Becoming a Brokerage General Agency (BGA) in the insurance industry can be a lucrative and rewarding business model, but it requires a solid understanding of insurance, a network of contacts, and the necessary licenses and infrastructure to operate. As a BGA, you will work with independent agents and brokers to sell insurance products from multiple carriers, and you may also recruit agents to grow your business.
Here’s a step-by-step guide on how to become a Brokerage General Agency:
Before starting a brokerage general agency, you should have a deep understanding of the insurance business, including:
To legally operate as a BGA, you'll need to meet certain licensing and registration requirements:
When choosing a legal structure, consider an LLC for its flexibility and liability protection.
Becoming a Brokerage General Agency (BGA) is an exciting opportunity, but it requires substantial preparation. With dedication and planning, you can build a successful agency that drives growth for your business and agents.
Get Started TodayTo become a Brokerage General Agency you generally need an active insurance license and production history, a business entity and any required agency licensing, carrier or IMO relationships that let you build a downline and earn overrides, back-office and case-management capability, and a plan to recruit and support agents. Many new BGAs partner with an IMO to get carrier access and override structure without building everything from scratch. See how to become a BGA and what a BGA does.
Costs vary widely depending on staffing, technology, and office setup, but the main investments are agency licensing, a case-management and CRM platform, and the team to service business. Partnering with an established IMO can reduce upfront cost by providing carrier contracts, technology, and back-office support.
For producers who want to build recurring override income and scale beyond personal production, a BGA can be very worthwhile. Success depends on carrier depth, underwriting and service quality, and the ability to recruit and retain agents. The right IMO partner accelerates all three.
Most BGAs take a few years to build meaningful override income, since it depends on recruiting agents and growing placed production over time. Strong training, underwriting support, and marketing shorten the ramp.