Commission Levels

[insurehound]

Hello all, just curious to see what the average commission levels are in the IDI market. My current GA provides roughly a 50% first year and a 10% years after which to me, is low. One would have to have a lot of production/bigger cases to make that work.

 

[dgoldenz]

60-70% first year, 5-17% renewals depending on company. Average premium should be around $2-3k, plus if working with younger clients/physicians a lot more can be added through FIO's over the years.

 

[insurehound]

60-70% first year, 5-17% renewals depending on company. Average premium should be around $2-3k, plus if working with younger clients/physicians a lot more can be added through FIO's over the years.

Do you work with a GA or go direct? I seem to be on the low side. Thanks for the info.

 

[dgoldenz]

Do you work with a GA or go direct? I seem to be on the low side. Thanks for the info.

One GA for Guardian, another GA for all others.

 

[bill3173]

I probably don't have the best DI contracts, but I've found the hard way that if you get with the wrong carrier on a tough DI case, you will forget about the commission and wish you had gone with someone else.

Just finished placing a case that would have been simple as pie with PFG, but for his occupation the rates were better with carrier x, and the commission was actually higher, so I thought that it would be a win/win.

It took six weeks to place the case, not because of the client's health, but technical issues that really didn't make any sense. The accountant was pulling his hair out because of the odd requests from uw. It was as if they didn't know what they were looking at, on the client's return.

It actually became embarrassing. If it weren't a name brand carrier, that the accountant spoke to directly, he would have probably blamed me.

 

[NCAgent]

I probably don't have the best DI contracts, but I've found the hard way that if you get with the wrong carrier on a tough DI case, you will forget about the commission and wish you had gone with someone else.

Just finished placing a case that would have been simple as pie with PFG, but for his occupation the rates were better with carrier x, and the commission was actually higher, so I thought that it would be a win/win.

It took six weeks to place the case, not because of the client's health, but technical issues that really didn't make any sense. The accountant was pulling his hair out because of the odd requests from uw. It was as if they didn't know what they were looking at, on the client's return.

It actually became embarrassing. If it weren't a name brand carrier, that the accountant spoke to directly, he would have probably blamed me.

Why does that sound like Mutual of Omaha

 

[toehill]

It is true. From what I have learned commission is a small part of the deal. Forming the relationship with the people at the insurance company is just as important.

You can be getting the highest commission on paper but if the deal is a PIA it is not worth the extra %.

 

[bill3173]

Why does that sound like Mutual of Omaha

It was like the Seinfeld episode where Kramer was fired from his fake job, the CPA told the UW, "I don't even know what you're requesting, it's as if you have no business training at all".

 

[BNTRS]

Wait, some underwriters aren't all that bright? Heresy!