Med Supp Agents in for Major Screwing in 2011

Insuranceman

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Let say I write a Med supp at 20 % commision 12 month advance in later part of 2010. Starting in 2011 Med supp commisions go to 5%. That means 75 % of my commisions will be charge back. How about all the renewals at 20 % goes down to 5 %. Seems to me Med supp agents are going to get a major screwing. I'm sure Health insurance will do the same.
 
Let say I write a Med supp at 20 % commision 12 month advance in later part of 2010. Starting in 2011 Med supp commisions go to 5%. That means 75 % of my commisions will be charge back. How about all the renewals at 20 % goes down to 5 %. Seems to me Med supp agents are going to get a major screwing. I'm sure Health insurance will do the same.

Commissions can't go down on existing business due to the contact you signed.

Also, how or where did you get the information that commissions will be 5% in 2011. I'm not necessarily disagreeing as MoabamaCare is screwing everyone.

Rick
 
Can you reference where you'll only receive 5% and also reference why you would get charged back commissions that were already generated?


That's the problem...there isn't any reference...on any of this. Someone should be able to come on here, with knowledge, and tell all of us who do this for a living, what is going to happen with commissions on all health products.
 
Like was already said. "IF" commissions drop it will be on all sales after the "amendment" to your commission schedules from the company. A contract is a contract... what you are currently getting paid on is in the current contract as it stands when you have business issued... that agreement can't be changed today to change something you did last month.
 
With the 80 % loss ratio kicking in next year 5 % commisions is a realistic number after you take in account for their admin expenses and profits. I can't see Insurance companies paying 20 % renewals with a 80 % loss radio no matter what their contracts say. Just my speculation but I can't see it being much better than this. Like everyone else I wish I had all the facts. I need to start woking on a plan B now.
 
With the 80 % loss ratio kicking in next year 5 % commisions is a realistic number after you take in account for their admin expenses and profits. I can't see Insurance companies paying 20 %

So your an Actuary too?

I recommend just sticking to sales and stop worrying about things we cant control and really know nothing about. Just a thought.

Insurance sales have had SOOOOOOO many "killers" over the years and we're all still in business.
 
I've been calling around but nobody knows anything. I know a screwing is coming I just don't know how deep.
 
With the 80 % loss ratio kicking in next year 5 % commisions is a realistic number after you take in account for their admin expenses and profits. I can't see Insurance companies paying 20 % renewals with a 80 % loss radio no matter what their contracts say. Just my speculation but I can't see it being much better than this. Like everyone else I wish I had all the facts. I need to start woking on a plan B now.

I'd bet that the loss ratio modification will be on future policies issued... not current books of business. I've been selling health products for 16 years and I've seen some big changes in the market and state mandates... never have I seen a change take place on an existing contracts.

That in mind... get out there and sell sell sell... what you write at a higher commish stays at a higher commish. That will be the saving grace for those of us with a larger book of business if/when the commish does drop. The current stuff keeps paying us as is... so that'll give us time to add more clients to make up for the loss of commish rates. Adding more clients will be easier since more of the newer/smaller book agents will bail.
 
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