The First Victims of Health Care Reform
Will Insurance Agents Be First Victims of Health Reform? - TIME
Will Insurance Agents Be First Victims of Health Reform? - TIME
The First Victims of Health Care Reform
- Thread starter Mark
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- health care reform
- 3,863
The first victims of health care reform are children.
- 14,809
We're already victims -as in past tense.
Question: If you write a GR deal today how much will your first year commission be?
Answer: You don't know.
Everyone's minds are still operating on 20% first year comp, so a $3,000 deal earns $600 in commission. But write a deal with an effective date of September 1st and suppose comp drops to 8% come January. You didn't quite earn $600. You'll earn $200 (Sept - Dec at 20%) + $160 (Jan - Sept at 8%) for a total of $360. The liability gets worse the closer we get to Jan 2011 since 20% is only guaranteed through December.
So agents who are spending $100 on leads thinking they're returning $600 could possibly already be in a world of hurt.
Even as-earned, you're counting on possibly $600 comp per deal average X 3 deals a week = $1,800 a week and everything is fine. You might actually realize $300 per deal X 3 = $900 and after lead costs and taxes you can't make the mortgage payment.
Now is the time to start either cross selling or looking at other lines.
Question: If you write a GR deal today how much will your first year commission be?
Answer: You don't know.
Everyone's minds are still operating on 20% first year comp, so a $3,000 deal earns $600 in commission. But write a deal with an effective date of September 1st and suppose comp drops to 8% come January. You didn't quite earn $600. You'll earn $200 (Sept - Dec at 20%) + $160 (Jan - Sept at 8%) for a total of $360. The liability gets worse the closer we get to Jan 2011 since 20% is only guaranteed through December.
So agents who are spending $100 on leads thinking they're returning $600 could possibly already be in a world of hurt.
Even as-earned, you're counting on possibly $600 comp per deal average X 3 deals a week = $1,800 a week and everything is fine. You might actually realize $300 per deal X 3 = $900 and after lead costs and taxes you can't make the mortgage payment.
Now is the time to start either cross selling or looking at other lines.
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- 901
Where are the winners? Are there any??
There are some indirect beneficiaries, such as software makers who produce cost-saving software solutions, etc., but otherwise, where are the winners who directly contribute to the industry known as healthcare?
There are some indirect beneficiaries, such as software makers who produce cost-saving software solutions, etc., but otherwise, where are the winners who directly contribute to the industry known as healthcare?
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- #5
- 1,926
Learn to cross sell. Most of the folks you talk with don't have competitive term rates, most don't have individual disability and most of their parents don't have LTC. Servicing their health insurance needs, for me, is a great way to transition to other products.
- 415
Volume is going to be the name of the game.........
- 14,809
There's no workable model for volume if comp drops to say, 5% unless it's GI with a mandate and the subsidy. Go multi-line.
- 1,459
That business is out there if you just ASK! I have even been able to bridge the gap as employee benefits rep to helping business owners with their retirement planning just by asking to show them the other types of problems I solve for people.
- 415
There is always going to be a model.
Just not one that the individual broker/agent can probably cope with.......only the bigger agencies with bigger budgets will be able to handle that.
Operating a multi-line agency is not as easy as it sounds............
Most group health agents lived on 5% commission and they made good money..........only because of the number of lives they were insuring.
How would that be any different?
Just not one that the individual broker/agent can probably cope with.......only the bigger agencies with bigger budgets will be able to handle that.
Operating a multi-line agency is not as easy as it sounds............
Most group health agents lived on 5% commission and they made good money..........only because of the number of lives they were insuring.
How would that be any different?
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