Prevention is the New Solution

Guess what? You don’t actually need to appoint those producers right now. If this sounds crazy and counterintuitive, keep reading to learn about the beauty of Just-In-Time (JIT) appointments, and how they can help you grow your distribution channel in the most cost-effective way. 

Typically, we at AgentSync are the ones cautioning you to pay attention to every detail of your licensed and appointed producers’ compliance status, including making sure everyone who needs to be appointed with your carrier or MGA is. We haven’t changed our stance, and we’re not going rogue. It’s just that many insurance carriers and MGAs/MGUs don’t understand or take advantage of an effective cost-saving tool: The JIT appointment. 

What are Just-In-Time appointments? 

Traditionally, carriers and MGAs/MGUs needed to appoint a licensed agent before that agent began selling, or even talking to customers about, their products. JIT appointments change the game by allowing agents to begin the selling process and become appointed by insurance carriers once their first piece of business has been sold. If you’re interested in learning more about what they are, we’ve previously written about the history behind the emergence of JIT appointments, and the technology that enables them to work. 

Woman holding a clock in front of her face

What are the benefits of Just-In-Time appointments? 

Money. It may not be the answer to all of life’s questions, but cost-savings is the No. 1 benefit for carriers and MGAs/MGUs that take advantage of JIT appointments. Instead of paying each state’s fees to appoint licensed producers who may or may not actually sell your insurance products, JIT appointments let you make better use of your money by only paying appointment fees for producers who are actively selling.  

How much money can you save by using Just-In-Time appointments? 

The answer to this question is that it depends entirely on how many producers you appoint but who never write any business with your company. If you’re lucky, this is a very low number and you don’t really need to leverage JIT appointments. If you’re like most insurance carriers though, the number of unproductive producers can be pretty high. 

A conservative dollar estimate relies on some simple assumptions and calculations. If an insurance carrier has 100 producers to appoint in five states at a cost of $20 per producer, per state, they’re looking at $10,000 in appointment fees. If only 80 percent of those producers sell a policy, the carrier has spent an unnecessary $2,000 (or 20 percent of its appointment fees) to appoint agents who don’t bring in any income. 

With state appointment fees varying greatly, $20 is actually a low estimate. And assuming 80 percent of appointed producers will sell in all five states is also being generous. In reality, the fees could be higher and the producers could sell across fewer states, if they sell anything at all. This example is also small-scale, meaning insurance carriers with more than 100 agents selling on their behalf will have even greater potential cost-savings from JIT appointments. 

Why don’t more carriers and MGAs take advantage of Just-In-Time appointments? 

There are several common barriers that keep insurance carriers and MGAs/MGUs from leveraging the cost-savings of JIT appointments. While most states allow JIT appointments, many carriers and MGAs/MGUs aren’t using the opportunity they’re afforded. 

One main reason for this lack of adoption, even when it makes perfect sense, is carriers and MGAs/MGUs are missing the technology needed to make JIT appointments work without worrying about the “what ifs.” 

What if we forget? What if we miss someone? What if a producer starts selling but we didn’t realize it? We get it! The idea of JIT appointments can seem like a risky one for carriers who understand the full ramifications of a non-appointed producer selling their products. 

This is why adopting the right technology is vital. With AgentSync, there’s no worrying about “what if.” Real-time NIPR integrations, data syncs using APIs, and workflow automations ensure your producer’s appointments get submitted and paid when they need to be – and with JIT functionality, only when they need to be! 

To learn more about how your carrier, MGA, or MGU can reap the benefits of JIT appointments, see AgentSync in action today.


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