If you are a Life Insurance Advisor in Ontario and you are trying to choose an MGA while entering the industry or if you are already in the industry and you are looking to make a career move, whatever the case may be, this is a big decision. Quite simply this is because the MGA that you choose will have to transfer all of your licensing over to them and train you on their products and services.
It’s in your best interest to do lots of research before making a commitment. If you find an MGA that you are thinking of joining, begin by asking lots of questions. Whether you are an experienced Broker with an established, high-performing business or if you have just started out, whether you are a captive agent or you are placing your business with several MGAs, here is some important information that no MGA wants to talk about.
1. What is their application turnaround time? One major challenge that Brokers face with their MGA is insurance applications getting processed painfully slow and having no control over it. The average processing time for insurance applications with an Attending Physicians Statement is an additional 19 days. An aggressive MGA can get this accomplished in half the time.
2. Is there a guaranteed call back/turnaround time? Some MGAs don’t return calls on time, and when they do, they don’t have all the answers. This can make servicing clients challenging.
3. What is their compensation structure? Some MGA’s compensation plans are not based on individual production and/or performance. That can result in weaker producers actually earning higher bonuses than higher producing Brokers.
4. What are their policies about you switching MGA’s (in case it doesn’t work out and you want to in the future)? Many MGA’s will make it difficult for you to move your license to another MGA in the event you decide you want to leave. It is important that you understand their expectations from the get-go.
5. Can you have direct access to Insurance Underwriters at the insurance companies? Many MGAs don’t like you to call the underwriters asking for help. In fact, they don’t even want to speak to the underwriters on your behalf. They feel their relationship with the underwriters will be at risk if they hassle them too much. They don’t want you to call them either, for the same reason. There may be occasions where you need to call an Insurance Underwriter to get your client the best deal.
Finally, you will be able to give your clients more options and you will be more competitive, if you choose an MGA that deals with all of the major insurance companies, as opposed to being exclusive or partial to just one. If you would like more information about how to choose the best MGA please contact Gary Mandel at IFCG by calling 416-849-1653 or by visiting http://www.ifcg.com/
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