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At what point in group size can you take a commission reduction to offset the rates. I know my buddy in MD said that with larger groups you can actually negotiate a lower percentage of commission. Sam?
Group Health Producers
- Thread starter dandan
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- group health key man life
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lowering commission will depend on state regs. above 50 in wa, you cut your own deal. Before you decide to cut commissions though, think through what you are going to provide. Are you going to run (and pay for location) employee meetings to go over plan? Are employees all housed in one location, or multiple, or mulitple states? Are you willing to hop on a plane to run a meeting? What level of service are you willing to provide?
- Staff
- #43
- Staff
- #44
- 1,599
With most carriers that I deal with, over 100 fully insured you can pick your own commission but I generally see it as being between 3 and 5%. Whatever it is, it is always disclosed on the 5500 from the carriers. Of course, self-funded is a whole other ballgame, commission is very low and you have to make up some skin from the TPA or reinsurer. Bob could enlighten us more on that.
I see a lot of variation based on location. FL, NJ, and VA see a lot of 5% groups, whereas CO, MD and some others are usually closer to 3%. Bear in mind that the level of service and add ons that you need to promise to groups that size does not come easy.
The 100+ market is very competitive, We offer an HR web portal, a model employee handbook, COBRA administration, claims resolution advocates, semi-annual utilization and trend analysis, bi-annual management review, strategic planning, access to an ERISA attorney, benchmarking surveys, dedicated CS reps and a dozen other extras. Why? Because we got beat out by competition that offered these types of things. even then, we still see new offerings all the time that we need to add if we want to stay competitive.
I see a lot of variation based on location. FL, NJ, and VA see a lot of 5% groups, whereas CO, MD and some others are usually closer to 3%. Bear in mind that the level of service and add ons that you need to promise to groups that size does not come easy.
The 100+ market is very competitive, We offer an HR web portal, a model employee handbook, COBRA administration, claims resolution advocates, semi-annual utilization and trend analysis, bi-annual management review, strategic planning, access to an ERISA attorney, benchmarking surveys, dedicated CS reps and a dozen other extras. Why? Because we got beat out by competition that offered these types of things. even then, we still see new offerings all the time that we need to add if we want to stay competitive.
It's those "extra touches" that will, more often than not, get you the business.
Any swinging dick can go in an razzle-dazzle them with proposals designed to save premium. But what happens after the sale is more important than what happens up until he inks an application.
There are a lot of creative things to do with cash flow funding and plan design, but making the employers job easier goes a long way.
Personally, I like to look at self funding a group of that size. You have a lot more flexibility on plan design and can bypass state mandates with an ERISA plan . . . something you cannot do with a fully insured plan.
I worked the 100+ market almost exclusively for 25 yrs before walking away. It is a tough market, particularly as you move above 300 or so. You really need to have your stuff together if you are going to work in that arena. Otherwise, the CFO or HR guy will eat your lunch, along with the incumbent agent.
Just curious Sam, which service do you use for the add-ons quoted above? Got a link?
As for comp, it will vary. If you can get much more than $15 PEPM without offering supp (AFLAC) products you are doing well. Even at $15 you better illustrate something to show you are worth it or you will be out on your ear in no time.
- Staff
- #47
- 1,599
Some of them are from Zywave. Check them out at Insurance technology, claim software for employee benefit and property and casualty insurance brokers
Their broker briefcase and Mywave elements are excellent products. I am just now starting to explore their HR Connect as well.
It is a bit pricey, but well worth the cost if you are targeting groups over 100
Their broker briefcase and Mywave elements are excellent products. I am just now starting to explore their HR Connect as well.
It is a bit pricey, but well worth the cost if you are targeting groups over 100
- 1,926
Listen to melmunch, end of discussion, you WON't get the business unless you know your stuff, and you don't. As Nicholson said" you can't handle the truth"
Sam -
I don't know what you consider pricey, since there do not appear to be any prices on that site.
Fringe Facts has been around for years. May not be as comprehensive as Zywave but something to evaluate.
Most of their stuff is (or was) employee communications. Year end statements showing the employee the value of the benefits provided by the employer. This is one area where employers fall short . . . failing to communicate to the employee about the Hidden Paycheck.
Hidden Paycheck is another online source for employee communications.
I don't know what you consider pricey, since there do not appear to be any prices on that site.
Fringe Facts has been around for years. May not be as comprehensive as Zywave but something to evaluate.
Most of their stuff is (or was) employee communications. Year end statements showing the employee the value of the benefits provided by the employer. This is one area where employers fall short . . . failing to communicate to the employee about the Hidden Paycheck.
Hidden Paycheck is another online source for employee communications.
- Staff
- #50
- 1,599
Zywave charges 18k a year plus 8.5k start-up and training cost. Of course, one client can more than pay for it, and they have. The bulk of the value is in the Mywave Elements HR portal. It is a very slick and well designed portal that gives state and federal HR documents library, legislative briefs and bulletins, a huge HR forum, and the ability to post documents related to their plans or other hot button issues.
I will take a look at fringe facts.
I will take a look at fringe facts.
