Group Health Forum

johnrocks · 03-30-2007, 04:31 PM

I know I've seen it on here before and i apologize for my redunacey but isn't there a forum for group health that this forum may be affiliated with?If so I would really like to check it out.

***Melmunch3*** · 03-30-2007, 04:34 PM

There are some threads here about group health insurance, but no seperate forum.

healthagent · 03-30-2007, 04:38 PM

Those agents writing group don't have time to post.

salpro22 · 03-30-2007, 04:41 PM

What happened to the thread where John, Sam and I were talking about group versus individual commissions and the pros/cons?

johnrocks · 03-30-2007, 04:45 PM

Originally Posted by salpro22

What happened to the thread where John, Sam and I were talking about group versus individual commissions and the pros/cons?

That's what I was wondering, just trying to be more covert

lol

healthagent · 03-30-2007, 04:48 PM

In many ways group is easier than individual. Obviously in MD there's no underwriting. What you're looking for is poorly serviced accounts where the owner is unhappy with their current broker. Then you have a deal. My good friend is doing extremely well in the group market.

The problem is you have to service the account. If you don't, then you turn into that "bad" broker and you can lose a huge account. My buddy Bruce tells me stories of group brokers who can lose a a third of their monthy income by either losing a large account or a few small ones.

Interesting to note that the owner of a dealship I worked for blew out from his broker because he didn't send them a Christmas present. I was there. The conversation was the owner asking the ass't "so what did we get from *****?" She said "nothing." He came back with "And how much do we pay on our premiums? Get a new broker."

johnrocks · 03-30-2007, 04:48 PM

Seriously though I thought that I had seen Sam mention a Group Forum 101 or something. My memory is the secord shortest thing I have.

***Melmunch3*** · 03-30-2007, 05:10 PM

I am not sure what happened to it. I was moving the posts to another thread and I must have deleted them accidentally.

It is true that you have to send Christmas gifts but when an account pays you 10 grand every year, it is the least you can do.

CHUMPS FROM OXFORD · 03-31-2007, 08:03 PM

I don't like spending time on group business, but I will quote it, if the opportunity is there.

If they are interested, I have a pair of associates who will write and service the business. Of course, I only get approximately 35% of the commissh, which amounts to about 2.2%.

senior-advisor-indiana · 03-31-2007, 08:26 PM

How much commission can you make off of a group of like 30 people?

johnrocks · 03-31-2007, 08:35 PM

30 employees @ 500 per month = $15000

$15000 x 10% = $1500

Is that about right? $1500 per month!!

somarco · 03-31-2007, 08:42 PM

Who pays 10% on a 30 man group? No one I know. You might get 5% if you are lucky. Even less if there are underwriting loads. The commission grades down as the premium increases.

senior-advisor-indiana · 03-31-2007, 08:45 PM

$750 a month is awesome for 1 case! Is that what you get in the renewal years also?

salpro22 · 03-31-2007, 08:46 PM

I think it is going to be really interesting in the next few years to see where the group and individual market goes in our respective states.

senior-advisor-indiana · 03-31-2007, 08:48 PM

Is john alden a good co. for group insurance?

johnrocks · 03-31-2007, 09:04 PM

Originally Posted by somarco

Who pays 10% on a 30 man group? No one I know. You might get 5% if you are lucky. Even less if there are underwriting loads. The commission grades down as the premium increases.

If you recall that's what I was trying to ask Sam the other day when our threads were "vaporized"+

I don't know I was asking but I know here in La. BCBS had a 10% fee a couple years back (that's what I was going by" and that Nippon comm. schedule I "think" is 9% but I will have to check. Hell I've been wrong more times than I've beeb right in my life

***Melmunch3*** · 03-31-2007, 09:32 PM

From what I can see, most group insurance commissions are slowly moving away from a % and to a per head per month fee. This is especially important since the insurance companies want brokers to sell HRA and HSA plans, and the premiums are much lower on those plans. I imagine that at some point, individual commissions will follow suit.

In MD, Kaiser United Healthcare and Carefirst (Blue Cross) already have a per head fee, and Aetna is still 5% for any under 50 enrollee groups. We have groups in 12 states and the highest commission on our groups is in California, where it can be up to 8%. There are always a few states and companies that will comp higher for specific business that they like, for ex, the 8-15 life demographic seems to be very attractive to insurance companies these days.

I have one group of 35 employees that is a tech company, with a young crowd, and the monthly commission is $680. I have a school with 35 enrolled with a much higher average age, and richer benefits, and the monthly commission is $1,204, which is almost double. Not all groups are equal.

More importantly though, are the bonuses. Bonus threshold is usually 2-3 million in annual premium, and bonuses can be between 20%-100% of the total ANNUAL commission.

johnrocks · 03-31-2007, 10:24 PM

Sam, it seems then that groups with a higher age avg. would be what to mkt. Is there a way to find this info?

Seems like there may be more interest in group than you thought lol maybe you could just turn this into a bracket like health or life and the others. What say you.

***Melmunch3*** · 03-31-2007, 10:41 PM

Well, group really falls right into the health forum, but we will be looking at adding a few new forums when I get back.

Group has some very big positives, and some very big negatives.

Positives

1. Simple numbers....one group of 10 means you get commission on 10 people. Even at 5%, that is much more than you can make on one individual sale.

2.Sell one group of 10 and you have 10 leads for life/disablity etc... You have their info such as health, DOB, family size etc... You couldn't find a better qualified lead anywhere, and you have an excuse to contact each one at least twice a year.

3. Renewal commission is the same as first year. This is the single biggest advantage. If you have a decent book of groups, then you do not need to continually hustle new business in order to keep your income at the same level.

4. You are usually dealing with a professional infrastructure. When you call a dentists office and ask if you can "throw your hat in the ring" (Hat tip to Bob!) when they renew, you do not get a lot of hang ups. People are more respectful, and that can help your morale.

Disadvantages

1. You are less diversified. You lose one nice sized group, and you can take a real hit.

2. You have more enrollees, which means that there are more clients to watch out for, and more potential claims and service pitfalls.

3. It takes a long time to get paid and there are no advances. This is the biggest drawback, and the reason why new agents cannot do well only selling group. It can take one to two months from the start date, to close a new client, and then it can be a further two months before you get paid, and when you finally do, it is on an as earned basis.

This is by no means an all inclusive list, but it is a good start.

senior-advisor-indiana · 04-01-2007, 12:55 AM

I will be looking for a group to write. Those are some really nice commissions. Man if I could get even 5 groups of thirty I would be in heaven. Group of 30 =$800x5= 4,000 per month plus my med supp and annuities WOW!!!