Difference Between IMO and BGA

Thanks for all of the information, that helps me understand the landscape much better. As a follow up, I looked at some of the names listed for IMO's. It appears, after looking at their websites, agents/producers can contract directly with them. Why would someone contract with a GA or FMO, if they can work directly with an IMO? In other words, why put the extra layers in there as a producer?

The levels in between are basically legs of support. Don't get too hung up on letters. Unless you can show BIG production numbers its not going to make a difference where you go. Probably get the same comp pretty much either way..

Just call around and find a couple groups you like.
 
Great insight from everyone. As I read through the posts, while they all contain wisdom and truth, it also made me think of various carriers we represent, that are an exception to each scenario presented. This is basically alphabet soup, and it varies so much by carrier. For some carriers, MGA's are direct contracted, and that is pretty much the top level. For others, BGA is at the top of the ladder, and for others, it is IMO/NMO/FMO, etc.

There are definitely FMO's that represent many carriers, as well as those that are somewhat exclusive. Also, with many top level organizations, they don't necessarily have all contracts at the top level. You may work with an IMO that is is direct to several carriers, but is an MGA below another IMO for others.

There are so many combinations, I really think you shouldn't focus too much on the letters. To some companies a BGA amounts to very little, and to others, you are the supreme commander at that level. I would focus more on the comp plan, and how competitive it is, in terms of first year commissions and renewals. Also, who you would enjoy working with the most, if anyone stands out. You can go direct to an insurance company in some cases, and think you are coming out ahead as a result. Or you can talk to someone on the forum like James who posted above, and actually end up with a higher contract, and better support, depending on the carrier, and other factors.

At the end of the day what matters most is that you have a great contract level, are working with people you trust, and keep your life as simple as possible as far as contracting goes. Working with 5-10 different firms who each handle different contracts for you can be a hassle. It's always nice to have a point person, who can help put out fires, and be there for you when you need them. This may be someone with a carrier directly, someone on the forum, or an IMO, depending on what you need and want. However, don't think that just because you are going direct or though a top level organization that you are coming out ahead. You may with some contracts, and may not with others.

We are a top level organization, NMO/IMO/FMO/BGA etc., depending on who you talk to. They all use different terms that have different meaning, so the title itself means little. It is more about the specific relationship and how each company defines the letters.

However, just like all others, we standardize contracting levels, in great part based on the various guidelines of the insurance companies. If you call us and want the highest level contract with Royal Neighbors, American General, Protective Life, Genworth, ING, SBLI. AVIVA, Transamerica, MetLife, Mutual of Omaha, American National, Fidelity Life, North American, Assurity, United Healthcare, Humana, Coventry, Sentinel Security, or whoever...they all have rules or expectations or underlying factors that we have to consider.

At certain levels, many have proof of production requirements. Others actually go so far as to require business plans, and telephone interviews, as well as supporting documents. The requirements vary greatly, and wether you are talking to a great and extremely helpful senior level recruiter on the forum, or an NMO/IMO/BGA/Whatever, both have to follow the same rules for the most part....since ultimately the same insurance company has to approve it. As a result, you would usually have the potential for the top level that is available, based on what you qualify for, no matter who you call.

For some of the carriers that I mentioned above that we represent, they don't question the top level contract, which is helpful, however in some cases the margins can be so small if we give that level out, that we can actually loose money with each application submitted that is below a certain annual premium. As a result, even if it's not about carrier rules, it can also be about dollars and cents, as far as what contract makes sense in a specific situation. To further complicate things, in some cases we may give out a contract that we loose money on with each app submitted, for a specific producer who has a need for a specific level with a specific carrier, in consideration of the overall relationship.

How could an IMO/NMO/etc. loose money on an application? Some of the carriers require certain types of processing, which they themselves don't do for certain types of cases, within certain parameters. This can be time consuming and costly, and can easily exceed the margin on smaller cases. As a result, even if the carriers don't have production requirements for the higher levels, some IMOs/BGA's/FMO's/NMO's will, since they have to in order to balance the budget.

Also it is important to understand that sometimes if you go direct to the carrier (which some carriers allow, and others don't) you may actually end up with a lower level contract, more micro-management, and less support.

I don't mean to make this seem even more confusing than it already is, but there is a point to all of this. It is a lot more important to work with those who you enjoy working with, who you trust, and who will go to bat for you when it counts, than trying to contract with the highest level organization you can find for each specific carrier you want to pursue, which does't necessarily lead you down the right path. It is the relationship that is far more important, and worth much more in the long run, than the level of your recruiter/top level organization/etc.

I hope this helps a little, I wrote way too much, so please take it with a grain of salt and a shot of tequila.
 
Last edited:
IMO- Recruits BGA's
BGA- Recruits independent agents or smaller agencies

IMO's were created so that BGA's could pool their production together in order to get higher contracts and bigger bonuses. All of the members of the IMO (see BRAMCO, AIMCOR, Life Mark) are similar in structure, and the IMO affiliation creates a way to share best practices between the offices. IMO's typically don't provide back office support to an agent or agency.

BGA's- Recruit agents or small agencies that are essentially looking for back office support. BGA's provide support every step of the way from case design, case management, underwriting, product information etc.

An independent agent typically would not be contracted directly to an IMO because they would need back office support, that you are not going to get from an IMO, and again the point of an IMO is to group together similar BGA's. IMO's are essentially the contract holder and all of the member offices under their umbrella are the ones dealing directly with the producers.

Hope that helps!
 
I am in Florida and will like to get a list of the best company to work with as a new life,health insurance agent
 
IMO- Recruits BGA's
BGA- Recruits independent agents or smaller agencies

IMO's were created so that BGA's could pool their production together in order to get higher contracts and bigger bonuses. All of the members of the IMO (see BRAMCO, AIMCOR, Life Mark) are similar in structure, and the IMO affiliation creates a way to share best practices between the offices. IMO's typically don't provide back office support to an agent or agency.

BGA's- Recruit agents or small agencies that are essentially looking for back office support. BGA's provide support every step of the way from case design, case management, underwriting, product information etc.

An independent agent typically would not be contracted directly to an IMO because they would need back office support, that you are not going to get from an IMO, and again the point of an IMO is to group together similar BGA's. IMO's are essentially the contract holder and all of the member offices under their umbrella are the ones dealing directly with the producers.

Hope that helps!

This was a really great explanation. It explains why some organizations offer lots of back office support, and others offer almost nil.
 
Back
Top