It May Be a New Reality... Just My 2 Cents.

[G.Gordon]

I've noticed that the companies with the lowest commission contracts are also the ones that have the lowest rates increase, keep clients longer, and therefore actually make us more money.

Now, keep in mind that most of my observation is in the state of Missouri where we have the cursed GI law.

AnTex... had under 5%/year for four years then they lost their mind with a 30% increase. They paid around 11%.
Golden Rule.. never has gone over double digits in the past five years. Even though 2009 was the last year they sold medsupps that "closed book" of business has not taken a rate increase since. They paid 10%. I've not moved a GR client ever... they are way under market price currently.

I don't see how companies can keep paying 20-30% of premiums to the agent and stay in the market. It don't make sense to this country boy. Why wouldn't they do everything they can to eliminate that extreme expense... think about it. Now making a solid 10% for almost a decade... ain't a bad agreement IMO. Yep, it'll take more clients to make the same level of income, but how much work is a supp client anyway.

So here's my assumption and plan. I'm planning on making 10% on supps.

 

[Chazm]

I get paid the least from UHC med supps and since I've been in the biz (2.5 years) they've only had 3% increases.

I thought 10% commission was pretty darn low though. Aren't premiums in your area low too?

 

[G.Gordon]

Nope... MO is the highest of the five states I have supp clients in. Like I said.. that cursed GI law.