Insurance Agent Forum

[NewHealthStrategies]

I will speak only for Georgia based groups.... which is a fairly sophisticated market (except for small employers). They believe that buying group insurance is like buying a copier... get three knuckle-head brokers in and fire the starting pistol and have 'em "bid" for your business.... best price wins..... 'cept we all know that game and how it doesn't work that way.

SERVICE is a key issue for most small group producers.... you have to deal with claims, billing..blah, blah, blah... sort of like writing 10 individual products at once for 4/5th less commission.

All the aforementioned entities are consolidators... I used to work with Rogers Benefit Group 20 years ago and they were great... but they simplified your life by packaging/preparing quotes, enrollment assistance and that's about it. The nuts and bolts of small group is the 24x7 service that you'll be expected to provide.

In other words, you have to look at these guys as simply saving you time on packaging 8 carrier quotes together and making it look pretty. After that, there is little they provide in terms of support to the CLIENT. THEY support YOU.

QuoteIt is coming out with Group modules pretty soon in various states, so if you're a client, I would look forward to that......

You can certainly get the carrier rep's to do the work for you.. just email them the census and they'll do the quoting.... then you're left with consolidating the quotes and packaging it into someone that can be presented.

Again, if you're going to do this and simply sell product... I suggest you'd do better NOT selling health products and simply sell the voluntary lines.... a lot more money and less hassle.

.....I bought a package of powdered water the other day, but couldn't figure out what to mix it with!!!!!

[Expat]

.....I bought a package of powdered water the other day, but couldn't figure out what to mix it with!!!!![/quote]

I have heard that if you pee on it, it will turn into liquid. Have'nt tried it myself but it sounds logical.

[djs]

Originally Posted by Chkndinner14

I am not new to the field, 14 years experience. Over the years my business has been P & C with health as secondary focus. But, times are changing and health is becoming a bigger part of my business.

I have been semi- active in the small group business (less than 15 EE's) for 7 years.

After reading this thread my question is what do Roger's, Benefit mall really offer? I am assuming it is something since many of the more experienced producers use them.

As far as quotes, I have never done a group quote. I scan the census and email to the company reps, they do the quote and email back. I pick the best 3 and go present.

So, once again what do these groups bring to the table?

Thanks

I sort of ditto this, a bit less experience, focus primarily on P&C, write several small groups (15 or less) for health. I use quotit! to quote the small group, gives a pretty good presentation.

What does Rogers or Benefit Mall or Word & Brown offer me that I don't already have?

In California, no underwriting needed, just add water, instant small group.

Dan

Anybody heard of IPA_ America High Road Leaders?
Came across them recently....Comments, opinions, anybody work with them?

[Melmunch3]

Benefitmall and Rogers benefits are really hit or miss. They have some offices that are very competent and some that are really not. I usually try to use small state or regional wholesalers for group. I have some good ones in MD, NJ, VA, IA, DC, NY, and a few other states, if anyone needs one.

My rule for small group is, I go direct with Aetna, Humana, UHC, Cigna, Principal, Trustmark/Starmark and a few scattered BCBS. Since we have a decent book with these carriers, there is a certain amount of clout and credibility that you gain by going direct. You have a better shot at late installation or rate relief if you go direct and write a fair amount. Large group is always direct.

However, if you only write a few policies with a carrier, or only write a few in a particular area, then it can be very helpful to have a good local presence that not only knows the market, but also can go out and be the feet on the street for you. This really helps if you sell over the phone far away.

They are also competent at generating quotes for you. I would never ever deliver quotes in their format because they show way too much information and it is not a format conducive to selling, but if you want some quick quotes generated, they do a good job.

[Reuben]

At the moment I am captive with MassMutual. The comnpany doesn't carry group medical, but the people I'm with has an agreement with a company to do the group/individual medical coverage, I simply refer the leads to them and will recoup 100% commission due, it's an arrangement that I can live with. However I am not too comfortable in taking a back seat to the process, I'd like to follow through from beginning to completaion.

With this in mind, I'm hoping that someone from the California/Los Angeles area who posts here, could steer me to some health people for me to sign up with, e.g., Kaiser, Blue Cross/Shield etc.

I'm not even sure that this will be possible given the contract I've signed, but I'd prefer to go into my managers office with things lined up rather than ask ahead of time.

Can anyone help me with URLs, advice etc?

Thanks in advance.

[Franz Kafka]

Check out this thread. Talk to Dave. He's extremely helpful.

How do I begin as a Independent Agent in CA

If I were you I would shut the hell up about your OBA (Outside Business Activities) with your manager. They DON'T want you working on something that'll bring no $ to the agency. Make sure you report OBA to compliance before you start.

Originally Posted by Reuben

At the moment I am captive with MassMutual. The comnpany doesn't carry group medical, but the people I'm with has an agreement with a company to do the group/individual medical coverage, I simply refer the leads to them and will recoup 100% commission due, it's an arrangement that I can live with. However I am not too comfortable in taking a back seat to the process, I'd like to follow through from beginning to completaion.

With this in mind, I'm hoping that someone from the California/Los Angeles area who posts here, could steer me to some health people for me to sign up with, e.g., Kaiser, Blue Cross/Shield etc.

I'm not even sure that this will be possible given the contract I've signed, but I'd prefer to go into my managers office with things lined up rather than ask ahead of time.

Can anyone help me with URLs, advice etc?

Thanks in advance.

[Reuben]

Originally Posted by Franz Kafka

If I were you I would shut the hell up about your OBA (Outside Business Activities) with your manager. They DON'T want you working on something that'll bring no $ to the agency. Make sure you report OBA to compliance before you start.

Actually OBA is not an issue at all here, my agency allows for going to outside vendors if a MassMutual product is not suitable for some reason or another.

[J-Ro]

Originally Posted by Melmunch3

My rule for small group is, I go direct with Aetna, Humana, UHC, Cigna, Principal, Trustmark/Starmark and a few scattered BCBS. Since we have a decent book with these carriers, there is a certain amount of clout and credibility that you gain by going direct. You have a better shot at late installation or rate relief if you go direct and write a fair amount. Large group is always direct.

Sorry if this a stupid question but.....Can you just go direct for small group and still use HCO for individual?

[IAC.Ryan]

Originally Posted by J-Ro

Sorry if this a stupid question but.....Can you just go direct for small group and still use HCO for individual?

Depends on the carrier - but generally they are more guarded on their Group business than they are on their Individual as they tend to rely on GA's to "protect their block"

-and that's just from the carrier side. It will also depends on what kind of relationship you have with HCO - ie, will they let you go around them for group - to which I have no answer.

Another question that comes up, why would you want to go around them for Group when Group is generally where agents can get the most value out of their GA? There are a lot of pieces that go into writing even the smallest of groups and leaning on their expertise would probably make your life a lot easier.

[bcbroker]

Originally Posted by Melmunch3

I will follow John's lead and take on group health. There are several people who are more qualified to write this (Like Bob) and I hope they will add to it.

I think that the first address for anyone trying to sell small group health is to visit the state department of insurance website. They are all listed here State Web Map You can usually find a list of companies that operate HMO's in that state. Some states, like Wyoming, have just one or two. Other states may have ten or more. It takes very little for an insurance company to be licensed to operate in most states, but it takes a lot of compliance to run an HMO. That means that this company is probably committed to doing business in your state.

You can call a handful of the companies and ask if they write direct or through wholesalers. In my opinion, you are far better off if there are a couple of wholesalers that operate in your state. Usually, they just take overrides that you would not have access to anyway. I have found that they usually give much better training than life wholesalers do.

They are usually happy to give you an education about the state laws, products, and specific markets. The most important information to find out is:
Do they offer all of the companies in the area?
Do they give you the full commission?
Will they come on meetings with you?
Who owns your book of business?
What is the state law on medical underwriting?
How much is the allowable rate up?
Can you get a rate down for a healthy group?
Are renewals pooled or underwritten?
Can you BOR a case that they already hold?


There are several wholesalers that operate nationally. Benefitmall and Rogersbenefits are the biggest.
Many regions have local outfits that do an excellent job. I have found that states that do not have wholesalers are often not very profitable places to write small group health. In my opinion, it is much easier to crack the market in guaranteed issue states, because you don't need too much information to get fully mature rates. It sucks to get a census, beat their rates, take apps and then get rated up to wazoo because of a hip replacement.

Commissions from reputable companies range from 1% to at least 7% and renewals often pay the same. Many companies are switching to a per enrollee or per subscriber commission. With those deals, you can make out better on the young groups and worse on the older. Bonuses can give you a substantial boost for persistency and numbers. Commissions are almost always on an as earned basis. It is also important to note you will not be getting a check when the group first goes live. This is a slow business and you need to be able to pay your bills for a while before the checks start coming in.

Underwriting is what makes or breaks you in this business. New York bases all their rates on county; they don't even care about age. Arizona can rate you up to 400%. In underwritten states, some companies will give separate rates for each employee others will average it in, so the laws on underwriting are very important. Some factors that may go into the underwriting are:
Average age
% of employees that are female
SIC code
Zip code of the business
Zip code of each individual
Overall health status
Individual health status
Current and renewal premiums

Once you have a case on the books, there is huge opportunity to cross-sell. You have free access to every single employee and an excuse to call them at least twice a year. You may also know their age, family size, where they live, and health issues that may affect their need for other products. Whenever I run my employee enrollment meetings, or do a general presentation, I drop in some information about other products into the presentation. You may be pitching group health, but it is a great opportunity to present your other areas of knowledge.

If anyone needs help getting started in their local area, you can email me and I will try to point you in the right direction.

Don't deal with Rogers Benefit Group they take half of your commission.
They splintered off from Old Northwest Agents (founded 1969) I think back in the early 90's, but still like to take control of the groups.
I am starting a dialer campaign for small groups this week in FL. for a large agency. You have 474,000 businesses that are not affiliated with the Government, to choose from.Good Luck!
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Originally Posted by Melmunch3

Benefitmall is really hit or miss with their offices. They have been invaluabl to me in Kentucky and in Michigan, but very unhelpful here in MD. For my local cases, I use a company called IMC. They spreadsheet the carriers that are competitive here, and they provide excellent support.

Have you ever tried World Insurance Association? Their home office is in GA.
WIAonline.com

Benefit Mall is someone I see at awards presentations in Las Vegas on a fairly regular basis, So I would assume that they are doing something right.