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A Field Marketing Organization (FMO) (also called an Insurance Marketing Organization (IMO), or Medicare FMO) is a company that offers insurance products, services and support to independent insurance agents or insurance agencies.
Most FMO’s will normally offer services above and beyond insurance products, but the insurance industry services offered will vary by company.
We will review some of the products and services you should look for, as well as important questions to ask, before you start working with an FMO.
Like with any business, having the right agent support team can help supercharge your success.
While there are a small handful of carriers that will contract agents directly, the vast majority of name-brand, competitive insurance carriers will require you to work through an FMO to obtain their products.
In general the ability to work directly with the carrier, if available at all, will be challenging as they prefer to contract with agents or agencies that can meet certain profitability objectives.
An FMO can offer contracts to agents that they might not be able to acquire individually. They can do this because of the volume and relationship the FMO has developed with the carriers. This puts an FMO in a unique position to have a quality selection of products to offer agents.
A good FMO will work consistently to get the best contracts with top companies, and offer them to agents and agencies of all sizes. They should be a pillar of support, helping you maximize your efforts, and allow you to focus on supercharging your business.
Some FMO’s will offer full, vested commissions on your sales. You would not get paid any more if you were contracted directly through the carrier, even if it were available. In addition to vested commissions, you may find additional benefits and incentives working with an FMO versus going direct.
Additional Support may vary from FMO to FMO, so make sure to compare. Usually they will have available tools and resources like: CRM Tools, Quoting Tools, Lead Programs, Marketing Support, Certification Support, AEP Support, and more.
Independent:
An Independent Insurance Agent is not an employee of another agency. They are free to contract with any company they feel is a good fit for their business. They are their own boss, they set their own hours, and choose the products they want to go to market with.
An Independent Agent has more freedom to choose how they do business and will enjoy a higher commission on his contracts.
Captive:
A Captive Agent works for a company or agency. They are required to take on the products chosen by the company they are employed with. Typically, Captive Agents earn lower commissions than Independent Agents, but receive more support.
Nevertheless, the added support and training they receive will come at the cost of lower commissions.
Regardless of whether you end up contracting as a Captive or Independent Agent, make sure to fully understand the Release Policy of the FMO you choose.
Some FMO’s offer an Open Release Policy, meaning:
If at any time you want to part ways with the FMO, you simply ask for a release, stop working with the company, and still retain your book of business.
There are some good FMO's out there that will offer a straight up release policy with no strings attached. This type of relationship will allow the most flexibility with your business.
This relationship allows agents to operate like a business and not get locked into something that may not be in their best interest.
Other FMO’s offer limited release options, which may not allow an agent to be released easily, or won’t allow an agent to retain their book of business. This means that the business the agent generates while working with a company, should they decide to leave, may belong to the FMO and NOT the agent.
Note! It is essential to be clear on this point before selecting an FMO! Some FMO's will have strings attached to a release policy that may not be in favor of the agent.
Make sure to ask about their release policy and understand it completely before contracting with any FMO.
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FMOs generally provide agents and brokers access to a CMS (Centers for Medicare & Medicaid Services) approved quoting tool.
This will enable you to quote Medicare Advantage Insurance Plans (Medicare Part C), Medicare Supplement Insurance Plans (Medigap Policies), and Medicare Part D Prescription Drug Plans.
Ask the FMO if their quoting tool offers full disclosure and is not filtered or hiding carriers from your view. This is important if you want to get a complete view of the market.
FMOs that want to help you compete more effectively will usually offer customer relationship management (CRM) tools to help agents streamline their business process.
This software will help you keep track of your client from first contact through the enrollment process, and offer a calendar and reminder system to ensure you know what you need to do – daily, weekly, and monthly – to help you build your business.
[ Recommended: CRM and Quoting Tool for Agents ]
FMOs offer a range of products to help you build the perfect portfolio, ensuring you remain competitive in your market space.
A strong FMO will generally offer agents and brokers with a wide range of product options, including regional and national health plan options from brand name insurance companies with highly ranked plans.
Two of the most valuable benefits offered by an FMO are:
Help getting your required annual sales certification (or re-certification) from AHIP (America’s Health Insurance Plans) and Product training for your contracted carriers in he senior market.
While certification for specific products will be required no matter which FMO you work with, some will offer reduced rates for required AHIP training.
A good FMO will notify you when new certifications are available each year.
[ Recommended: What is AHIP Certification and How do I Get it? ]
Experienced agent support is a must for an independent insurance agent. Whether that's providing you with quality marketing materials, or helping with lead generation, a good FMO will have an experienced team with deep industry and product knowledge along with the understanding of being an agent in today’s marketplace.
Many may be or have been agents themselves. The company should assign you to a marketer that will treat you like a business owner and a partner, and have your success in mind.
A good FMO knows that they are successful only when the agents they work with are successful.
Make sure to align yourself with an FMO that will give credit where credit is due. Ensure the company will provide a commission level that will increase as your production increases.
You work hard to grow your business, and an FMO should recognize your efforts with "upper level" contracts for you to grow into.
They should also be helping you with your portfolio strategy to maximize your sales. If you're in Medicare sales, they can help you cross market life or Annuity products on top of your Medicare market products.
If you're an Annuity or life insurance sales professional, an FMO could help you move into selling Medicare Insurance products or Medicare Advantage plans, as these are products relevant to your existing customer base.
Business growth should be a priority not just to you, but the Insurance FMO you work with as well.
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If your potential FMO offers most, or all of the above, ask if any of your associates are already doing business with them. The best reviews come from people currently working with an FMO, who can share their experience and quickly help you determine if it’s a proper fit.
It’s also a good idea to speak with a rep from the FMO to get an idea what kind of support you will receive, and to get a feel for the attitude of the employee.
Try to get an idea of the turnover rate at the company. A good FMO will usually have a core of experienced marketers that have been there for years.
Choosing an Insurance FMO is like choosing a business partner, and having support outside of the insurance carrier is important while building a block of business. It's important to ensure the FMO will be providing the best products and services for your business.
Even a superhero needs support from time to time. A good FMO can provide that kind of support. Just make sure you do your homework and ensure they have your best interest in mind.
We hope you find the right partner that will help you supercharge your business!
What is the function of an FMO in the insurance industry?
An FMO, short for Field Marketing Organization, provides sales and marketing assistance to independent insurance agents. By collaborating with a variety of insurance carriers, FMOs enable agents to present a portfolio of insurance products to their clientele, and have access to tools and support that FMO's provide.
What is an upline in the insurance industry?
In the insurance industry, an upline refers to individuals or agencies that recruit newer agents into their network. These uplines benefit agents by providing support in their sales process, and in return, benefit financially from a small portion of the sales generated by their recruits, known as downlines.
How do FMOs get paid?
An insurance carrier asks an FMO to sell their products. The FMO works with licensed agents by giving them support in order to help them sell the products they offer. The FMO then earns an override based on what is sold. The override an FMO gets does not affect the Agents compensation in any way. Insurance companies pay the FMO for marketing their products and dealing directly with agents.
What is the difference between FMOs and IMOs?
There is no difference. The terms are often used interchangeably, a Field Marketing Organization (FMO) or an Insurance Marketing Organization (IMO) refers to a company that specializes in offering insurance products, services, and support to independent agents or agencies.
What happens to my earnings if I switch from my current Medicare FMO to a different one or work directly with an insurance company?
If you move to a different FMO or work directly with an insurance company, you'll still get your renewal commissions for the sales you made with your old FMO. This is because your contracts are usually made directly with the insurance company itself. However, if your commissions were paid by the insurance company through your old FMO, what happens next will depend on the agreement you had with that FMO.
* For Agent use only. Not affiliated with the US government or federal Medicare program.
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*“Not affiliated with the U. S. government or federal Medicare program. This website is designed to provide general information on Insurance products, including Annuities. It is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that PSMBrokerage, its affiliated companies, and their representatives and employees do not give legal or tax advice. Encourage your clients to consult their tax advisor or attorney.
