Hi everyone, I just received my CO life license. I want to contract directly with several annuity insurers. I am going to focus solely on MYGAs, usually 3 years, as part of an investment strategy. So I'd like to cut out the middleman as I don't need much if any support. I am looking for insurers rated A- or better offering good 3 year rates. Any suggestions with whom I can directly contract?
Annuity insurers with whom I can directly contract without an IMO
- Thread starter RSokol
- Start date
Midland.
You don't get higher comp not using an IMO though. And you can still work directly with the carriers, even if you have an IMO.
- Thread starter
- #3
Anyone who specializes in annuities would work. You'll just need to make sure they have some of the smaller carriers since they're the most competitive in the 3yr MYGA space (typically). For A- and above:
SBLI (Prosperity), Oceanview, Pacific Guardian, GBU, Aspida, and Sagicor are all competitive.
- Thread starter
- #5
The carriers build in levels above agent comp for distribution. Agents are not eligible (immediately) for that compensation. For the handful of carriers that don't require an IMO, they just keep the difference.
For instance, North American (Midland's sister company but sold through the IMO channel) has 10 commission levels. 1 is the top contract and 10 is the "broker" contract. The one that you'll see advertised on websites that show commissions is level 7 (writing agent) which is where almost all IMOs will start an agent. To get the direct (#1 with them), you have to be doing 100s of millions of annuity sales (and promise to send them a lot of that production). Any other level in between is going to need a combination of production and negotiation but you're still going to have an upline.
The carriers want it this way. They don't want Joe Agent calling them up and trying to submit business directly. They want a large IMO recruiting for them and insulating their business from things like chargebacks.
Most carriers require an IMO anyway (or if you call them direct, they'll just assign you one). There aren't many "direct" carriers in the first place and where you can get direct, you're still getting similar comp as an agent.
It's no different than a client trying to cut out the middle man (you) and buy directly from the carrier. The rates wouldn't change, the carrier would just be more profitable on that business.
My agency has direct contracts (as an IMO) and for the ones where we're not direct, we use Southwest Annuity Marketing (Unkefer and Associates).
- 4,888
I would suggest you not zero in on a specific strategy like 3 year MYGA. That seems to put your interest ahead of the clients best interest and or suitability. Focus on the client, then match them up with the proper product and/or duration that aligns with their goals & time lines
List of IMOs and FMOs for Annuity and Life | Safe Money Broadcasting
www.safemoneybroadcasting.com
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I'm guessing they're a financial advisor using a bucket strategy investment approach. The three year is bucket 1a or something to that effect of a comprehensive distribution strategy.I would suggest you not zero in on a specific strategy like 3 year MYGA. That seems to put your interest ahead of the clients best interest and or suitability. Focus on the client, then match them up with the proper product and/or duration that aligns with their goals & timeliness
List of IMOs and FMOs for Annuity and Life | Safe Money Broadcasting
- Thread starter
- #9
Most of my business is working with financial advisors so it was a fair assumption by the way you worded your post.
Indexed annuities don't have fees (unless you're talking about riders).
Your issue with doing this will be the favorable pricing that the annuity carriers can get on those components vs. the DIY approach.
The FIA carriers are the same ones issuing the MYGA. If you're trying to use a MYGA as the "zero bond" in this example, you're already playing catch up.
