This post is part of a series sponsored by AgentSync.
For MGAs and MGUs looking to own the future of their distribution channels, having a reputational edge with downstream agencies and maintaining a great producer experience is critical. To help, AgentSync has released a report, Four Producer Barriers to Your MGA̵7;s Expanding Market Share.
Insurance has long been dominated by producer-led sales, a trend that is likely to continue for the foreseeable future. Yet general agency managers and general underwriter managers often sit in the middle of a distribution channel, parked between carriers and smaller agencies and producers.
These MGAs and MGUs face unique challenges in breaking through the industry noise to prove their value to players on both the upstream and downstream sides of the sales pipeline.
For a quick look at how to turn compliance into your biggest producer experience superpower, download our checklist, Eight Steps to Drive MGA Growth by Improving Your Distribution Partner Experience.
MGA challenges to a good producer experience
Carriers hire MGAs in part because of the access they provide to distribution channels aligned with producers. After all, even with direct-to-consumer sales tools galore, 75 percent or more of all insurance sales are still led by human agents.
But with an industry not bringing in enough talent to close the gap in insurance retiree attrition, traditional channels from agencies and downstream wholesalers are about to become more competitive.
These trends are exacerbated by different expectations between what younger, digitally savvy producers want and need from their producer experience versus the manual, tedious compliance processes that have long plagued the industry.
Another challenge specific to MGAs is that they may have a wide range of compliance duties that include those traditionally assigned to both carriers and agencies. Some MGAs act only as an intermediary agent, with practical duties more or less limited to basic due diligence, anti-fraud and data validation measures. Other MGAs and MGUs take on tasks such as appointments on behalf of their carriers, or they license to an in-house producer force. These different standards add a layer of complication to any MGA making a play for potential downstream partners.
Opportunities for MGAs that establish solid producer relationships
Four Producer Barriers to Your MGA’s Growing Market Share describes the top three challenges MGAs face as they pursue relationships with insurance producers, then provides a roadmap for how modern insurance infrastructure including technology solutions and processes can overcome and even adapt to these obstacle.
The insurance distribution channel consists of wholesalers, agencies and producers whose most lasting impression of an MGA may well come from its onboarding or compliance process. So it’s worth an investment to avoid a “process” that is actually a series of emails and phone calls, missed syncs and messages that start with “I’m sorry but we haven’t yet received…” By carefully choosing the right modern insurance agent onboarding software, MGAs can create a frictionless and producer-friendly experience.
Instead of taking risks, MGAs can position their compliance obligations as a growth prospect by using producer onboarding software, which in turn impresses both producers and upstream operators. Ultimately, as the guide will demonstrate, these modern producer compliance tools will reduce churn and make it easier to recruit and retain talented financial professionals at a time when they are scarce.
To learn how MGAs across the industry are breaking down their barriers to building a producer-friendly reputation in compliance, download your copy of Four Producer Barriers to Your MGA’s Expanding Market Share. To address your own obstacles during the producer compliance process from onboarding to termination, eight steps to foster MGA growth by improving your distribution partner experience.
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