Commission split % for producer for Grp Hlth and emp ben?

[coop123]

currently handle all billing, claims, service phone calls etc. A CSR in the office does one of the lines billing reconciliation for one group. Pay all of my expenses; travel, licensing, E&O etc

Just wondered what normal commission splits were typical for these lines.

Thanks in advance for any input

 

[scagnt83]

It depends on who does the prospecting and who closes the sale.

Getting a group is a lot harder than keeping one.

 

[coop123]

I do all that on my accounts- I’m basically paying the house a % and other than a csr calculating a self short term and long term dis bill, I handle all other aspects

 

[sbg_ben]

I’ve seen as low as 20% and as high as 40% split on employee benefits. The person at 20% had an administrator that would help him with a lot as far as I know.

We are currently paying an agent 30% and covering his health insurance on our plan. Once he is bringing in enough to cover our costs on him we will raise it to 40%. I think we are on the generous side but we are a small agency and may not offer the support of a big agency in terms of training/tech

 

[scagnt83]

I do all that on my accounts- I’m basically paying the house a % and other than a csr calculating a self short term and long term dis bill, I handle all other aspects

What else are you getting from them?
Do you have to pay your own overhead/office?
E&O?
Do you use any type of software that they provide?
Do they provide group insurance to you?
Are you W2 or 1099?

Overhead and group benefits can make a very big difference. So can being full W2. (since they have to pay taxes on you then)

 

[coop123]

I am 1099, pay my own E&O, insurance, all expenses. I pay 40% of a software cost that my biggest account utilizes. I have an office but pay for my computer that runs through their system but no specific software - the office help I receive for the CSR takes them about an hour each month to do.

And thanks for your response, greatly appreciated. was very fortunate to add a large group late last year of which all service calls come to me, my choice as I want to know its getting handled but splits have stayed the same. The account was a big $$ for both parties.

 

[mudhound]

spliting off 20-30% would be normal. It could be as low as 10% but i would balk at anything over 40%