Other Lines Of Business

Oct 7, 2015

  1. nyc2phi
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    nyc2phi Guru

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    As my commercial book grows, the topic of health insurance is coming up more often. I don't do health and never have but I am licensed and I am usually referring them out to a friend.

    Does your P&C agency offer health to your clients? If this is a good idea, is there way to learn how to do it?

    It's not enough business to hire someone to specifically do it in here but just thought about considering it myself.
     
    nyc2phi, Oct 7, 2015
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  2. insurance1822
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    insurance1822 Guru

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    My initial response would be that stay a master of 1 thing instead of trying to do it all. But then again, some huge payroll companies have got huge by doing workers comp, health insurances & additional services. Many of the huge agencies also do it all. Maybe (just maybe..) it's an opportunity?

    The reason I say that is because there's plenty of commercial agents out there & maybe YOU'RE just somehow able to uncover this? Are all commercial producers being asked about health insurance? I don't know, but I doubt it. Maybe the way you conduct yourself (maybe without even knowing it..) is creating this potential?

    I say explore.
     
  3. Arnage150
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    Professional Group Plans Commercial Insurance Brokers | General Insurance Agent
    Get signed up with these guys if you want to try it. They are like a health wholesaler.

    I tried it a few years ago. To much aggravation. 10X the questions and 90% less commission. The only cases you make money on are the large groups. You lose money on anything less than 10 lives imo. Not sure how obamacare has effected it. I would focus your time elsewhere. Also note that the large health cases are usually large white collar businesses. Exactly the opposite of where you make money on the P&C side (large blue collar).
    There is money in life insurance tho.
     
  4. Indiana_Adam
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    Any time I cold call or sit down with a potential client, I get asked about health insurance. While 2 of the agents in the office do write some health, we primarily focus on P&C, life, and disability. I refer all health questions/opportunities out to 2 other agencies here in town that focus solely on that side. I can't nor do I have any desire to keep up with the health industry, so I would not be providing my clients with the best service possible. I refer it out and go knock on some more doors for P&C. Team up for some commission splits maybe with a healthy agency in town? Or bring on a health agent commission only and have that person start working your P&C book.
     
  5. dean8287
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    I get this question a lot as well. I have found the new compliance issues would be very hard to keep up with. I work with a local health only specialty firm. Basically I give them the name and they take it from there and pay me 20%. A lot of these firms are starting to get involved in the P & C so it is something to be aware of.
     
  6. thecommercialguy
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    I've met a few agencies that sell Health in partnership with another firm. I believe they just split commissions for the first year. It's a referral, but since the P&C is with that agent, the relationship still hinges on the state of the P&C being with that agent. The partnering Health broker doesn't have to prospect, but at the same runs risk of losing the client if the relationship with the P&C agent goes south.

    Hayato
    closingcommercial dot com
     
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