Managing General Agencies: Your Own Benefits Department

This is the first of an ongoing series on employee benefits. Insurance Journal will increase this series as we attract more advertising from employee benefits suppliers. What information would you like to see regarding employee benefit products, plans, vendors, suppliers, markets, techniques, etc.? E-mail dthomas@insurancejournal.com.

When asked about employee benefits many property/casualty agents seem to cower.

The thought of cumbersome spreadsheets, confusing benefit matrixes, and government regulations has the typical P/C agent running in the other direction. These conceptions should be a thing of the past. As we all know, we have a world of information at our fingertips. The Internet has changed the insurance industry dramatically. Underwriting, claims, and endorsements have all been streamlined with this wonderful tool. Employee benefits are no different. With the help of managing general agents and their Web site, employee benefits is an effortless process.

The most difficult part about writing benefits today is asking the question, “Are you happy with your current benefits?”

Once you have asked the question your work is virtually done. I know it sounds too good to be true, but with the help of a MGA, you sit back, relax and let the experts do the work. From start to finish your general agent will use their internal and external sales force to help you close the deal. They will provide a comprehensive proposal and a field representative to present the case as well as complete the enrollment. You have the option of being included or allowing the sales force to complete the whole process. Here is the kicker, no loss of commission. This is a free service to you.

Managing general agents work off of overrides from carriers. You will receive the exact same amount of commission if you completed the process yourself. Not only do they help on the initial sale, but also they will assign a service representative to each account in order to service daily needs. Managing general agencies can basically be your own benefits department if you use them to their potential.

In order to get started with a managing general agent, do a little research on the Internet regarding MGA’s in your area. In our case, Dickerson Employee Benefits in Los Angeles has become an asset to our agency. Their service staff and sales support have helped us tremendously over the years. Like many other MGAÕs, Dickerson has the potential of allowing brokerÕs access to their services from the Internet at dickerson-group.com. Such tools enable brokerÕs to quote or retrieve information about provider directories, underwriting guidelines and much more. Managing general agents make a novice broker look like a pro. Here are a few MGAÕs that are well known and used in CaliforniaÑDickerson Employee Benefits, Benefit-Mall.com, and Word and Brown (wordandbrown.com).

A great way to create perpetuation
For those of you that might be interested in venturing out to the employee benefits market this could be a great way to start a perpetuation process with a young broker.

As we all know it is very difficult to train and support a new broker in the insurance business. Allowing a young broker to cross sell your commercial book could lead you to higher revenues. With the use of a MGA, a younger broker could use the support to sell employee benefits while creating a working relationship with your clients and increasing your retention. This is just a quick suggestion on a great start into the employee benefit arena. I am a product of this type of perpetuation, and can say with experience, that this can be a great way to begin your insurance career. I have written more property and casualty accounts through referrals than I have through any lead generation program.

Give it a try
In the past, employee benefits could have been one of the most cumbersome and confusing lines of insurance to sell. With managing general agents and a commercial book of business you have revenue waiting to be earned at virtually no cost to you. Attack the small group market and see for yourself what a gold mine you are sitting on.

Matt Jiggins is the vice president of Kelley, Jiggins and Associates in Pasadena, Calif. After graduating Loyola Marymount University, Matt went to work for SAFECO Insurance as a marketing representative in the Greater Los Angeles area before venturing into Kelley, Jiggins & Associates where he works with his father.

Topics Agencies Talent Insurance Wholesale Property Casualty