Building an Effective Managing General Agency
Last month, we took a look at some of the contributors to success for Managing General Agents, stating that when an insurance agent works with an MGA, they are granted tools and strategies in which utilizing will help them to provide the best customer service possible. Perhaps the biggest perk of working for a managing general agency is that the clients are their own, giving agents the ability to provide far better, individualized service to ensure their clients are happy. However, in order for an MGA to be successful and attract those insurance agents, they must start out strong by understanding how to build an effective Managing General Agency (MGA).
Any insurance professional who wants to build an MGA must have a realistic idea of how much their startup expenses will be, since they could be significant. Creating a detailed business plan with these costs in mind, exploring liabilities and risks, and obtaining the right insurance policies for themselves are all important steps in the planning process.
An effective MGA will also have already successful insurance agents, right from the start. The reason this is important is because these agents will help provide an MGA with predictable income early on, with very little assistance. This frees up an MGA managers time so that they can focus on recruiting and training for those who do need it.
Just as important as obtaining talent, is retaining it. An effective MGA manager will invest in their agents’ development. Understanding this and following the above guidelines are key to building an effective Managing General Agency.
K2 Insurance Services, LLC was formed by two insurance industry veterans with the purpose of acquiring managing general agents and developing multi-line programs. Our goal is to distribute innovative products through retail and wholesale distribution channels. To learn more about our services and our partners, please contact us today at (855) 976-8113.