Difference Between IMO and BGA

[chrisbeyersinut]

I know, i know, others have asked this question in the forum before.....but after reading those threads, I still don't understand the difference between an IMO and a BGA. Can someone please help this newbie? Thanks!

 

[Josh]

Part of the confusion is there are no real industry standards, another part of the confusion is that to the extent that there are industry standards, most people don't know what they are, so fair question.

An IMO/FMO is typically a top level organization. If you're talking to the guy running the show and he or she are the ones giving you the contracts, they're not an IMO/FMO. A true IMO/FMO is licensed in most if not all states and has agents actively selling in at least half of them. Senior Market Sales, Integrated Benefits, Cutler and Associates along with some others fit in that group. Most of the folks on here that are recruiting are actually contracted under an IMO/FMO or may have a few layers in between them. That doesn't mean they can't offer great contracts, but they're more of an MGA.

BGA is a term that is used less often, but it's more like a GA than anything else in most circles.

Then come the agents.

So to put it in one little column:
IMO/FMO
MGA
(maybe BGA)/GA
A

Again, there aren't really industry standards that are consistent across the board, but that's usually what you're looking at.

 

[The Gimp]

That pretty much sums it up. They're just different levels of hierarchy. Like government.

 

[The Brokerage Resource]

As an FMO/BGA here is how we see it for Health/Medicare Supplement/Medicare Advantage.

Some carriers have a DP or ADP= Distribution Partners or Associate Distribution partners. There might be one or two DP's nationally. Everyones contracts go through them.

Next are:

FMO= Field Markerting Office
IMO= Independent Marketing Office
NMO= National Marketing Office

With most carriers this is the top level contract and almost all FMO/IMO/NMO'S contracts are direct with the carrier

Next is:

SGA = Special General Agent =reports to the FMO/NMO/IMO


MGA= Managing General Agents reports to SGA or FMO

GA= General Agent Reports to the MGA,SGA or FMO.

PPGA =Personal Producing General Agent, Guys like Frank who offer contracts and also write personal business, great guys to get training from. Some PPGA'S are have MGA or higher contracts.

BGA is Brokerage General Agent a term used on the life side and can be a top level contract.

Some carriers use number instead of FMO,SGA ect.

There is no industry standard and every carrier is different.

 

[tlmarketing]

On Life side,

BGA is the top. The terms BGA and MGA are interchangeable. The insurance companies such as AXA, Banner, Pru, etc... contract with the BGA, who in turn recruit independent agents to submit business to the BGA.

IMO - These groups typically have 1 main carrier, and may have some additional companies available...an example would be some of the Allianz offices.

FMO - Field Marketing Office - represent 1 company, some people within that office may be employees of the insurance company...ex some of the Protective regional offices

 

[chrisbeyersinut]

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?

 

[VolAgent]

Man, I love how everyone pretty much contradicted each other. It basically means the terms have no meaning and are completely interchangeable.

 

[tlmarketing]

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?

A lot of people don't know the difference and may not know that they are contracted with an intermediary rather than the true IMO...happens all the time.

As far as who to work with, there are SOME IMO/FMO groups that may actually bring value to you as producer..maybe higher comp, better support, marketing programs,etc..you have to shop around when you are the agent.

 

[chrisbeyersinut]

A lot of people don't know the difference and may not know that they are contracted with an intermediary rather than the true IMO...happens all the time.

As far as who to work with, there are SOME IMO/FMO groups that may actually bring value to you as producer..maybe higher comp, better support, marketing programs,etc..you have to shop around when you are the agent.

At the end of the day, it sounds like it is really up to each producer to do their own due diligence and ensure they are getting the best fit. Thanks for the feedback.

 

[NinjaNic]

A lot of people don't know the difference and may not know that they are contracted with an intermediary rather than the true IMO...happens all the time.

As far as who to work with, there are SOME IMO/FMO groups that may actually bring value to you as producer..maybe higher comp, better support, marketing programs,etc..you have to shop around when you are the agent.

Does everyone like the idea of having a sticky thread for all Life GA's/IMOs to openly identify themselves on this forum, with their product lines and services (technology, back office support etc.)? I think it would be a GREAT sticky for agents on this forum that ask the same questions over and over again. Give the IMO's/GA's a place to put their "business card" and give agents a place to go research different organizations and their offerings.