Question Re: Groups Over 500

[Innovation]

Hi,

I am new to the forum and wish to know if this is the correct place for agents in the 500+++ market.

Are there other web sites for large group agents?

Thanks...

 

[ABC]

There are very few agents participating in online forums that are writing 500 life groups.

Most forums are geared to the independent producer who is writing more individual lines.

There are only a handful of producers on here that are actively writing group.

 

[Soaringagent]

What is the commission like on a 500 member group?

 

[Franz Kafka]

What is the commission like on a 500 member group?

I think you make a deal.

 

[ABC]

What is the commission like on a 500 member group?

Around $70,000-$150,000

 

[djs]

500 eligible employees (plus spouses and children)
or
500 total lives?

Not that I've ever written one, but my guess is that it is no where near what you might think.

$150K for 500 would be $25 per month per person. This seems high to me. I know I stayed away from large group because everything I saw for commissions was lower (significantly lower) than that, then they can negotiate it as well.

Dan

 

[leevena]

I have been in that market for years and agree with ABC that there are only a few benefits people here and even fewer that work the large market. Most of the business in that market is with the medium (regional) to large (national)houses.

Not knowing what in particular you are looking for, you may want to try some of the groups in linkden. You will need to get past the advertising and BS that some people post, but it might be worth it. There is a group(s) for self-insurance that should fit the size you are looking for.

Also, google "self-insurance blogs" or some variation and you will find many more.

One thing you may want to try is forming your own group. Years ago I ran into a group of 15 or so producers who were spread around the country and would meet once a month on the phone and then online to discuss issues. I seem to remember that this lasted 10+ years.

Good luck.
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What is the commission like on a 500 member group?

Good rule of thumb is 2% of premium for fully insured. So assuming a $600 per month per subscriber, a 500 life group would generate about $3.5 million of premium, and about $70k of commission.

Bear in mind though, with that significant amount of money staring the employer in the face, you need to justify it.

 

[TwiLight]

What is the commission like on a 500 member group?

2% of premium is average for a group this size. Any more and the justification is difficult with the client. All Large group cases are negotiable and your insurance carrier is also going to ask why along with your client if you ask for too much..

It is also full disclosure to the client, so you will need to justify more. We work with most of the top agency/regional shops in the nation with our affiliated payroll service and assist them in selling large group by adjusting the HR needs and online services needed for a group this size.

It is much easier to charge extra using a HR/Payroll service provider and pay commission to the Agent based on those services which are integrated with the Large group case. It is very hard to separate or change companies or agents because of the integration of the two systems with Benefits. Persistence ROCKS....