Newbie- Direct Appointments VS. GA

[Agent-California]

Hi-I'm new to the Ins industry but not to sales. I am focusing on Health Ins. as an independent agent. I am wondering if I can get some feedback from the experienced independent agents here regarding getting appointments with /contracting through a GA vs obtaining direct appointments.

With the GA I am considering, I would not be a captive agent. The GA is not local to me so I would not have their physical office to use. They offer product training, support and access to carriers. They seem legitimate, straight forward, responsive and helpful. From my research I would be accepting a lower commission % through the GA vs going direct to the carriers. Given my lack of experience I am thinking it seems like a fair trade. However if I can determine that the access to carriers is something that I could obtain on my own & also obtain the product training(information) and support through the carriers themselves. This could change my opinion.

So specifically my questions are:

In CA what if any difficulty might I have in getting appointed directly with any carriers given my inexperience or other factors?
Aetna
Blue Cross/Anthem
Blue Shield
Kaiser
Pacific Care
Assurant.
Health net
Any other major players I am missing?
Which if any would have production quotas?

2) Will the carriers typically be willing to assist me with questions I have? Do they assign an Account Executive to their agents to assist or is someone else available for help? Are they going to be upset to work with someone green or will they typically be patient and helpful?

3) Looking at the carrier websites it seems like most/all of the carriers provide a lot of info and training themselves. Shouldn't that be enough to get me going? Wouldn't the minimize if not replace the need for the GA's training / support

4) If I do go with a GA initially and than later try to go direct with a carrier. Will this have any adverse affect on me?
A) with any of the carriers?
B) to be able to go direct?
C) on the commission levels?
D) already placed business with the carrier?

5) Lastly any opinions/experiences with going direct vs. through a GA? What are the negatives and positives of each?

Any and all advice is welcomed.

Thank you for the help.

Agent_California

(I apologizes for the long post w/ many questions. Thought I would put it all out in one post rather than pepper the forum with several closely related posts.)

 

[YouGotMyMoney]

Do not take a lower commission through this G.A.

It is not a fair trade off.

You will be able to get street level commissions through many other CA General Agencies, that offer training and support.

And what kind of "training and support" would this agency be giving you?

 

[Crabcake Johnny]

Don't take lower comp and check out Health Choice One - Health Insurance, Medical Insurance, Life Insurance, Denver, Colorado

 

[Dave020]

Hi-I'm new to the Ins industry but not to sales. I am focusing on Health Ins. as an independent agent. I am wondering if I can get some feedback from the experienced independent agents here regarding getting appointments with /contracting through a GA vs obtaining direct appointments.

With the GA I am considering, I would not be a captive agent. The GA is not local to me so I would not have their physical office to use. They offer product training, support and access to carriers. They seem legitimate, straight forward, responsive and helpful. From my research I would be accepting a lower commission % through the GA vs going direct to the carriers. Given my lack of experience I am thinking it seems like a fair trade. However if I can determine that the access to carriers is something that I could obtain on my own & also obtain the product training(information) and support through the carriers themselves. This could change my opinion.

For IFP, go direct (GA should appoint you with carrier anyway) and keep the 5% they are going to take off of the top of FYC. Your RSMs (Regional Sales Manager) are available from the carriers to help you make the sales and sell their products. Pick 2 main carriers to start (Anthem BC and Blue Shield CA would be my suggestion) and learn their products. You do not need the help of a GA for IFP business. For group, yes use a GA since they get an override separate from your agent commission so it's free to use them (unless you want to become a PPGA or something).

So specifically my questions are:

In CA what if any difficulty might I have in getting appointed directly with any carriers given my inexperience or other factors?
Aetna
Blue Cross/Anthem
Blue Shield
Kaiser
Pacific Care
Assurant.
Health net

No problem, appointment on first piece of submitted business. I would steer clear of Assurant, they are not competitive in CA, Health Net PPOs are going to get you into trouble sooner or later, and PCare is now under UHC and offers a non-vested contract under which you can lose all of your clients at any time UHC determines (including if you die or retire).

Any other major players I am missing?

Nope, CA is not a huge IFP landscape. Rumor has it Cigna may sneak back in (they dumped 3400 onto MRMIP a few years ago--such nice people LOL) to get in on the potential GI market share. I would rather see Atilla the Hun ride into CA then Cigna.

Which if any would have production quotas?

None that I am aware of. Shield DID have them about 10 years ago, but has since done away with them.

2) Will the carriers typically be willing to assist me with questions I have? Do they assign an Account Executive to their agents to assist or is someone else available for help? Are they going to be upset to work with someone green or will they typically be patient and helpful?

They have an RSM available both for IFP/Senior and Small Group to assist. It really depends on how good and helpful your RSM is or wants to be. Normally they try to help the newer agents get off of the ground.

3) Looking at the carrier websites it seems like most/all of the carriers provide a lot of info and training themselves. Shouldn't that be enough to get me going? Wouldn't the minimize if not replace the need for the GA's training / support

Yes, they usually have at least a monthly training seminar both for small group and IFP so help you learn everything including new product rollouts. They usually feed you, too!. You might also consider Healthagent's (John P) IHIAA group.

4) If I do go with a GA initially and than later try to go direct with a carrier. Will this have any adverse affect on me?
A) with any of the carriers?
B) to be able to go direct?
C) on the commission levels?
D) already placed business with the carrier?

It will likely depend on what is in the contract with the GA/FMO. If they have a non-compete, it could be trouble if you want to detach and go direct. Skip GA for any IFP business and just use them for group only.

5) Lastly any opinions/experiences with going direct vs. through a GA? What are the negatives and positives of each?

I would never even consider a GA for IFP business. You lose too much. There is really NO need for a GA for that market. For group, sure they are quite helpful.

Any and all advice is welcomed.

Thank you for the help.

Agent_California

(I apologizes for the long post w/ many questions. Thought I would put it all out in one post rather than pepper the forum with several closely related posts.)

You can call me with questions. I enjoy helping new health agents in California.

(But unlike Frank Stastny, even though I live in Gilroy, I have no goats ) <<<<---forum joke.

 

[Agent-California]

I would like to thank the people who replied and for the advice. It has been very helpful to me.

I am going to take everyone's advise regarding not accepting a lower split.

Dave I really appreciate your detailed response and extended hand. I look forward to talking with you sometime.

Thanks again,
Agent-California

 

[treeves]

I have been looking at Anthem and Humana's web site for agency appointment. It appears that Humana either uses captive agents or employees, is that correct?

I cannot find anything on Anthem's site on how to be appointed.

Can someone reply with the links? Thanks!