice Modern insurance agent onboarding software, MGA can create a smooth, producer-friendly experience.

By using producer onboarding management software instead of taking risks, MGA can position its compliance obligations as a growth prospect, impressing producers and upstream operators. can. Ultimately, as our guide shows, these modern producer compliance tools reduce turnover and make it easier to recruit and retain in an era of shortage of qualified financial professionals.

To find out how MGA across the industry is breaking down barriers and earning a reputation for being producer-friendly in compliance, download your copy below. 4 Producer Barriers to Expanding MGA Market ShareTo address the unique barriers in the producer compliance process from onboarding to termination, 8 Steps to Improve Your Distribution Partner Experience to Drive MGA Growth.

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