BGA TRENDS
Future outlook :
How will Intermediaries thrive ?
New study finds most intermediaries surveyed have had success engaging producers under age 40 — more than 70 %
Over the past 20 years , growth in the independent producer channel has exploded as more and more life insurers moved away from an affiliated distribution model . Today there are more than 197,000 independent agents in the U . S ., up 65 % from 1998 . These agents play a pivotal role in the sale of life insurance and annuity products , accounting for nearly half ( 49 %) of total new annualized life insurance premium and nearly 20 % of annuity sales in 2020 .
One of the reasons for the success of this distribution channel has been the expanded role of brokerage general agencies ( BGAs ) and independent marketing organizations ( IMOs ). While affiliated agents can rely on their carriers to provide products , marketing services , and technology and sales support , independent agents have come to rely on intermediaries — like BGAs and IMOs — to bridge the gap between the producer and the carrier , offering comparable support services to help them be more efficient and productive .
Following the Great Recession and now COVID-19 , these intermediary firms have recognized the need to expand and refine the services they offer to attract more financial professionals , grow their sales , and expand their businesses . A new study , conducted by LIMRA and NAILBA , explored the shifting priorities of BGAs and IMOs , the impact COVID-19 has had on their business and the opportunities and challenges they anticipate post-pandemic .
John Carroll , Head of National Accounts Sales Team , LL Global
Recruiting is the top priority
Not surprisingly , 77 % of intermediaries surveyed said their top priority was to grow their network of producers . The study found that the pandemic has altered what firms are looking for in an ideal agent or advisor . More than 8 in 10 ( 83 %) of the firms surveyed said that they are looking for a different profile of producer because of the COVID-19 pandemic . When asked how the profile would change , almost all answers involved attracting agents and advisors who were technically savvy and self-reliant . The pandemic normalized virtual client meetings and our research suggests consumers will expect this convenience post-pandemic . Finding people who are comfortable working with clients in a virtual environment is a must .
42 Perspectives Q2 2022