PEO Broker Looking for Producers

[ABC]

I go up against PEO's every year.

PEO's admin fees are very high. I took a 14 life group that was paying $15,000+ in Admin fees. On the health insurance side I saved $20,000. So combined we had over $35,000 in savings on a 14 life group.

The other issue on the health insurance side is customer service. The PEO is not capable to handle customer service. Also we have seen the PEO's health blocks become toxic with high claims which has increase rates higher than max loaded in the private sector.

Here is the other issue. Why would a broker work with your agency? If we did want to sell the PEO product why would we not go direct?

 

[Wayne711]

We stay away from quoting on Group Health. The only ways I've seen PEO's be competitive there is through adverse selection, which leads to their group becoming toxic. Eventually.


Our brokerage prefers to be the first point of contact for customer service. We know how to get things done when dealing with PEOs, who strive harder to please us because they know that if our brokerage isn't satisfied with them, we have other PEOs that we can refer the business to. We're the go-between, we don't expect a big PEO to be top-notch in customer service.

Our day-to-day isn't so different. I'm the middle man between PEO-Client, like an Agent is for Carrier-Client.


Why work with us? Well, you could go direct. Then hope you're dealing with a financially sound, stable PEO. Or work with PEO experts, who already have strong relationships with qualified PEOs. Plus, if somebody is calling your Clients to tell them about a unique new way to look at WC insurance, would you rather it be me? Or you?

 

[ABC]

Wayne,

Your sales pitch of customer service makes it sound like PEO are not the most responsible when it comes to customer service.

I personally would rather go direct that use a in between.

We stay away from quoting on Group Health. The only ways I've seen PEO's be competitive there is through adverse selection, which leads to their group becoming toxic. Eventually.


Our brokerage prefers to be the first point of contact for customer service. We know how to get things done when dealing with PEOs, who strive harder to please us because they know that if our brokerage isn't satisfied with them, we have other PEOs that we can refer the business to. We're the go-between, we don't expect a big PEO to be top-notch in customer service.

Our day-to-day isn't so different. I'm the middle man between PEO-Client, like an Agent is for Carrier-Client.


Why work with us? Well, you could go direct. Then hope you're dealing with a financially sound, stable PEO. Or work with PEO experts, who already have strong relationships with qualified PEOs. Plus, if somebody is calling your Clients to tell them about a unique new way to look at WC insurance, would you rather it be me? Or you?

 

[Wayne711]

....not exactly my sales pitch, and I merely meant we prefer to be the first point of contact if our prospect wants someone local to call. (our PEOs are in many states) Most clients simply call the PEO direct for customer service, and have been quite happy with service. So much so that our brokerage doesn't hear from them often, if at all.

This is a result of experience in recognizing solid PEOs, and maintaining long-standing relationships with them. Rather than scrambling to find a PEO when you need to save a customer.


Also, due to the fact that our brokerage works with multiple PEOs, we promote competition between them for the best rates and service.

 

[Gators1974]

I am a business development executive with PEO company. I am looking to network with insurance agents and PEO brokers regarding PEO referrals. We are very broker friendly and we pay generous broker fees. I can also do stand alone policy so you the agent can write the insurance and get paid a brokers fee for the referral. We can write business in any state. Please email me for more information.

Please email me RFP

 

[Sales71]

A good plastic surgery can get u about 30 added years to ur age. That would BOOM get u to 58 at no time.

 

[Jim Jenkins]

PEO's print money

 

[newera]

I'm currently with a PEO Brokerage which has over 30 years experience in the business of marketing and outside sales for multiple PEO's, nationwide. We specialize in hard to place industries like Roofing, Trucking, Construction, etc., and about 95% of our business has come from relationships we have with Independent Insurance Agents, who refer business to us.

I've been with the company for almost 3 years now, and I haven't had much luck cultivating relationships with Independent Insurance Agents, for some reason. Could be bad luck, or the fact that at my age (28 now), I still have a bit of the baby-face. Which kills my credibility on sight, when I've only had meetings with older (50yrs.+) Agents, usually the owner of the Agency. I still cold-call business owners (10-99 employees), and I've had some success there, but I feel like building a network of Agents is the best way to excel in this business. Agents usually have an earned trust and an influence in their communities, and a lot of times that speaks louder than lower rates. Also, most business owners I meet with do their payroll in-house, and would be less reluctant to outsource it if it's recommended by their Insurance Agent.


Now I'm not necessarily posting here to try to find Agents to partner with, although that would be ideal. If nothing else, I'd like to get an idea of the general consensus on PEO's, from and Insurance Agent perspective.


We offer Agents another option for their Clients and Prospects who may be facing challenges in the Worker's Comp. market. By pooling their employees with the thousands already on the PEO's payroll, they can take advantage of the economies of scale to lower their Work. Comp. premiums. We also offer Pay-Go WC, eliminating big down payments, and because the PEO administers the payroll, there are no year-end audits. Add to to that the administration of all Employee-related, non-revenue producing, back-office tasks and paperwork, and it really makes sense for small businesses.


We are paid commissions directly from the PEO, which we split with our Agents. These are usually higher than what Agents can get in the voluntary market, because we're paid a percentage of payroll, not premium. The commissions are residual, and paid monthly. It's really a win/win situation, when you can offer your Clients lower WC premiums, preserved cash-flow with Pay-Go WC, and a full service payroll / HR / Risk Management provider, while making better commissions for your Agency for as long as they are a Client. Not to mention it helps Agents retain their Clients when said Clients are also doing all internal administration through the PEO, so it keeps your competition at bay. (when all they can offer is lower rates, at best.)

We're a small broker, not a big PEO. We like to build personal relationships with all of our customers, and we like to meet all Insurance Agent-referrals in person whenever possible. We cultivate that relationship, eliminating this "PEO means no customer service!" mentality.


So my question is, what gives? Why is it so hard to find Agents that want to work with me?


(sorry for the wall of text)

Please contact me as I represent a very large PEO and would like to discuss our commissions and product.