Life Insurance General Agents: Their Role And Importance

A life insurance general agent is an independent firm or contractor that works for an insurance company. They sell insurance products to insurance brokers, who then sell policies to their clients. General agents often have access to top-tier contracts and relationships with insurance carriers and vendors, allowing them to provide brokers with a wide range of products and services. They act as intermediaries, facilitating the movement of insurance products through the distribution chain. General agents can specialize in one segment of the insurance industry, such as health or life insurance, or sell policies across a wide range of insurance types. They also provide various supportive services to brokers, such as customer service, application processing, and answering underwriting-requirement questions.

Characteristics of a Life Insurance General Agent

General agents are the link between independent insurance agents and insurance carriers

A brokerage general agent is an independent firm or contractor working for an insurance company. They are the link between independent insurance agents and insurance carriers. They sell insurance products to brokers, who then sell the policies to their clients. General agents function as insurance wholesalers, selling to other agents or brokers, who then sell to individuals or companies.

General agencies have access to top-tier contracts and relationships with insurance carriers and vendors. This allows them to provide insurance agencies and brokers with a wide range of products and services that the broker may not otherwise have access to. They can specialise in one segment of the insurance industry, such as health or life insurance, or sell policies across a wide range of insurance companies.

General agents often have their clients' authorisation to act on their behalf. They serve as intermediaries, facilitating the movement of the insurance product through the distribution chain to its final destination.

In addition to selling policies, many general agents provide supportive services for individual brokers, such as taking online applications, tracking cases, providing immediate policy quotes, and answering underwriting-requirement questions. They can also provide support for issues that arise over the course of doing business with a client. They often have contacts who are experts in specific types of insurance coverage, who they can refer to an independent agent to fill any gaps in their knowledge.

A full-service general agency can function as the complete back office of an independent insurance agent. Their support is limited only by an agent's decision to use them to their potential. Their primary role is to provide an efficient, cost-effective, and profitable way to solve any insurance challenge an agent would rather not tackle on their own.

They sell insurance products to other insurance agents or brokers

A life insurance general agent (GA) is an independent firm or contractor working for an insurance company. They sell insurance products to other insurance agents or brokers, who then sell the policies to their clients.

General agents often have their clients' authorisation to act on their behalf in various areas. They serve as intermediaries, facilitating the movement of insurance products through the distribution chain to their final destination. This is because many insurance products are not sold directly from an insurance company to a policyholder.

General agencies provide insurance products and services to agencies or independent brokers. They can be thought of as wholesale agencies for insurance products and services, or a "broker's broker".

General agencies manage multiple relationships and have contracts with multiple insurance carriers. This allows them to provide insurance agencies and brokers with a wide range of products and services that the broker may not otherwise have access to.

In addition to selling policies, many general agents provide a wide variety of supportive services for individual brokers. This can include taking online applications, tracking cases, providing immediate policy quotes, and answering underwriting-requirement questions. They can also provide support for issues that arise over the course of doing business with a client.

General agents can be part of associations such as the National Association of Insurance and Financial Advisors (NAIFA), the National Brokerage Agencies, or the Independent Insurance Agents & Brokers of America.

General agents function as insurance wholesalers

A brokerage general agent is an independent firm or contractor working for an insurance company. They are the link between insurance agencies, independent insurance brokers, and insurance carriers. They sell insurance products to other insurance agents or brokers, who then sell the products to individual consumers or companies. General agents are therefore insurance wholesalers, serving as intermediaries in the distribution chain.

General agencies have access to top-tier contracts and relationships with insurance carriers and vendors. This allows them to provide insurance agencies and brokers with a wide range of products and services that they may not otherwise have been able to access. They can specialise in one segment of the insurance industry, such as health or life insurance, or sell policies across a wide range of insurance companies.

In addition to selling policies, general agents can provide a wide variety of supportive services for individual brokers, such as taking online applications, tracking cases, providing immediate policy quotes, and answering underwriting-requirement questions. They can also provide support for issues that arise over the course of doing business with a client. They often have contacts who are experts in specific types of insurance coverage, who they can refer to an independent agent to fill any gaps in their knowledge.

General agents can also operate as a broker's back-office support team, helping with training, certifications, marketing, and recruiting, so that the broker can focus on scaling their business. They can also provide administrative support, including support with broker contracting, continuing education, marketing, compliance, and client services such as application processing and enrollment.

They have access to top-tier contracts and relationships with insurance carriers

A life insurance general agent (GA) is an independent firm or contractor that works for an insurance company. They act as a link between insurance agencies, independent insurance brokers, and insurance carriers. They have access to top-tier contracts and relationships with insurance carriers, which they leverage to provide insurance agencies and brokers with a wide range of products and services that the broker may not otherwise be able to access.

General agencies often specialize in one type of insurance, such as health or life insurance, or they may offer a wide variety of insurance products, including health, life, dental, disability, and Medicare plans. By partnering with a general agency, smaller agencies and independent brokers can access a broader range of insurance carriers and plan options, which they can then offer to their clients. This is particularly beneficial for growing their business, as it allows them to cater to a wider range of client needs and preferences.

General agents have strong relationships with insurance carriers and can offer top-level contracts with popular carriers. They act as intermediaries in the insurance distribution chain, selling insurance products to other insurance agents or brokers, who then sell these products to individual consumers or companies. This wholesale model is advantageous as it allows insurance companies to focus on product development while relying on general agencies to handle broker support and services.

In addition to providing access to a diverse range of insurance products, general agencies also offer back-office and administrative support to brokers. This support can include services such as broker contracting, marketing, compliance, and client services such as application processing. By outsourcing these tasks to a general agency, brokers can focus their efforts on sales and business growth.

General agencies play a crucial role in the insurance industry by facilitating connections, providing access to sought-after contracts, and offering essential support services to insurance brokers. Their expertise and industry relationships make them valuable partners for insurance brokers, especially those looking to expand their business and better serve their clients.

General agencies provide insurance products and services to agencies or independent brokers

A brokerage general agent is an independent firm or contractor working for an insurance company. They are the link between insurance agencies and independent insurance brokers or agents.

General agencies have access to top-tier contracts and relationships with insurance carriers and vendors. This allows them to offer a wide range of products and services that smaller agencies and independent brokers may not otherwise have access to.

General agencies may focus on one type of insurance, such as health or life insurance, or they may sell products across a wide variety of insurance types, including health, life, worksite voluntary benefits, dental, disability, Medicare, and individual or ACA plans.

In addition to providing access to a large variety of products and carriers, general agencies often offer back-office and administrative support. This can include support with broker contracting, continuing education, marketing, compliance, and client services such as application processing and enrollment.

General agencies benefit insurance agencies and independent brokers by providing better access to insurance carriers and plan options. They also manage multiple relationships and contracts with multiple insurance carriers, which smaller agencies and independent brokers may not have the resources to do.

General agents are insurance professionals who sell insurance products to other insurance agents or brokers, who then sell the products to individuals or companies that will use the insurance. They function as insurance wholesalers rather than retailers and serve as intermediaries, facilitating the movement of the insurance product through the distribution chain to its final destination.

Frequently asked questions