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I have been interviewing multiple IMO/FMO's for Med Supp contracts for myself and my colleagues.
What I can not understand so far is, what is the benefit to the writing agent in submitting business through an FMO, even if you are paid direct from the carrier?
For example, Mutual of Omaha:
Street level for writing agent is 15%?
Then a GA contract is 17%?
I assume an MGA contract is 19-21%?
For the agent who pays for their own leads/marketing tools, I just don't see the benefit for the agent or the agency unless this is truly a high volume business?
It seems to me the margins are too low...
Any thoughts anyone?
What I can not understand so far is, what is the benefit to the writing agent in submitting business through an FMO, even if you are paid direct from the carrier?
For example, Mutual of Omaha:
Street level for writing agent is 15%?
Then a GA contract is 17%?
I assume an MGA contract is 19-21%?
For the agent who pays for their own leads/marketing tools, I just don't see the benefit for the agent or the agency unless this is truly a high volume business?
It seems to me the margins are too low...
Any thoughts anyone?