Kicked to the Curb?

[Guest]

Tell us something we don't already know:

Obamacare Mandate Kicking Insurance Agents To The Curb - Forbes

 

[xrac]

And Americans are deprived of the services of experienced knowledgeable agents able to assist them with finding the best coverage for their situation.

 

[Biggin]

And Americans are deprived of the services of experienced knowledgeable agents able to assist them with finding the best coverage for their situation.

But you have to understand that we (agents) are in the private sector and therefore are evil. How anyone that is in business for themselves can vote this moron is beyond my comprehension.

 

[Crabcake Johnny]

I had 8 good friends who only sold individual health for a living - no ancillary, no other lines. Post reform there's one left standing. The other 7 either moved on to other lines or out of the biz.

 

[Guest]

I had 8 good friends who only sold individual health for a living - no ancillary, no other lines. Post reform there's one left standing. The other 7 either moved on to other lines or out of the biz.

And, as the article points out, they probably don't qualify for unemployment either.

 

[Crabcake Johnny]

Not as independent contractors.

 

[VolAgent]

So in 2008, 2.02% of premium went to commissions, versus 17.43% to staff compensation.

So what genius decided that commissions was where they were going to get to 80% MLR versus internal costs? Unless they were just under 80%, eliminating all commissions wasn't going to do much for them.

 

[Guest]

So in 2008, 2.02% of premium went to commissions, versus 17.43% to staff compensation.

So what genius decided that commissions was where they were going to get to 80% MLR versus internal costs? Unless they were just under 80%, eliminating all commissions wasn't going to do much for them.

From some of my experiences lately with some of the carriers, seems they have cut into that 17.43% staff comp also. Don't have solid data on this, it just seems cust service at several of the carriers has gone downhill, maybe because of layoffs? Of course, like agents, these are the people that the public deals with on a daily basis as well. Real smart.

 

[djs]

So in 2008, 2.02% of premium went to commissions, versus 17.43% to staff compensation.

So what genius decided that commissions was where they were going to get to 80% MLR versus internal costs? Unless they were just under 80%, eliminating all commissions wasn't going to do much for them.

Actually, the way this is worded in the article is strange and leads to the comparison you made, but it isn't what it says. What it actually says is that of administrative expenses, 17.43% is staff compensation. It doesn't say what administrative expenses currently are, but you can assume 20%. So staff is compensated 17.43% of 20% or, if I did my math correctly, 3.5% of premium.

The 2.02% for commission seems low to me, but I guess a lot of policies are house accounts with no agents already and therefore no commissions. I assume that this would be close to 5% if they looked at just the ones where there are agents paid a commission.

Dan

 

[VolAgent]

Actually, the way this is worded in the article is strange and leads to the comparison you made, but it isn't what it says. What it actually says is that of administrative expenses, 17.43% is staff compensation. It doesn't say what administrative expenses currently are, but you can assume 20%. So staff is compensated 17.43% of 20% or, if I did my math correctly, 3.5% of premium.

The 2.02% for commission seems low to me, but I guess a lot of policies are house accounts with no agents already and therefore no commissions. I assume that this would be close to 5% if they looked at just the ones where there are agents paid a commission.

Dan

Good point. So between the two we are at 5.52% of premium. I would assume people would be the biggest administrative expense, so where is the other 14.48% going? Or is this more selective reporting by Forbes?