GR 2011 Commission Going Live Today

[ABC]

With comps going to these levels I think a lot of agents selling of of web leads are going to have a hard time with ROI.

 

[Ann H]

Sounds like GR in Arizona is different than your states. I dislike them, too, mainly because of the nightmare underwriting, huge 2nd year rate increases, large numbers of declines, rate-ups and riders, and the fact that they've been in business in AZ 3 times in the 30 years I've done this, only to pull out of the state and then re-enter the market. You can't get me to sell that to my clients, even for 20% FYC and 5% renewal (which is what it has been here for the last few years for GR). Most other major carriers are 10% level here (like Cigna, Health Net, Blue Cross), except HumanaOne that has been 20% / 5%, and Aetna that has some weird decreasing schedule that I don't pay attention to anyway because I don't sell Aetna much.

But what sounds like it's different in AZ than what you've been saying is that most of you have been saying GR isn't even competitive. Wow! Here in AZ we fight the problem of GR (UHC One) being by far the low cost leader. Usually, when you explain to clients that underwriting will take 30-60 days, then the premium will be rated up or the contract ridered, blah, blah, blah, the client accepts the advice and selects another carrier. Or else, they have to learn the hard way. But nonetheless, we have to go through this with every single sale, because GR (UHC One) quotes premiums that are a minimum of 15% cheaper than any other competitor and sometimes more (young ages and non-smokers).

 

[669comche]

Also, whats going to be the commission levels for agents that are thru a MGA/IMO?

Is this new production based model going to be applied there too?

And also, do all agents start at 0 for the year or are they going to use historical info to determine your new level?

 

[Crabcake Johnny]

GR's current model is agents get more comp going through a MGA. If you contract directly you start at 15% and climb to 20% max.

If you actually write business, any MGA starts you out at 20% and you can bid up from there.

I don't think GR's ready to implode their distribution channels by offering direct agents more comp.

 

[669comche]

So really this only concerns agents appointed directly?

I don't even sell them, but just curious.

You think agent comp thru the MGA/IMA will be significantly higher than this new revised direct levels?

 

[Crabcake Johnny]

I don't think GR is going to offer direct agents a better deal. If they do, it'll be a total cluster as agents through MGAs try to blow out for higher comp and deal with releases.

 

[somarco]

I am currently paid 24%, direct. The pay cut is going to hurt but only if I place business with them. The way they have been for the last couple of years they are almost a carrier of last resort, and mostly because of their ability to rider conditions.

Humana is having a meeting here in a couple of weeks. May hear something from them at that time.

AFAIK, the entire MLR issue is still up in the air and HHS has not yet issued their decree.

 

[ins.dave]

I am currently paid 24%, direct. The pay cut is going to hurt but only if I place business with them. The way they have been for the last couple of years they are almost a carrier of last resort, and mostly because of their ability to rider conditions.

Humana is having a meeting here in a couple of weeks. May hear something from them at that time.

AFAIK, the entire MLR issue is still up in the air and HHS has not yet issued their decree.

O.K. but how much G.R. do you move in GA?
Not much i don't think?

 

[YouGotMyMoney]

O.K. but how much G.R. do you move in GA?
Not much i don't think?

He'd get the same amount even if he lived in FL or TX.

 

[ins.dave]

He'd get the same amount even if he lived in FL or TX.

I'm saying they are not competitive in GA.