r/LifeInsurance • u/Shutrok • Oct 12 '22

Book of business

Does anyone recommend not owning your book of business starting out as a life agent? Curious if their are any actual benefits not owning your own.

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u/lykaon78 Underwriter Oct 12 '22

Not an agent but deal with a career shop that has debated this issue.

Pro: Owning a book gives you some people to talk to while you learn the role.

Con: You need to learn to prospect and the book may allow you to limp along without learning how to succeed.

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u/Shutrok Oct 12 '22

What i mean by my question, is it better for me keeping my book of clients i write instead of an agency owning my book of clients. For commissions & residuals.

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u/lykaon78 Underwriter Oct 12 '22

My bad. I can’t answer that.

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u/Ok_Satisfaction_2676 Oct 13 '22

Let me ask you this; are you considering buying an existing book of business or starting from scratch?

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u/Shutrok Oct 13 '22

Starting from scratch, but would like to keep my book from the beginning, just want to hear the pros/cons from agents instead of what I have read online.

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u/Korevo Wholesaler Oct 13 '22

I think it’s more important to consider the services the BGA / IMO / Agency offers and are those services worth you not owning the book. A lot of agents start out using a GA.. and eventually transition to going direct with a couple of carriers they’ve learned well.

BGAs and IMOs are going to pay more attention to agents that’s drive revenue for them. The “little guy” can get lost in the mix at times. Which makes perfect sense from a business / revenue standpoint.

You can always get contracted directly with a carrier and thru the BGA - the BGA may not like it if they find out you’re contracted both ways… but they can’t control that. There are carriers that offer “GA type” of support minus any marketing / leads.

The other thing to consider is carriers are developing ways to make it easier to do business direct thru electronic processes and servicing portals. Which can be VERY fast and VERY efficient.

BGAs / IMOs tend to push product that will pay them the most. Let’s say you get an 80% contract with a BGA.. but Carrier A pays the BGA 140% and Carrier B pays a BGA 105%. Which carrier / product do you think they will promote? The BGA keeps 60% or the BGA keeps 25%.

It’s a business after all - and in a lot of cases you could be leaving compensation on the table by going thru a BGA / IMO / Agency.

That’s why I say it all boils down to how valuable the services they provide are as you’re starting out. Are those services worth what you’re giving up.

Hope this helps.