Why Rightsourcing is the Smart Move for BGAs in Today’s Market

Tom Gray | Founder & CEO, Employee Pooling, LLC

“If you try to do everything, you will do nothing well.” – Henry Ford

Growing pains.  They kept us up at night as children, and they keep CEOs and CFOs up at night in today’s business world.  The billion-dollar question is simple enough: How can we grow our business without the pain? When I translate that question to our industry, it reads slightly differently.  

How can a brokerage sustainably grow revenue while ensuring its key personnel can maintain high standards and continue delivering exceptional white glove service to agents and clients?

The life insurance industry faces unprecedented challenges in maintaining profitability while scaling operations. For Brokerage General Agencies (BGAs), the solution lies in strategic rightsourcing – the practice of optimizing workflows by creating an ideal balance between in-house and external resources.

Let’s return to that infamous saying, “If you try to do everything, you will do nothing well.”  

When we attempt to excel in too many areas simultaneously, we dilute our time, energy, and resources. Each additional commitment reduces our attention to existing priorities, potentially turning what could have been excellence into mere adequacy. 

The Busiest Bee Still Needs to Land

Our industry involves many intricate processes that span multiple disciplines and skill sets.  Even before an application begins, agents look to BGAs for up-to-date information on the latest carrier offerings and risk-management trends.  They seek assistance in presenting comprehensive solutions to their clients. They require access to the latest technology and tools to help them procure and process business.  

They do all of this before the application.  

The list after their client applies is even more exhaustive.  Underwriting, back-and-forth communication with the carrier representatives, follow-up status reporting, medical record collecting, commission management, policy reviews, and on and on.  How any brokerage can focus on recruitment while simultaneously managing all these tasks is a small miracle. Rightsourcing means giving your company time to focus on the 20% of their tasks that make up 80% of their profits: recruitment, strategic planning, and business growth.  It means reducing staff turnover and running a faster, more optimized enterprise through streamlined workflows and automated processes. The real edge here is the time savings.  But it doesn’t hurt that it can also save companies a significant amount of overhead in the process.

The Financial Advantage 

The numbers tell a compelling story. BGAs can reduce payroll expenses by up to 49% by rightsourcing essential tasks to an experienced, dedicated case manager. This dramatic cost reduction doesn’t come at the expense of quality; in fact, it often enhances it. It’s also important to note that this doesn’t mean your in-house case managers will become obsolete. Instead, it brings a sense of balance to the team; cases are managed more efficiently, with cycle times improved by at least 20 days. Faster cycle times equal increased placement rates.

Solving the Scalability Challenge

One of the biggest hurdles BGAs face is managing seasonal fluctuations in business volume. Traditional staffing models force agencies to either overstaff during slow periods or scramble to meet demand during peak times. Rightsourcing eliminates this dilemma by providing flexible access to skilled professionals who can be scaled up or down as needed.

Beyond Cost Savings: Operational Excellence

While the financial benefits are significant, rightsourcing offers advantages that extend far beyond cost reduction:

Expertise On Demand: Access to specialists in licensing, contracting, underwriting, and commission management who stay current with industry best practices and regulations.

Technological Edge: Leverage advanced software platforms and processing systems without the burden of implementation and maintenance costs.

Quality Assurance: Dedicated management hierarchies ensure consistent service delivery and maintain high performance standards.

Keeping Both Hands on the Wheel

As the life insurance industry evolves, BGAs embracing rightsourcing position themselves for sustainable growth. By optimizing operational costs, ensuring scalability, and maintaining high service standards, agencies can focus on what matters most – growing their business and serving their clients.

The question isn’t whether to use rightsourcing but how to implement it effectively. With the potential for up to 57% cost savings and improved operational efficiency, BGAs that make this strategic shift now will find themselves at a significant competitive advantage in the years ahead.

Making the Transition

For BGAs considering rightsourcing, the timing has never been better. The industry’s shift toward digital processes and remote work has created an environment where outsourced teams can seamlessly integrate with existing operations. The key is choosing a partner with deep industry expertise and a proven track record in the life insurance sector.

The Right Partner Makes the Difference

Employee Pooling (EP) stands out in the rightsourcing landscape by offering comprehensive Insurance-Focused Process Management Solutions in a secure environment. By dedicating fractional shares of departmental specialists, EP ensures BGAs receive consistent, high-quality service across all critical functions – from application processing to commission reconciliation. Rather than spreading your resources thin, you create a focused operation where both internal teams and external partners can deliver outstanding results, driving sustainable growth and success (without the pain).