Trend of BGAs Going Direct?

Nov 23, 2015

  1. Brian Anderson
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    Brian Anderson Executive Editor

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    Attended NAILBA in Orlando last week and was a bit struck by all the talk of BGAs who are hiring in-house agents and creating call centers to sell direct in order to expand distribution. I know it’s not a brand new development, but seems like it’s picking up some steam. The ones in the article I just posted (link below) say that while some of their outside producers may resent them going direct, most don’t object because they are typically going after a different, more middle-market consumer. They also say what they learn in dealing with consumers in these call centers is being funneled back to help their outside producers – such as optimized scripts.

    In your experience, do you see this as a trend, and if so, do you have a problem with general agencies expanding into the direct marketing channel?

    Insurance Forums | BGAs seek to expand distribution by selling direct, using call centers as
     
  2. JRoot
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    JRoot Guru

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    Trend? This has been going on for a while. Beyond mentioned in that article, I can name around 6 more off the cuff that have been doing this for years. As long as tie goes to the downline agent (and not the call center), I don't have any issues.
     
    JRoot, Nov 23, 2015
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  3. tlmarketing
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    tlmarketing Guru

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    A number of insurance companies have already hired people to further help BGA groups develop their direct to consumer model...the other side of that story is the continued push by insurance companies and agents to bypass the BGA.
     
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