Many independent insurance agents chose to work for themselves in order to have the freedom to sell a variety of coverage types to a variety of customers. However, in order to stay competitive in the market, independent agents need to ensure that they have access to a variety of insurance products, can excel at offering top-tier customer service and are able to do so for a reasonable price, especially when compared to the big insurance companies. Enter the managing general agent (MGA). An MGA offers independent insurance agents a number of solutions to many common industry challenges, allowing them to stay competitive in their market.
Here are some of the top reasons to work with an MGA:
- Access to a wider variety of markets and carriers. An experienced MGA can offer independent agents access to markets and carriers that the agents may not otherwise be able to connect with. This allows small, independent agents to compete with larger insurance companies while still maintaining control over their own agency.
- Expertise in niche markets. MGAs often enter the market with specialty coverages in niche markets that they have the distribution channels or expertise to reach. When an independent agent wants to insure risks in a specific niche but does not have the requisite underwriting expertise, they can partner with a specialized MGA who can establish underwriting guidelines and share the risks and responsibilities of the corresponding claims and services.
- Efficiency through technology. MGAs are often able to offer digital products that can speed up the quote process and quickly generate leads for independent agents. Additionally, they may have the ability to integrate their wholesale channels into an online platform to improve efficiency while reducing costs and increasing revenue.
- Administrative support. An MGA can provide more than just underwriting to insurance agents. Administrative services can also include launching and hosting software, back office services, claims reporting, the creation and management of bank and trust accounts and more.
- Ongoing training. MGAs are experts in their industry and thus are always up-to-date on regulatory compliance, new industry trends, innovative technologies and strategies for client retention. Partnering with an MGA offers agents access to ongoing education in their market.
- Built-in credibility. Specialized MGAs often have strong relationships with leading insurers, offering brand recognition for smaller agents and lending them more credibility.
- An unmatched level of customer service. MGAs are usually very effective at communication, allowing them to respond to customers quicker and often with more accurate information than an independent agent. This level of customer service helps independent agents retain more clients, and can also help bring in new ones through the word-of-mouth of satisfied customers.
About Wilmington Insurance Agency
Wilmington Insurance Agency delivers comprehensive coastal property solutions. We are a Managing General Agency and provide independent insurance agents with property and liability insurance solutions for residents and businesses primarily in Maryland and Virginia. We work alongside our sister company, Wilmington Insurance Company, established in 1996 and providing Property & Casualty commercial lines business, homeowners, and condominium insurance in the state of Delaware. To learn more about how we can help you to expand your book of business in the coastal market, contact us at (302) 231-2800.