Are FMOs Necessary?

[midwestbroker]

It really depends on what you expect out of the FMO.

Think of all the agents a large FMO deals with, from contracting issues, supplies, etc. Most carriers are happy to let them to through a FMO rather than call direct.

There are some great FMO's out there that can help with cases, training, getting volume discounts for leads (mailers and internet), guidance, etc. It is just a matter of finding them.

I look at FMO's like auto dealerships. If you want a new Ford, you cannot go to the factory and buy one, you have to go to a dealership. There may be numerous dealerships that have the exact Ford you are looking for, it is just a matter of finding one you want to do business with.

 

[DS4]

Almost every contract I have is direct. Probably over 50.
It wasn't until I wanted to market AARP/UHC, and, MAPD's that I finally had to deal with a FMO.
IMO, FMO's are less than worthless.
During the next round of carriers looking for cost savings, FMO's are endangered.

 

[scagnt83]

If you want to contract with 80% of Life and Annuity carriers FMOs are necessary.

Like everything else in life, some are better than others.

I have some IMOs that bring value to my business. Pinney is one. Their backroom support to get life/ltc cases issued is unmatched. So is their ezlife term/gul sales system.

It all depends on what you want out of an IMO. Some specialize in leads, others are there just to offer top contracts, others specialize in servicing cases. Some specialize in annuities, others are more life oriented. Then even with the life oriented shops, some specialize in FE, others traditional life, etc.

No IMO will be all things to everyone. You must quantify your needs/wants, and then shop around and find the best fit. Some specialize in marketing, others top contracts, others backroom service. I have 5 different IMOs plus a local GA that my contracts are spread between, plus the direct contracts that I have. Each of those IMOs brings something different to the table.

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Almost every contract I have is direct. Probably over 50.
It wasn't until I wanted to market AARP/UHC, and, MAPD's that I finally had to deal with a FMO.

Thats a great example of how working different markets makes a huge difference on your contracting.

In the life market, among the more competitive carriers, I would say around 80% require you to go through an IMO/FMO.

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During the next round of carriers looking for cost savings, FMO's are endangered.

I would disagree. Carriers use FMOs to reduce cost.

It takes a lot of cash to run a call center for 11 hours (min) out of the day. They already have to do this to a certain extent. But if they had all of the questions/concerns/etc call in each day that their IMOs cover, they would have to double or triple their call centers... which would triple to quadruple their cost to run it.

When the IMO gets paid it means that the carrier made money. So it is not an expense, it is a gain.
But when an agent calls the carrier direct and takes up 30min of time. That is a direct expense with no guarantee of profit.

 

[DS4]

When I call my FMO, they tell me to call the carrier.
Never once has my FMO ever answered a question.
Also, they don't return calls.
My only experience with a FMO is they contract you and then you are on your own.

 

[Josh]

When I call my FMO, they tell me to call the carrier.
Never once has my FMO ever answered a question.
Also, they don't return calls.
My only experience with a FMO is they contract you and then you are on your own.

Depending on the question, wouldn't the carrier be able to give the best answer?

 

[scagnt83]

When I call my FMO, they tell me to call the carrier.
Never once has my FMO ever answered a question.
Also, they don't return calls.
My only experience with a FMO is they contract you and then you are on your own.

Depending on the question, wouldn't the carrier be able to give the best answer?

DS4, I would encourage you to find a new FMO. That is the opposite of what you should be told. When my FMOs cant answer a question, they tell me that they will call the carrier and let me know as soon as possible.

As far as calling you back... its rare mine dont return calls in the same day. I would shop around and find a more professional outfit. They exist (at least in the life/annuity world).


Josh,
Yes, the carrier answers some questions better than the FMO. But some carriers are a pain to call and deal with. I was on hold with NA once for 45min waiting to talk to someone in contracting.... I would much rather my FMO suffer through that 45min wait than me... besides, thats what they are paid for.
But for some questions it is easy to call the carrier vs. the FMO. Then again, other questions about a company might need a point of view from someone outside the company that deals with them on that issue... it will be less biased. It all just depends.

 

[AgentWillN]

When I call my FMO, they tell me to call the carrier. Never once has my FMO ever answered a question. Also, they don't return calls. My only experience with a FMO is they contract you and then you are on your own.

That is also my experience. I was given Carrier Appointments with them, but other then that, my FMO really does nothing for me as far as Training (other then the occasional Webinar), Leads, etc!

On that note, does anyone know what Life and MAPD Carriers will appoint Agents directly?

 

[Stephen]

My FMO team scrubs my apps, designs my cases, tracks the case through underwriting, makes sure that I have the appropriate licensing, and cuts my grass on Sundays.

If you picked an FMO solely on the contract level, don't be surprised when their service sucks.

 

[DS4]

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[scagnt83]

On that note, does anyone know what Life and MAPD Carriers will appoint Agents directly?

For life:
Midland
Ohio National
Penn Mutual
Lafayette
Mass Mutual
Guardian
John Hancock
ING

thats just off the top of my head.