PROVIDENCE, R.I. – Life insurance and annuity producers on average tend to be appointed with six different carriers but only one or two BGAs/IMOs/FMOs, according to a recent survey sponsored by Brokers’ Service Marketing Group.
The non-branded, blind survey represents responses from more than 75,000 financial professionals in the U.S. who have sold an annuity or life insurance policy, to at least one client in the past 12 months, and who currently work or have previously worked with a Brokerage General Agency (BGA), Financial Marketing Organization (FMO) or Independent Marketing Organization (IMO).
The 2016 Life Insurance & Annuity Brokerage Survey Report is an in-depth analysis of the state of advisor relationships and decision-making criteria regarding their Brokerage Agencies (BGAs/IMOs). This report is designed to give financial advisors, life insurance professionals and estate planners a look at what their peers have to say about their experience with their Brokerage Agencies and consider how their own BGA relationships measure up.
The majority of respondents identified themselves as a Financial Advisor or Independent Life Insurance Broker who works alone out of a home office or with a small group of advisors. The average respondent has been working within the industry for 13 years and works with about 80 clients in a given year.
The study encompassed advisors with all levels of production and is representative of the “advisor universe.” According to the results, respondents who sell life insurance typically bring in annual premiums falling within the broad range of $15–$100,000, but falling more narrowly between $50,000–$100,000. Only a small percentage, 3.2%, sell over $1M in annual life insurance premiums. Contrastingly, those who sell annuities are more varied in their production levels across the board.
In general, the survey found life insurance and/or annuity producers tend to be appointed with many carriers. More specifically, 32.5% are appointed with between 4-6 carriers, 28.4% with 7-10 carriers and 21.1% between 0-3 carriers. The average number of carrier appointments for any single producer is 5.9.
While life insurance and annuity sales professionals tend to be appointed with a number of carriers, the opposite is true when working with Brokerage General Agencies/IMOs or FMOs. Producers typically work with only 1 or 2 different partners for sales support and practice management.
Advisor needs and expectations
Survey respondents were exposed to 26 attributes related to working with BGAs/IMOs and were asked to rank these attributes in order of their importance to the advisor. So what makes a great BGA? Here are the Top 5 attributes according to the survey for brokers, financial advisors and estate planning producers:
The 5 most important attributes in a BGA for an independent broker:
- Reliable service
- Quality of products
- Staff knowledgeable of products
- Ease of placing cases
- Efficient staff
The 5 most important attributes in a BGA for a financial advisor:
- Staff knowledgeable of products
- Reliable service
- Good choice of products and carriers
- Quality of products
- Ease of placing cases
The 5 most important attributes for in a BGA for an estate planning producer:
- Reliable service
- Ease of placing cases
- Staff knowledgeable of products
- Efficient staff
- Quality of products
High commissions came in ranking at the 16th place of importance and company popularity and brand awareness came in last. According to the survey results only 4.3% of life insurance and annuity sales professionals stated compensation is their main motivation for choosing which support partner to work with.
To download the full report, please visit: http://web.bsmg.net/2016-life-insurance-and-annuity-brokerage-survey-report
• How many carriers are you appointed with? What attributes are most important to you in a BGA? Chime in on this thread: Typical producer appointed with 6 carriers?
About Brokers’ Service Marketing Group: Dedicated to building a world-class life insurance brokerage firm for advisors and financial institutions, David B. Lea, Jr. launched Brokers’ Service Marketing Group in 1972. For over 40 years, Brokers’ Service Marketing Group has delivered uncompromising support and service to top producers in the Life, Annuity, and Long Term Care Insurance arena. For more information, please visit:http://www.bsmg.net
