FMO vs IMO vs NMO vs MGA; A Comprehensive Guide
FMO vs IMO vs NMO vs GA/MGA; How to Choose?
As an insurance agent, you likely understand or have heard of the value of having a reliable marketing organization by your side. However, with as many different organizations to choose from as there are, it can be an overwhelming choice. You likely have already heard of some of the common Insurance marketing organizations. Yet between FMOs, IMOs, NMOs, and MGAs, you may not know what each organization does and how they can help you progress in your career. This guide will break it all down for you and hopefully give you what you need to achieve your goals!
Field Marketing Organization (FMO)
A Field Marketing Organization, usually referred to as an FMO, is there to provide sales and marketing assistance to independent insurance agents. Often, FMO’s will collaborate directly with insurance carriers to enable agents to present a portfolio of insurance products to their clientele. FMO’s also have access to tools and support, such as the Sunfire Enrollment tool, that can improve the agents ability to sell and enroll.
FMOs also often offer agents a lot of other perks they can’t get elsewhere. For example, our FMO, Agent Boost Marketing, is a nationally licensed FMO. Organizations like Agent Boost Marketing offer independent agents training and support, such as certification or sales trainings. Such tools and perks help agents get a strong start in the industry and grow much more quickly than they would otherwise be able to.
Most of the time, FMOs focus on health insurance products, but occasionally they may offer contracting for life insurance products or other types of ancillary insurance coverage. Agents typically receive pay on a commission basis, and often have production requirements to maintain their commission. It’s also important to note, agents contracted with an FMO who later wish to leave the organization will have to get a release from the FMO.
Independent Marketing Organization (IMO)
An independent marketing organization (IMO) is basically the same as an FMO. Some believe that IMO’s tend to be smaller than FMO’s, resulting in smaller commissions, but this is not always true. FMO’s and IMO’s are functionally the same.
Like FMOS, IMOs are likely to be licensed to sell multiple carriers and licensed in multiple states. IMO’s also work with many agents, and offer them training and support.
National Marketing Offices (NMO)
Similarly, NMO’s are realistically the same as an FMO or an IMO. FMOs or IMOs may refer to themselves as an NMO. NMO is simply more of a universal term for FMOs and similar organizations who do business across the U.S.
Managing General Agents (MGA)
An MGA is a special type of insurance agency/agent or brokerage that is given more authority than a typical agent. MGA responsibilities include things that are typically done by insurers such as underwriting, binding coverage, settling claims, and negotiating contracts. Managing general agents sometimes partner with FMOs, IMOs, or NMOs, though typically as a downline of those organizations. MGA’s usually have their own downline agents, and good MGAs will also provide training and support to their downline agents, much like an FMO/IMO. MGAs earn more commission than standard agents, though not as much an FMO/IMO/NMO.
A Managing General Agent usually has production requirements to keep their status as an MGA. These requirements can vary from one carrier to another. If a Managing General Agent is partnered with an FMO/IMO/NMO, these organizations may have their own production requirements on the MGA as well.
The MGA term is more widely recognized with life agencies. Some MGAs may call themselves brokerage general agencies (BGAs), which is also a common term in life insurance. An MGA/BGA can be a top-level contract, and in life insurance, the MGA contract is the top contract.
GA — General Agents
General agents are much like MGA’s, and can contract under an FMO/IMO/NMO, or MGA. This contract usually allows them to have their own downline agents. Good GA’s should also provide support and training to their agents. GA’s also typically have production requirements to maintain their status.
What’s best for me?
As you may have already gathered, each organization aims to help individuals do their job more efficiently. While levels of trainings, support and commissions can vary heavily between organizations, there is not really a wrong choice. What you choose should come down to who you like, who you trust, and who can offer you the support needed for both you and them to succeed.
If you are looking to get your start in the industry, chat with us today!