MGM Assurance, the life, investment and pension company is launching a new scheme to work with tied ...
MGM Assurance, the life, investment and pension company is launching a new scheme to work with tied agents who have complementary resources.
Called Master Associate Alliance, the scheme is designed to encourage tied agents to increase income, improve customer relationships and generate cross-selling opportunities by forming an alliance which pools expertise and resources with the aim of increasing income.
All businesses involved must be MGM-appointed representatives however the plan is to keep members as separate business entities.
One of those businesses will be nominated as the "Master Agency" and others will be "Associate Agencies".
According to MGM, a master could be a specialist in a particular field whic is looking to broaden its client base or services. By teaming up with a local agent specialist, MGM says it can do so while giving the Associate the opportunity and resources to access its larger clients.
The profile of a Master agency is likely to be a large business with a minimum two-year track record of around £150,000 annual net issued premium income, together with a sound infrastructure.
The Associate agency, meanwhile, will generate at least £50,000 annual net issued premium income. Both Master and Associate must have the ability to help each other expand their businesses, says MGM.
It will fall to the Master and Associate to decide on how commission and Credit Premium Income (CPI) is split, set up legal agreements and negotiate notice periods.
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