Future of Brokerage - Nailba

Compared to many industries, life insurance brokerage
is young. It began about 50 years ago when dedicated
single carrier agents needed help placing cases their
carriers would not underwrite. Over time, the brokerage
model has surpassed the single carrier system in the
selling of most life insurance products. Will there
continue to be a role for it in the modern, Internet world
of connectiveness and instant online shopping?
The Value of Brokerage
What BGAs offer producers who work with them, and, ultimately, their
consumer clients, has broad ranging value. Start with the multiple
companies and multiple products they bring into the consideration
process to help consumers find the best insurance solutions, noted
Steve Howard, Publisher of Broker World Magazine. Add to that niche market and
niche product education and training for those agents through newsletters, webinars,
and other educational events. BGAs can help their producers get licensed with
all the carriers they represent. Many BGAs have sophisticated computer systems allowing
agents to track cases and see their annual production in real time.
Because carriers want to sell product lines requiring education and training for producers,
George “Chip” Van Dusen IV, President of Diversified Brokerage Services sees
BGAs playing an essential role. “BGAs bring a substantially more cost effective model to
the carriers,” he said. By delivering education, expertise in multiple product offerings,
and new business directly to the producer, BGAs provide efficiencies that make doing
business easier and more profitable for both carriers and producers.
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