Navigator / Agent / Commission

[RayNY]

Hate to be doom and gloom, but you guys are lucky and have it easy. New York has always been ahead of the curve as far as insurance regulation is concerned, and our commissions are a joke.

We have the highest premium, some of the highest costs of living, and the lowest comp in the nation. We're the test bed for what they can get away with.

No one is doing per-person, it's per-contract. It's not $15, it's $5 or $10 at best, no signing bonus, maybe a flat-fee one time production bonus (starts at $25/contract, barely 5% of one month's premium, and only if you move 25 cases per month or better). The carriers that still give a percentage are giving 2-3%, 4% at best, and have no qualms about changing it to 0% on a whim to force policy movement to different products when their experience isn't great. Not on anniversary, renewal, or when your contract renews. Tomorrow, on all product, because they can.

I won't even talk about how GA's are being treated. Moral of the story is, carriers just plain aren't paying anymore except in special cases.

Part of it may be that our MLR is 2% higher than everyone else and that cut was made to producers pockets. I'd wager it's just where the market is heading, and PPACA accelerated it for the rest of the nation.

Carriers know, for sure, brokers will work for peanuts. We set the precedent, sorry =(

 

[FLM2]

Hate to be doom and gloom, but you guys are lucky and have it easy. New York has always been ahead of the curve as far as insurance regulation is concerned, and our commissions are a joke.

We have the highest premium, some of the highest costs of living, and the lowest comp in the nation. We're the test bed for what they can get away with.

No one is doing per-person, it's per-contract. It's not $15, it's $5 or $10 at best, no signing bonus, maybe a flat-fee one time production bonus (starts at $25/contract, barely 5% of one month's premium, and only if you move 25 cases per month or better). The carriers that still give a percentage are giving 2-3%, 4% at best, and have no qualms about changing it to 0% on a whim to force policy movement to different products when their experience isn't great. Not on anniversary, renewal, or when your contract renews. Tomorrow, on all product, because they can.

I won't even talk about how GA's are being treated. Moral of the story is, carriers just plain aren't paying anymore except in special cases.

Part of it may be that our MLR is 2% higher than everyone else and that cut was made to producers pockets. I'd wager it's just where the market is heading, and PPACA accelerated it for the rest of the nation.

Carriers know, for sure, brokers will work for peanuts. We set the precedent, sorry =(

If it's so bad, Ray, why are you even in the health insurance business?

I wouldn't work for that level of compensation and I'm sure most of the other experienced agents wouldn't either.

 

[RayNY]

I'm not, and many, many brokers are not anymore either. I feel like I get this a lot on this forum.

Most brokers just moved their blocks to carriers that had reasonable comp. When they cut it, the block moved again. Most of the people still in the game have had their income halved or quartered in the past 10 years, even though premiums have doubled.

 

[FLM2]

I'm not, and many, many brokers are not anymore either. I feel like I get this a lot on this forum.

Most brokers just moved their blocks to carriers that had reasonable comp. When they cut it, the block moved again. Most of the people still in the game have had their income halved or quartered in the past 10 years, even though premiums have doubled.

If you are out, why the need to be concerned?

When ACA was passed and compensation was halved, I started doing other things to replace my lost income, including Medicare.

Medicare comp is fine in NY, right? If I lived in NY (I grew up in NYC, spent over 30 years there) I would leave individual and group health to others and work in the Medicare market as a way to build a book of business and renewal income (which is the only reason to be on the health side anyway).

 

[Ann H]

So...... if carriers want agents to be out, then cut comp. But if carriers want agents to sell in the exchange or in the private market, they need to be fair about comp.

 

[HealthGuy]

Yes RayNY I wonder why you always seem so preoccupied with being such a killjoy around here LOL..what gives bro?

 

[RayNY]

Some carriers made it very clear they want brokers to sell for them. They clearly stated that they will pay comp, it's an acceptable rate, and they filed for that comp in their premium with DFS.

Other carriers think we're unnecessary and have done the complete opposite. Of course, brokers are not going to sell these products, they will rely on navigators/ipa's/exchanges/direct enrollment through their portal/web brokers.

Whether that is a viable tactic, only time will tell. It's a whole new market, a whole new opportunity. We'll have to see how it plays out. That said, I don't see any carriers raising their comp.

 

[Quotebroker]

Blue Shield of CA today says to expect IFP medical comp within the next 10 days. Small Group down slightly, starting 6.5 first year.

Specialty benefits - we got a raise on most products, from 7% to 10%