6 Factors to Consider When Choosing a Brokerage General Agency:
- Expertise and experience
Editor’s note: This post was originally published on 6/6/17 and has been updated for accuracy and comprehension.
The key to a great brokerage general agency (BGA) partnership lies in research.
You have to know what to look for in order to find a brokerage general agency that can truly support your business.
Because the insurance industry is highly specialized, you must be more effective in everything you do in order to drive real growth in your practice.
And you can do that by partnering with the right BGA.
Here are the factors you should look for to choose a great brokerage general agency that will provide the strategic relationship you need to grow your business.
How to Choose a Great Brokerage General Agency
1. Expertise and experience
Find out about the BGA’s core competencies by asking questions like these:
What do you know about their principals?
- How long have they been in the business?
- How did they get here?
- Why are they a brokerage general agency, as opposed to a wholesaler, company rep or broker?
The more information you can gather, the better decision you can make. Not all BGA's are created equally.
What is life insurance specialization?
Life insurance specialization happens when a trusted advisor becomes an expert in one particular area of life insurance. It could be a specific geographic area or a certain type of life insurance.
In order to succeed in today’s insurance landscape, you have to be excellent at what you do.
Good just won’t cut it.
To be great, you need to have detailed knowledge about products, which can be an overwhelming prospect.
In fact, it’s not possible for most agents.
Over the course of your career, you’ll probably find a sweet spot or an area in which you want to concentrate your expertise.
Of course, your clients will still expect you to know it all.
Your brokerage general agency can fill in these gaps with specialization in other areas.
Do you represent your entire team?
If you’re a sole practitioner, you need people on your team that can help when you need it.
For example, when you’re meeting with a client about life insurance and an unexpected issue comes up, you need help – fast.
If your BGA has just one life insurance expert, she may not be available when you call.
Make sure you choose a brokerage general agency that always has someone on hand to help.
Choose a great brokerage general agency who supports you in developing deep and lasting client relationships.
That strategic collaboration will help you get sequential sales and referrals – two keys to growing your business.
It may make sense to have your brokerage general agency join you on a meeting with clients.
Chances are, you have a broad knowledge that spans many products, but your real specialization is in one or two areas – that sweet spot we talked about.
If you have general knowledge about long-term care insurance, for example, and a risk exposure comes up during a discussion with a client, you may want to bring in your BGA to assist you, presenting him as your agency’s LTCI expert.
This move will help your clients see the value that you bring to the table.
This final component will make or break your BGA partnership.
In order for the relationship to work, expectations need to be clarified from the beginning.
Before you make a decision about working with a brokerage general agency, make sure you’re comfortable with how you’ll work together in areas like:
- Follow-up procedures.
- Proposal turnaround time.
- Team access.
Transparency is key to your growth.
Don’t go it alone
You can’t do it all and there’s no reason for you to try.
Stop going at it alone.
But do your homework. Set yourself up for success by carefully scrutinizing a BGA before sealing the deal.
Choose a great brokerage general agency that will drive your business into the future.
What qualities do you look for in a BGA?