AHCP--Holy Crap!

[Crabcake Johnny]

COInsguy: totally agree. Selling CI/Accident plans will NOT make up for lost income if health commissions tank. If it were that easy to sell these products everyone would have been doing it all along.

Selling CI and accident plans are tough. What needs to be discussed is if comp tanks come Jan. 2011 agents need to focus on other lines of insurance.

So what will comp be come Jan 2011? Anyone have a dart?

 

[moonlightandmargaritas]

So what will comp be come Jan 2011? Anyone have a dart?

8% first year, 2% renewals. Take it to the bank.

 

[Crabcake Johnny]

So let's get real. Agents have a tough enough time getting off the ground now at 20% with huge advances through most carriers.

 

[dgoldenz]

So let's get real. Agents have a tough enough time getting off the ground now at 20% with huge advances through most carriers.

There's always life insurance.

 

[Crabcake Johnny]

Maybe I'll start a thread on agents I know who tried to switch from health to life but there have been a few excellent threads - very detailed - about switching to life. Agents thinking about making the switch should make those threads their Bible.

 

[COInsguy]

COInsguy: totally agree. Selling CI/Accident plans will NOT make up for lost income if health commissions tank. If it were that easy to sell these products everyone would have been doing it all along.

Selling CI and accident plans are tough. What needs to be discussed is if comp tanks come Jan. 2011 agents need to focus on other lines of insurance.

So what will comp be come Jan 2011? Anyone have a dart?

Health Agents will not evaporate. This is clearly the doom and gloom view. It's too important of a decision and agents will always play a role in the sale of insurance. We also know that it's not cost effective for carriers to have direct sales force in house.

Of course agents should be offering other lines, but what does that mean.

ALL the big health shops (I won't name drop) have a life department that turns in laughable production for how many agents they have. Why? they don't do life. It's the Jack of all trades king of none problem.

Extraordinary times will create extraordinary opportunity for some and demise for most. This will push many agents out of biz thats a given. Offering Top producer club meetings to show them how to sell CI/Accident is a flat joke. My agents already add an accident policy on 1 in 3 apps and sell a CI 1 in 5. The accident plans make for great beer money but aren't going to take me and the kids to Disney world this fall.

 

[Crabcake Johnny]

Let me expand on my thoughts:

Career health insurance agents will be in the game unless there commissions are no longer available. I know more than a few very successful local agents who only sell Carefirst BX at around $20/mo flat. Comes out to be around 8%.

Many agents have been selling at 10% or under for years. Agents who need that $1,000 advance check next week will be toast but that also means more business for career agents.

Now all that needs to be discussed is out of 100 agents selling individual health, what percentage would be "career" health insurance agents - not in need of advanced commissions or 20% comp to stay in business? 10% - a guess but it's a good guess.

 

[COInsguy]

Let me expand on my thoughts:

Career health insurance agents will be in the game unless there commissions are no longer available. I know more than a few very successful local agents who only sell Carefirst BX at around $20/mo flat. Comes out to be around 8%.

Many agents have been selling at 10% or under for years. Agents who need that $1,000 advance check next week will be toast but that also means more business for career agents.

Now all that needs to be discussed is out of 100 agents selling individual health, what percentage would be "career" health insurance agents - not in need of advanced commissions or 20% comp to stay in business? 10% - a guess but it's a good guess.

Would have to agree. I'm very thankful I built my agency using some advance carriers and some as earned for myself. Most are check 2 check.

 

[Crabcake Johnny]

That's not to bust an anyone needing advances to get off the ground. I did. Not many people have around 6 months of household bills saved plus marketing money.

 

[ksigmtsu]

I got really lucky, I got in with 1 year worth of advances before the change to as-earned that's happening in December. Just enough time to build a book of around 200 total clients before the change between medicare and health, so my as-earned should be good enough to carry me through now. It's almost perfect for someone that started last November.

I can't imagine now, you'd need like 10 grand in savings to start out as a health agent.