The Pain of Comp Cut!

[ABC]

Going into the new year we will all feel the pain of the individual health commission cuts. I have felt it already.

It will be interesting to see how many brokers are left in 2012 pushing individual health insurance.

I think there is going to be a huge drop off.


thoughts?

 

[Guest]

We are struggling through AEP because of this very thing. Last year we had 5, down to 3. The good news AEP has been good, bad news we are killing ourselves because we can't afford to have as many agents to take care of other things during it.

 

[CHUMPS FROM OXFORD]

As I have said...GET OUT OF THE INDY HEALTH BUSINESS NOW!!!

Many will leave and some will foolishly wait too long.

No, I'm not leaving because I am a fool.

 

[DS4]

It will be interesting to see how many brokers are left in 2012....
I think there is going to be a huge drop off.

I can only hope......

 

[Dave020]

I made this point recently in another thread. The chickens will really start coming home to roost in a few months as the 2010 plans sold at the FYC boosted rates are going to drop down to the 4 or 5% FYP renewals. Peoples checks are going to start going down yet premium submitted will be going up.

 

[Ann H]

I see it hitting my bottom line already, in IFP and group. Humana just sent a new commission schedule on group that looks lower than last year, but I haven't had time to really look at it... too busy. The IFP business is up in volume, down in commission percentage, which so far has been a wash. But now the overall reduction is showing.

 

[Crabcake Johnny]

I got Aetna's in the mail yesterday:

Standard: 0-9 - 4%
Executive: 10-19 - 8%
President: 20-34 - 10%
Chairman: 35+ - 12%

Q1 enrolled applications bonus

5 - $750
10 - $3,000
20 - $4,500
30 - $6,000
40 - $9,000
50 - $15,000

 

[YouGotMyMoney]

if you write 50 or more apps, it effectively gives u 25% commission.

Still they can burn in hell. Prob the 9th circle.

 

[Crabcake Johnny]

50 apps within 3 months is 4.1 apps per week - that's approved and issued.

 

[djs]

I've said it before and I'll repeat it again......

The days of a truly independent agent working by himself as a health agent are virtually over moving forward. Carriers spend to much money on this model.

To make money, you need volume of production. To survive, agents will have to band together under a single agency to pool production numbers to get the bonuses. There are many benefits to this anyway, except for the loss of a bit of freedom (which is the reason many are actually in the health insurance business).

As the model rolls out a bit more, I think you are likely to see more P&C agents get more active in the health business (as dedicated health agents depart). P&C agents are setup for higher volume and to date, hate the underwriting portion of health since they are not in control. If GI though, then heck, it's just paperwork on your book. No big deal.

Dan