Are you looking to partner with an insurance FMO/IMO/GA?
Whether you know it or not, it’s time to start making some decisions. Which carriers will you contract with? What products will you sell?
Which of the 300+ marketing organizations will you choose?
Choosing the right FMO/IMO/GA can be overwhelming, so I’ve compiled six considerations to simplify the process.
Feel free to jump around using the links below:
- What is a marketing organization?
- Available Carriers
- Vested Contracts
- Training & Support
- New Business Processing
- How Long Have They Been in Business?
- Release Process
What is an FMO/IMO/GA?
Commonly referred to as FMO (Field Marketing Organization), IMO (Independent Marketing Organization), or GA (General Agency), an insurance marketing organization is a third party that works between the independent insurance agent and the insurance carrier.
The insurance carriers lean on the marketing organization to provide you with recruiting, contracting, training, licensing, and support at no charge.
What carriers are you looking for?
To succeed, you must sell the best products available for your area.
Use sources such as medicare.gov and run quotes in the area you will be working to make sure your FMO/IMO/GA has these contracts.
You should also check what product lines they have available. If you sell Medicare plans, does the FMO/IMO/GA offer other products you can cross-sell, such as Dental, Hospital Indemnity, and Life Insurance?
You need to ensure the FMO/IMO/GA is diverse in their products.
Fully Vested Contracts
Simply put, having a fully vested contract means you own the business you write.
This is extremely important!
FMOs/IMOs/GAs work by making a percentage of commission on top of your full commission. If you ever decide to leave your FMO/IMO/GA, ensure your business will go with you.
You should also speak to the organization about potentially obtaining a higher-level contract. Most insurance carriers have requirements on this (such as a minimum of 5 agents in the agency, or production and oversight requirements) to receive a higher-level contract.
If you want to recruit agents and build an agency, ensure the FMO/IMO/GA will support you.
Training & Support
Does someone answer the phone when you call? Do they respond quickly to your email?
When you need a quote or have a question, you want your marketing organization to be there for you. They should be available to visit with you one-on-one to answer any specific questions or train you on a particular area of the market.
You should also ensure the FMO/IMO/GA regularly hosts seminars & training to help agents throughout the year.
New Business Processing
While most carriers offer online applications, sometimes you need to use paper due to a malfunction or you’re without internet access.
While the convenience of online applications is valuable, a trustworthy FMO, IMO, or GA should also be equipped to handle traditional paper applications and provide support in case of technical issues or communication errors with carriers.
Make sure the FMO/IMO/GA is able to not only handle you sending in new business, but can also scrub your application for any potential errors and follow up with the carrier should you need proof of submission.
How long have they been in business?
While a start-up organization may look good on the surface with a nice website and big promises, the FMOs/IMOs/GAs who have been in the business a long time generally have the experience and knowledge to lead you in the right direction.
Not to mention the higher contracts and relationships with the carriers who give them leads to pass on to you!
Release Process
If you do decide to change direction and switch to another FMO/IMO/GA, be sure you know the release process from your potential up-line.
Some FMOs will not allow you to change organizations during the open enrollment, and carriers also have release policies.
Conclusion
You have many options, but hopefully, this guide helps you narrow it down to one or two.
Once you’ve narrowed it down, treat the decision like an interview. Make sure the FMO/IMO/GA has the right carriers, contracts, and support to meet your standards.
You should also be cautious of any “too good to be true” promises you’re given, especially when it comes to providing “free” leads, and make sure you know your commission levels upfront.
In the meantime, you can reach out with any questions and we’d be happy to help!
