Inside the Intermediary: BGA and IMO Survey Results




Access the Full Report HERE


In 2021, LIMRA and NAILBA collaborated on a multi-component research study to learn more about brokerage general agencies (BGAs) and independent marketing organizations (IMOs) in the United States. The goal was to gain a better understanding of the BGA/IMO marketplace, its composition, challenges, and opportunities.

In September 2021, the following studies were conducted:

• A survey of 60 BGAs and IMOs
• A survey of over 400 independent life insurance and health producers
• Eight interviews with senior executives from BGAs and IMOs

The combination of quantitative and qualitative research allowed us to compare and contrast the perspectives of key stakeholders regarding the current state and future outlook of brokerage distribution.

The report is divided into six sections, covering the following:

1. Organization Profile
2. Producer Network
3. Carrier Relationships
4. Business Operations
5. Future Outlook
6. Shared Comments

Key Findings Include:

  • 77% say growing their producer network is top two business priority
  • 67% say increasing product offering is top two business priority
  • 57% expect to grow their producer networks in the next three years by an average of more than 25%
  • 72% say product pricing is the primary reason they place business with a top carrier
  • 87% added a new carrier in the past two years; 57% dropped at least one carrier
  • 69% added a new carrier based on product features offered by that carrier
  • 50% dropped carriers because of their non-competitive product lines
  • At least 5 in10 BGAs are not satisfied with the level of support provided by carriers
  • 75% agree or strongly agree they need to invest more in IT and technology to be competitive in the future
  • 72% agree or strongly agree M&A of BGAs and IMOs will increase over the next three years
  • 72% agree or strongly agree differentiation among intermediaries is becoming more difficult

Access the Full Report HERE

In the video below, hear Dave Levenson, LIMRA CEO, discuss trends, performance benchmarks, and best practices as reported by BGA principals and IMO leaders in the survey. He also reviews the survey findings on how BGAs and IMOs are organized, the services they provide, their preferences for working with insurance companies, and how they are positioning themselves for the future.