Commission Percentage Research in Texas

[ABarnes]

Hey guys I'm doing some research on commission percentages for brokers in Texas. What are your thoughts on a 12/7/3/3/3 commission percentage for MM individual health policies? Meaning 12% year 1, 7% year 2, and so forth.

Thanks for any thoughts or suggestions.

 

[YouGotMyMoney]

which carrier is this for?

 

[taterpeeler]

who are you and why are you doing this research

 

[ABarnes]

Its research for a smaller regional carrier in the Central Texas area, I am in charge of expanding the agent production for individual sales. I don't have the resources that some of the major carriers do, but I would like to be as competitive as possible. Any ideas that would help me to help gain some traction would be great.

Just trying to gain some insight, no conspiracies going on.

Thanks!

 

[STIBROKER]

Its research for a smaller regional carrier in the Central Texas area,!

that must be Scott and White then...............

 

[Crabcake Johnny]

12% FYC is going to pretty much put you on par with the other players; UnitedHealthOne, Humana, Cigna, Assurant, etc...

 

[ABarnes]

Alright you got me Scott... anyway, I'm trying to redesign some things on the individual side to make us more attractive. We've recently changed our product lines to make things better for our consumers, now just looking to make our commission as good as they will let me.
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12% FYC is going to pretty much put you on par with the other players; UnitedHealthOne, Humana, Cigna, Assurant, etc...

That's what I've gathered so far. What about 2YR and the tail? It seems that most are paying around 5% on 2YR... does that sound right?

Thanks for the info by the way.

 

[Crabcake Johnny]

Yes - most are paying 4% to 5%.

 

[ABarnes]

What about bonus programs? I've heard alot of different opinions on those. In your opinion do they help to drive business and attract attention from brokers, or is it more about having a good product and competitive base commission amounts?

 

[Crabcake Johnny]

It's both. Few agents are going to write for a carrier only for commissions - especially in this environment where most prospects are able to compare rates.

That said, bonuses not only help but mean a lot, especially due to comp reductions. For agents who write a lot of individual health, they count on bonuses to raise their income to a sustainable level.