HCO- What's the Catch?

[new2insurance2009]

Hi all

I am a new to this, so go easy out there. I have been in sales for the last 16 years, and being unrelated to the insurance biz I am a bit green. First before I pose my simple question, I would like to say that I am glad to have found this forum, as I think there is some great valuable information here, though perhaps some can be taken with a grain of salt. I'm exploring all options on how to begin my new career. Not sure I prefer the captive side-leaning more towards independent status.

Recently, I spoke with HCO in exploring the option of joining them. Thus far in my search appear to offer terrific support re: product training, Marketing Support (Lead Credits and FREE Website), Underwriting Support, & Direct contracts.

My question: With everything that they either provide or assist with- what do they (HCO) get out of the deal? They say there are no fees required by the independent agent.

I welcome any suggestions, feedback, and anyone currently with HCO

Thank you in advance

 

[Norwayguy]

They get overides on your commissions...nothing wrong with that but that is what they get out of the deal

 

[moonlightandmargaritas]

If they, for example, have a Key Broker contract with Golden Rule, the compensation is in the 29-31% range.

They pay you 20%, and keep the difference. Very profitable, huh?

 

[new2insurance2009]

Thanks- had a feeling that was it-Just did not know if something else was up.

 

[souldeux]

They also shave 1% off of my Humana renewals, the bastids.

 

[myinsurebiz]

A contract ain't nothing but paper.

100% / 20% of nothing is nothing.

The key to contracts and commissions is being able to advance up the chain with decent production AND being able to realize measurable results by associating yourself with your group in exchange for such contracts.

Agents always talk the talk - but in my world - they must walk the walk FIRST and then they get rewarded.

Tom

 

[moonlightandmargaritas]

I welcome any suggestions, feedback

There is one other factor that is germane to the discussion.

If your comp is coming directly from the carrier, that's a pretty secure arrangement. I've never had comp be even one day late from the major health carriers (GR, Humana, et. al.). They will on occasion screw up the comp - but it's never late.

I have had comp delays with smaller carriers.

On the other hand, the landscape is littered with examples and stories of IMOs/FMOs/agencies, etc. delaying payment, or in the extreme, stiffing agents on comp alltogether...

Any time your comp is coming from an intermediary of any kind - you're taking more risk that you'll actually get paid.
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A contract ain't nothing but paper.

Man, that is prophetic.