How Using an MGA in Insurance Can Benefit Agents and Clients?

First, let’s answer, “What is an MGA in insurance?”?

An MGA (Managing General Agent) in insurance is a specialized type of insurance broker that, unlike traditional agents/brokers, is vested with authority in an insurance carrier. Accordingly, the MGA performs additional functions ordinarily handled only by insurers, such as plan and product development, underwriting and rates, appointing retail agents/agency downlines, and even settling claims.

In the Health Insurance industry, it is the highest level of carrier contract and recognition. It’s not just due to tenure, production, knowledge, consistency, persistency, growth, or premium; it’s all that and then the highest of a working relationship! There are many super successful health insurance professionals, though only a few are selected from each insurance carrier to take on this role.?

Insurance is a business that deals with risk and operates based on the law of large numbers. Actuaries use statistical analysis to assess the risks involved in a particular geographic area over a certain period. However, it may only sometimes be feasible for insurance carriers to serve emerging or niche markets or to establish a presence in remote areas. This is where MGAs come in, as they can provide the expertise and service capabilities needed to manage these markets on behalf of insurers. MGAs can sell directly to customers but also work with retail agents to achieve mutual growth and success.

Here are 7 ways an MGA in insurance can benefit you and your insurance agency. Continue Reading...