Insurance advisors who work with managing general agencies (MGAs) say those firms do a top job in providing solid, two-way communication. That’s because they provide a reliable flow of information, their management is accessible and they make their advisors feel that their opinions are important.

Advisors surveyed for this year’s Insurance Advisors’ Report Card were asked two new questions regarding firm/advisor communication: “firm’s effectiveness in keeping advisors informed” and “firm’s receptiveness to advisor feedback.” MGAs were awarded the top four spots in both categories.

In particular, the MGAs that received the highest ratings in these categories maintain solid communication by keeping advisors up to date with the strategic direction of the firm; have management that’s available; and these firms let advisors know that their feedback will be utilized.

Case in point: advisors with Calgary-based PPI Solutions Inc. raved not only about newsletters the MGA sends out to keep advisors informed but also about the firm’s innovative ways of communicating. Says a PPI Solutions advisor in Alberta: “The firm made its own video when carriers started raising rates and created a point-of-sale piece [on] how it will impact you as an advisor. It isn’t just standard stuff.”

PPI Solutions advisors also praise the firm for enthusiastically soliciting feedback. “They are receptive and candid,” says a PPI Solutions advisor in Alberta. “If something won’t work, they will tell you yes or no, and why. There’s a real dialogue.”

Jim Virtue, president and CEO of PPI Solutions, says the MGA has a leg up in this area because: “We have senior people in all the local offices who have great local relationships with our advisors. We get feedback from them regularly and we select groups of advisors to test and pilot our toolkit operations.”

Access to upper management also was a key factor in Mississauga, Ont.-based IDC Worldsource Insurance Network Inc.’s (IDC WIN’s) success in the category pertaining to receptiveness to advisor feedback. Says an IDC WIN advisor in Ontario: “There’s an open-door policy at the firm. I can get a meeting with any member of our senior management.”

Steady communication is important to IDC WIN advisors, who cite consistent emails as a reason the firm was rated so highly in the category. Says another IDC WIN advisor in Ontario: “Management is very transparent about what’s going on in the business. They always send out memos and emails long before there are going to be any big changes.”

Striking a balance between frequency and efficiency in communication is crucial, says Ron Madzia, president of IDC WIN: “Advisors don’t like being bombarded with emails on a daily basis. They hate that. So, when it comes to product announcements, changes, alternations, etc., we do a weekly bulletin – and the bulletin is listed alphabetically by carrier, and it’s electronic.”

It’s not all positive in these two categories, however. Advisors with Winnipeg-based Great-West Life Assurance Co. (GWL) are disappointed with the level of communication being sent out by their firm’s management. Says a GWL advisor in Manitoba: “Communication doesn’t happen as frequently as you would hope. We’re not really privy to the goings-on at head office.”

However, GWL advisors also feel that although changes rarely arise as a result of opinions given to senior management, regional managers are more than willing to hear what advisors have to say. Says a GWL advisor in Ontario: “At the regional level, the manager is very receptive to my feedback. At the head office, though, they’re more reluctant to make changes.”

That’s a situation that is both acknowledged and fostered by the firm, says Hugh Moncreiff, senior vice president of the firm’s Gold Key distribution network: “Coast to coast, we have Gold Key regional directors who are senior field leaders. They work closely with advisors in their region to be their advocate, to be their business coach. So many of the concerns or issues that we get from advisors go through the regional directors.”

A common complaint among advisors who ply their trade with Mississauga-based RBC Life Insurance Co. was the complete absence of any forum for feedback. Says an RBC Life advisor in British Columbia: “There is nothing in place to allow for feedback to be fed back up the chain.”

© 2012 Investment Executive. All rights reserved.