Do Independent Insurance Agents Have to Work with an IMO?

In the insurance industry, there are two main types of agents — captive or independent. While there are many advantages to being a captive agent, being an independent insurance agent provides you with a lot of freedom, from setting your own schedule to choosing among a variety of insurance carriers to running your own business. 

At the same time, there are some extra challenges that independent agents will have to face. This includes not having a large team on your side providing you support for sales, marketing, branding and many more things. 

This is why many independent insurance agents will work with what’s known as an IMO, or an Independent Marketing Organization. But, do independent insurance agents have to work with an IMO? 

The quick answer is no, but we’ll discuss below the many benefits that an IMO provides independent agents.   

What is an Independent Marketing Organization? 

An IMO is a company that essentially serves as a partner for independent insurance agents. They can be seen as a bridge between the agent and various insurance carriers.  

Different IMOs offer many different things, but most will provide base support with training, marketing, recruiting, quoting and contracting. They’ll also have solid relationships with multiple well-known insurance carriers that allow independent agents to more easily access the plans the carriers offer. 

Independent insurance agents are alone in the sense that they don’t have the backing of a large insurance carrier that provides them with all of these resources, plus a set work schedule, base salary and potential to earn commissions. 

Instead, independent agents are essentially small business owners who must establish their own book of business without that support from a large corporation. Partnering with an IMO ensures that these independent agents don’t have to go it completely alone. 

How Does the Relationship Between an Independent Agent and IMO Work? 

The partnership between independent insurance agents and IMOs truly is mutually-beneficial. That’s because most IMOs don’t charge a fee to agents to work with them. 

Instead, IMOs get paid directly from insurance carriers when the agents they work with make sales. In other words, IMOs are incentivized to help support independent agents since that’s how they make their money. 

This provides a win-win scenario for both independent agents and IMOs. In addition, it’s a win-win for the agents themselves, too. Not only do they get the amazing support, access and services that the IMO provides, but they also get it without having to come out of pocket for another monthly expense line item.  

They can grow at their own pace, keeping a large percentage of the commissions associated with the sales, versus the small commissions that they would make working as a captive agent. 

Do Independent Agents Get Access to Carriers When They Work with an IMO? 

Perhaps the biggest benefit of working with an IMO is the access that independent agents get to a large variety of well-known and respected insurance carriers.  

As mentioned before, one of the main advantages of being an independent agent is the ability to sell insurance products from whatever carrier you choose. Unlike captive agents, independent agents don’t have to just sell products from one carrier.  

This provides the agents themselves with more choice when it comes to what products they want to offer, and what commissions they can earn. In turn, it also provides their clients with more choice, too, which can help drive more business. 

That being said, it’s not easy to get insurance carriers to agree to let you sell their products. Many times, new independent agents will be blocked from having access to some of the largest, most well-known carriers, simply because they’re not established in the business. 

When independent agents work with IMOs, they get this access. The IMO serves as the go-between from the agent to the carrier, essentially vouching for the agent to the carrier.  

This access could be valuable enough in and of itself to justify the benefits of partnering with an IMO. Then, on top of that, independent agents get all of the other support, training and tools they would need to succeed. 

Get Started on Your Good Life as an Independent Insurance Agent 

Independent insurance agents aren’t forced to work with an IMO. However, it is almost always in their best interests to do so. 

Experienced IMOs such as Good Life Insurance Associates empowers independent insurance agents to succeed in their business, providing support, training, tools and access to large, well-known insurance carriers. 

For more information, or to get started, please contact us today.