Future of Small Group Benefit Brokers/Advisors

[rcduggan]

We have found partnering with a GA that has existing partnerships is best.... even when having to split commissions. The client has a very smooth transition.

partner with a GA is good. splitting your comp with a GA is ridiculous. out of curiosity, how much of the comp are you splitting?

 

[junkman]

Splitting usual means you've stumbled onto a prospect and don't have the knowledge or resources to deal with it - basically out of your zone of competence otherwise, agents would be bringing you business to split.

 

[rcduggan]

Splitting usual means you've stumbled onto a prospect and don't have the knowledge or resources to deal with it - basically out of your zone of competence otherwise, agents would be bringing you business to split.

well right.... but this is a GA not another agent. a GA's already receives a point or two aside from the regular comp. i'm genuinely curious how much he's given up to this GA.

 

[leevena]

To stay competitive group health brokers need to offer the entire package, support - compliance etc. Thoughts?!?!

Could you be a little more specific on what you mean by entire package?

 

[junkman]

Every state is different. In TN, agents go direct to the carriers. There are some self-funded plans with trust products sold through various flavors of wholesalers. Any agent can go to any source for product and we generally shop the entire market so that another agent doesn't show up with something we don't have. The only exception is when we know that the employer data isn't all over the street. Then we are more selective in sending RFPs.

We would never go to another licensed anyone that isn't the source of product. Some agencies may place more business with a carrier and get over rides. Some have worked with a TPA and started their own trust product. Be sure you're at the source of the product and not dealing with an intermediary.

Turn your client over to anyone and they will try to take the client - if they can. Only give data to those from whom you want the quote. Even group reps who you've done business with for years will walk with their x-date list and call on your clients. That has been the story at least since the mid 80s.

 

[scagnt83]

If a group is ready to detach from a PEO how difficult is it? They are a very motivated large group.

Depends on the PEO. But often it is a huge PIA. Especially if their 401k is wrapped up in the PEO.

 

[scagnt83]

Alot of small benefit brokers, mostly in ny but all over the country have been transitioning their books into PEO's.

PEOs can be great for small blue collar businesses. Almost every white collar firm Ive ever encountered in a PEO regretted the move big time... and the only reason they hadn't moved out yet was because of the huge amount of time involved to do so. (and they are often paying WC premiums double what they could be)

No two businesses are alike. To think that a single lineup of products is a proper fit for all businesses is not an idea based in reality.

 

[Mike Siegal]

...
Hang in there, 2020 we will see all the grandmother groups plans terminate. This will create huge opportunity for brokers that are willling to work.

May i ask 'what group plan' will demise in 2020?

Thanks!

 

[rcduggan]

May i ask 'what group plan' will demise in 2020?

Thanks!

he said it, "grandmothered group plans".

 

[Mike Siegal]

he said it, "grandmothered group plans".

I'm a little slow...and SLANG is a course i failed. Can you explain it to me like i'm 5?

(you mean a large number of group plans will expire...or one particular company?) The way he wrote it, it sounded like one particular Plan (would expire).