How is your brokerage compensated? What is the fee structure?
Employee Benefits Broker Compensation Most of the time , agencies are compensate d by the insurance carriers based on a percentage of premium or a month ly fee based on the number of enrolled employees for medical insurance . For groups around Spring Harbors size , most carriers pay 4% of total premium or a $ 4 0 per employee per month (PEPM) fee for those enrolled in a medical plan . Because of the ever rising cost of medical premiums, a broker electing a percentage of premium will typically be compensated significantly more than a PEPM fee. All ancillary lines of coverage ; dental, vision, basic life , voluntary life and short-term disability , long-term disability and supplemental insurance are typically paid between 10% - 20 % of the premiums , per line of coverage . Some clients prefer a fee-based compensation arrangement , which is negotiated and paid directly to the agency on a monthly basis. In this scenario, all insurance p remiums are net of commission. All of our benefits compensation and fees are 100% transparent . We always let the client decide which compensation method they prefer. Property / Casualty Broker Compensation Property /C asualty insurance companies typically compensate brokers on a defined commission basis (a percentage of premium). Most property / casualty lines of coverage are paid at 10% to 15% of the total premium. For Spring Harbor’s property / casualty program, we recommend a fee arrangement rather than a commission arrangement. Our fee arrangement is approximately half of the percentage arrangement. For example, if your premium on a line of business is $100,000 , the standard commission is 15%, our fee would be $7,500 versus $15,000 in commission . U nder a fee arrangement all insurance premiums are issued net of commission.
All of our property / casualty compensation and fees are 100% transparent.
Page 9
Made with FlippingBook - professional solution for displaying marketing and sales documents online