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
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.
