From the point of view of your clients, a GA partner is largely invisible. The GA's services are a tool for your business. What does a GA offer to brokers that you may not be able to do as easily yourself? There are several areas of support GAs provide that can complement your efforts:

Access to a wider range of products and services. GAs typically work with a broad range of different carriers and each one of them offers its own suite of products. Combined, you can gain access to hundreds of different products that may be difficult to source on your own and stay current with.
Industry expertise across the insurance spectrum. It is in the GA's best interests to specialize in one area of insurance. Specialization in employee benefits plans, for example, provides experience that helps the GA point you to the right insurance products for each of your clients and help you better understand each of the products you sell.
Technology solutions and resources. On your own, investing in technology can be expensive and time consuming. The best GAs in the business facilitate relationships with their brokers through state-of-the-art technology, offering solutions that make managing your book of business more easy and efficient.
Carrier relations and access. GAs generally have the ability to at least quote, rate, bind and service policies. This gives brokers complete access without having to deal directly with multiple carriers. Brokers work with one GA instead of dozens of different insurance companies, all with different ways of doing business.
General flexibilities and efficiencies. Perhaps the most important benefit of partnering with the GA is greater flexibility and efficiency. GAs tend to be smaller businesses, making them more agile at any point in time. As such, they tend to be more flexible in responding to market conditions, other influences and most importantly, your specific needs.

What's right for me?

GAs are efficient in their business practices. Their efficiency hopefully goes beyond their own operations to reach brokers as well. When deciding if the time is right to engage with a GA, there are a few key points to keep in mind:

Who owns the relationship with the client? When working with a GA, an individual broker still owns the relationship with the client. The GA serves in a support role to the broker and is not client-facing. This ensures that your clients still receive the personalized service they expect from you as a broker, with no confusion as to whom to contact or trust.
How flexible are my options for servicing business? Working with a GA should not mean that you have to fit your process into a pre-described box. From quoting to enrollment and ongoing maintenance of the client account, a GA should offer integrated solutions focused on simplifying administrative tasks in order to allow you to focus on caring for your clients and new sales.
What are the fees? A GA partner is compensated by the carriers, so there are no direct costs to the broker or client associated with working with a GA. If costs are involved, the partner you are considering may be another brokerage firm looking to add you to their roster through a revenue sharing arrangement and not a GA.
What are the cost efficiencies? Another way to look at costs is to determine how you can achieve savings through working with a GA. The most significant selling point for a GA is to reduce your cost structure by offering automation and support technology that makes your job easier and allows you to quote and serve more business.

Working with a GA does not mean you give up your autonomy as an individual producer. The partnership is meant to enhance your business and help you grow, which ultimately allows you to better service your existing clients' needs and grow your business.

Instant Insights /

Should brokers partner with a general agency or go it alone?

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