Insurance Journal Forums

If you could advise of young agent looking to start his own agency.. You advise them to sell health care or stay away from it..

In your opinion, is health care more profitable than sell commerical insurance..

How is the comsission paid on these accounts.. I heard something like 10 percent..

I wouldn't sell health care, maybe health insurance though. Sorry for the smart alec remark, but I think this is one of the problems with Obamacare. They keep calling it healthcare reform, but the only thing they changed is health insurance. They really need to reform HEALTH CARE.

Health Insurance used to pay a standard 10% commission, but that has gone down substantially and will continue to go down. The problem with advising you on whether or not to sell health insurance is that none of us knows the future of this line.

I would be careful being too much of a generalist and make sure you focus on knowing the coverage of what you are selling. There are too many agents that are just selling price and don't really offer much in the way of insurance knowledge.

Good Luck.

Thanks for gettting back to me.. I agree with you about the goverment.. thats why I have chosen to stay on the side lines..
When that said.. I don't want to miss an opportunity.. At the end of the day people or business still need the coverage..
I guess comes down to individual..

As far as a startup agency goes (at this time), I'd stay away from it. Concentrate on those lines that will help you build your commission base the fastest so you can survive. As you continue to grow you can always expand into the other lines. Remember, the first year is the hardest!

waves101 wrote:As far as a startup agency goes (at this time), I'd stay away from it. Concentrate on those lines that will help you build your commission base the fastest so you can survive. As you continue to grow you can always expand into the other lines. Remember, the first year is the hardest!

Thanks.. I'm starting to see the pattern here..

I completely disagree. If you team up with a good health insurance intermediary like Word and Brown, or Warner Pacific, they do most of the work and you just collect commissions. You will learn a bunch, but have top rated support. Way better than you get from P&C. That's from someone who has made their living in p&C for the last 25 years. Let the brokers leverage your P&C relationships to lock in this key portion of any business account. Don't think that their benefits broker is gunning for their work comp and package..

Shawna, CIC