I have no doubt that the commissions will be cut eventually. I think the MLR will be adjusted accordingly in our favor so that we will not see great cuts to our commission pre 2014. I don't think the carriers can survive if they cut themselves off at the knees- cutting the sales force commissions. The success of a company is built upon the backs of the salesman. Until the marketplace changes in 2014, my belief is that we will not see drastic changes in our commission.
Commission Cuts Effective January 2010?
- Thread starter treeves
- Start date
- 2,455
I don't know where they are going but the more you guys say what percent you are willing to take then the more the insurance companies know what they can get away with.
Some of you guys would be lousy poker players. Commissions shouldn't be talked about in public when we are at the mercy of those with preying eyes. Then again, I have never meet one producer who has even heard of this forum and I am not a big producer myself. I consider a producer, someone making over 100k year after year (at least in health). I don't know any health agent strictly doing health that makes that kind of money but I'm sure they are out there. My buddy works with a guy at BCBS who supposedly makes about 175K a year. I meet him. What a real A HOLE too. Why anyone would buy from him is beyond me
Some of you guys would be lousy poker players. Commissions shouldn't be talked about in public when we are at the mercy of those with preying eyes. Then again, I have never meet one producer who has even heard of this forum and I am not a big producer myself. I consider a producer, someone making over 100k year after year (at least in health). I don't know any health agent strictly doing health that makes that kind of money but I'm sure they are out there. My buddy works with a guy at BCBS who supposedly makes about 175K a year. I meet him. What a real A HOLE too. Why anyone would buy from him is beyond me
I am not currently selling health, but am thinking about buying an existing health book.
Assuming a 20% first year and a 8% following year commission, (Your mileage may vary), isn't it still possible for the Insurers to keep a 80% MLR.
The Insurer is not paying out 20% every year, they are paying out an average of about 10% commission over a 5 year period.
The first year MLR would be lower, but renewal years would be higher.
Am I wrong with this line of thinking?
Assuming a 20% first year and a 8% following year commission, (Your mileage may vary), isn't it still possible for the Insurers to keep a 80% MLR.
The Insurer is not paying out 20% every year, they are paying out an average of about 10% commission over a 5 year period.
The first year MLR would be lower, but renewal years would be higher.
Am I wrong with this line of thinking?
I don't know where they are going but the more you guys say what percent you are willing to take then the more the insurance companies know what they can get away with.
Some of you guys would be lousy poker players. Commissions shouldn't be talked about in public when we are at the mercy of those with preying eyes. Then again, I have never meet one producer who has even heard of this forum and I am not a big producer myself. I consider a producer, someone making over 100k year after year (at least in health). I don't know any health agent strictly doing health that makes that kind of money but I'm sure they are out there. My buddy works with a guy at BCBS who supposedly makes about 175K a year. I meet him. What a real A HOLE too. Why anyone would buy from him is beyond me
OB.. I do health ONLY and meet the factors of your post... Yes... I agree, some people on this board should shut their fing mouth about commissions and what they would take...
- 1,861
Pipe dream.
As I recall, come 2014, if even one employee of a group shows up in the exchange, the business gets the no coverage penalty for the entire group.
Another possibility I could see is instead of having a large commission up front and a low commission on renewal, maybe they would balance it out at X% for new and renewals.
If the first year is lower, but they raise the renewal commission, that would make it easy for the insurance company to stay within the 80%, plus they would be more profitable in the respect that agents won't tend to keep changing carriers to grab the first year premium.
Thoughts?
If the first year is lower, but they raise the renewal commission, that would make it easy for the insurance company to stay within the 80%, plus they would be more profitable in the respect that agents won't tend to keep changing carriers to grab the first year premium.
Thoughts?
- 2,024
The RGA from Assurant here basically laid that out, that they expected the GA contract to be something like 12.5% and 8% for renewals, so 50% cut in 1st year and a 25% increase in renewal. That was according to what they were talking about with their home office.
- 14,808
If in fact that came to fruition I'd be quite happy. 12/8 is enough for agents to make a great living since the thick layer of "tank is running on empty" agents would cash out.
