johndewars
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- 16
Have you guys heard about this? Are they taking PGA division into career states? How will they mesh the 2? Most important question: why?
Ohio National Expanding Career Shops into PGA Territory?
- Thread starter johndewars
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- 11,278
I'm not sure its true.
Here in California, MassMutual shook things up by firing almost all the GAs, including my old GA. This was a couple of years ago. I later found out my old GA was with Ohio National. (California is a PGA state.)
When I met with my RVP for Ohio National, we talked about him. He said that my old GA (and others thinking like him) are trying to build up career agencies as an extension of the PGA program. PGAs can have independent agents work "under" them through an IPA agreement.
We both didn't like that idea and that he was 'bastardizing' the program. However, I was under the impression that my old GA was doing it for his own reasons, not under some 'corporate mandate' or program.
Here in California, MassMutual shook things up by firing almost all the GAs, including my old GA. This was a couple of years ago. I later found out my old GA was with Ohio National. (California is a PGA state.)
When I met with my RVP for Ohio National, we talked about him. He said that my old GA (and others thinking like him) are trying to build up career agencies as an extension of the PGA program. PGAs can have independent agents work "under" them through an IPA agreement.
We both didn't like that idea and that he was 'bastardizing' the program. However, I was under the impression that my old GA was doing it for his own reasons, not under some 'corporate mandate' or program.
- 15,041
I was flat out told by the previous regional that ONFS does not like PGAs putting agents under them. They would rather put the agent on a separate PGA contract.
If anything happens, I would expect to see PGAs moving into career states. The question is, will it upset some of their career GAs, and will they care?
They have had some states that overlapped for a long time. PA comes to mind. Part of the state is career, the rest is PGA.
Assuming this is happening, the "why" would be easy. ON - just like every other financial institution on the planet wants all the business they can get (that fits their profile). Nothing really wrong with that.
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johndewars
New Member
- 16
Its true. Straight from the inside.
I always got the impression, from home office folks, that career would never come into PGA states, and vice versa. I also know Regional VP job duties were changed recently as well. The annual target on recruiting PGAs was reduced significantly and greater emphasis placed on working with PGAs and growing premium. I think so much of onat - these midstream changes in direction concern me.
I always got the impression, from home office folks, that career would never come into PGA states, and vice versa. I also know Regional VP job duties were changed recently as well. The annual target on recruiting PGAs was reduced significantly and greater emphasis placed on working with PGAs and growing premium. I think so much of onat - these midstream changes in direction concern me.
- 15,041
It sounds like they are tired of contracting everyone who moves and then getting minimal production from them. I thought perhaps they were pickier than that, but maybe not.
Believe it or not, it costs real money to contract an agent. If they aren't going to produce they are a loss and not a profit center. While many states have fairly low appointment fees, some have quite hefty fees. But when you start multiplying that by thousands of agents, it adds up very quickly. Plus, agents who write only a few pieces of business are a drag on sales support and underwriting. They aren't very familiar with forms, or underwriting requirements, appetite, etc. So they call in a lot and suck up a lot of time.
Obviously, I don't know ONFS motives, but I can easily see why they may move to contracting fewer agents. I would be surprised if they brought on more career GAs though. That is even more expensive as they get up to speed.
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