by jedcowan » Mon Nov 11, 2013 06:45 pm
The whole Health Reform thing has opened up some interesting doors for our brokerage. We are having multiple agents wanting to partner with us. These are agents that write a few health policies a year on the side. They would refer groups to us and we would write and services the policy. What is a fair split with commissions? We are proposing 50/50. Thoughts?
Posted: Tue Nov 12, 2013 04:35 am Post Subject:
What is a fair split with commissions? We are proposing 50/50.
Given the sorry state of commissions for health insurance, 50-50 may be overly generous if all they are doing is supplying you with leads and sticking you with the servicing of the clients.For example, here in CA, large group plans are now down to about $2 per enrollee per month. So if the company has 150 employees, paying a total of $600 to $800 per month for employee + 1 dependent/spouse, the $600 commission per month is a trickle compared to what it was 3-4 years ago. And it's a joke compared to the $80,000 to $120,000 per month the insurer is collecting in premiums. Why would I even want to split 10% of that?
Individual plans are paying about 4% of first year premium and 2% in renewals. Or worse. It's almost not worth the effort.
On top of that, if you are placing insurance through a state of federal exchange, both you and the other agents must be "certified" with that organization in order to receive/split commissions.
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