General Agent Future

[njinsuranceguy]

I wonder if the same thing is happening in the rest of the country as it is in NJ with regards to Ga's. The carriers here took out the ga wording on the bors and named them as co-brokers with the broker. They don't distinguish anymore. Is this because comp for the ga is going away? I know here some of the ga's are starting to develop fee structures and others have started their own brokerage firms under different names. Anyone else seeing this in their parts?

 

[ABC]

The reason for this is GA may not be able to participate in the exchanges.

 

[njinsuranceguy]

The reason for this is GA may not be able to participate in the exchanges.

Yeah, finally got the word from one of the carriers. There is no room in the exchange for the GA. I really don't think this is a bad thing. I would much rather go direct and do with all but 1. Unfortunately, the one I can't go direct with is usually one of the hottest in the market.

 

[NYinsurance417]

I have been told by my GA rep that several small GA's will be eliminated. The benefitmalls are the players.

 

[njinsuranceguy]

I have been told by my GA rep that several small GA's will be eliminated. The benefitmalls are the players.

I could see that. If I were you I would start talking with reps directly about going direct. If you sell on the exchange, I've heard the ga is cut out.

 

[NJBroker]

The NJ-NY metro area is a bit unique with GAs having so much control over distribution. In most other parts of the US, brokers go directly to the carrier and those brokers don't get as much hand holding as NJ/NY brokers do. I think their role is much more at risk then the retail broker and that is why you are seeing such a push for co-brokering, fee based services and selling retail. They just need to survive like the rest of us. One thing this environment is doing is making it harder for those that 'dabble' in employee benefits to rely on the GA to do all the technical work for them.

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I have been told by my GA rep that several small GA's will be eliminated. The benefitmalls are the players.

True.....the biggest NJ carrier happens to be the most GA friendly and even with cuts, still have the most GAs....for now....