Many businesses rely on wholesalers for product distribution, and the agency side of the insurance industry is no different. Insurance wholesalers, often referred to as field marketing organizations (FMOs), provide insurance agencies access to the products they broker and offer their customers.

FMOs should serve two distinct roles: an indispensable linchpin connecting insurance agencies with the right insurance carrier products and a strategic growth partner.

Choosing the right insurance FMO can significantly impact an agency’s efficiency, competitiveness and overall client satisfaction. Here are five considerations insurance agencies should keep in mind when selecting an FMO.

1. Product Category Expertise

Different FMOs often specialize in specific areas of risk, from Medicare Advantage and Medicare Supplements to life insurance or other niches such as hospital indemnity, dental, cancer or disability.

As an insurance agency owner, it’s crucial to choose an FMO with a strong track record and in-depth knowledge in your areas of focus. They should be able to facilitate precise growth strategy execution, help capture specific market share and provide invaluable advice for more complex insurance scenarios you or your sales team may face.

2. Carrier Relationships

An FMO’s relationship with its carrier partners is another key factor to consider.

The strength and depth of these relationships can directly influence the scalability of your growth strategy by bringing unique business development opportunities and strategic partnerships. An FMO with robust, long-standing carrier relationships is more likely to help you secure key relationships that facilitate sales growth.

3. Responsiveness And Support

Just like any other business, impeccable customer service and prompt responsiveness are vital in keeping operational processes in an insurance agency running smoothly.

Timeliness in handling requests, quote turnarounds and navigating carrier negotiations can make a significant difference in client satisfaction and the overall efficiency of your operations. Hence, select an FMO that values and delivers excellent customer service, consistently communicates and promptly addresses any issues or concerns.

4. Deployable Technology

As the insurance sector continues to embrace digital transformation, the technological prowess of an FMO becomes increasingly important.

FMOs should have sophisticated technology to help streamline processes, improve data accuracy, and expedite service delivery. For example, ask the FMO whether they offer streamlined quoting, enrollment, commission processing and customer retention reporting in a consolidated system that can be accessed independently or via API through your existing agency management system.

This is a critical area to ask questions about during your selection process.

5. Compliance Capabilities

Compliance is a moving target that is consistently adapting to the changes in the insurance industry, especially given how fast technology is moving.

Insurance agencies should ensure that the FMO they choose not only adheres to the various state and federal regulations for their specific product lines but can also serve as a resource to help the agency service their customers in a compliant way.

For example, an agency may have a marketing initiative they want to use to generate new Medicare customers, and the governing entity, CMS, may require approval for all customer-facing lead generation. Ask FMOs whether they have the ability to not only provide guidance but also submit the initiative for approval and manage it to completion.