FACT: Many employers are paying more in commission fees for their Employee Benefits Program than they should.*
It’s best to think of the commissions that are paid by your Group Insurer to your Agent / Broker as an expense added to the premiums that you pay.
If these commissions are above the “standard” scale outlined below, that has a direct impact on your premiums.
As an example, if you have 25 employees and your Employee Benefits Program is approaching $50,000 of annual premium, the commission using the “Standard” scale would be:
• First $10,000 of Annual Premium @ 10% = $1,000
• Next $15,000 @ 7.5% = $1,125
• Last $25,000 @ 5.0% = $1,250
Total $50,000 of Annual Premium @ 6.75% = $3,375
Too often, when we are asked to review an Employee Benefit Program, the commissions payable to the Agent / Broker have been set at 10% or more. The difference between commissions being paid at 10%+ and the “Standard” scale in the example above means that client is paying an additional +3.25% in premium.
Today, finding ways to manage expenses is more important than ever.
Getting the right balance between the commissions that you are paying and service that your Agent / Broker is delivering is just one of the many ways we can help you to improve your bottom line.
FACT: Many employers do not know if their Employee Benefits Program is meeting the needs of their employees, even though it is critical factor in staff recruitment and retention.
In all likelihood, your original goal when you set-up your Employee Benefits Program (EBP) was to build a better relationship with your employees and be competitive with other employers in your industry.
Today, your employee’s perception of your EBP may not be as positive as it could be.
Whether it’s a question of how well the EBP responds to the needs of your Employee and their family members, or the cost to the employee to participate in the plan, we can help you to bring your EBP back in line with your original goals.
More importantly, we help you to achieve your original goals while maintaining a balance to find ways to manage expenses.
McGowan Insurance Services has over 20 years of experience in helping employers like you find better ways to manage their Employee Benefits Programs.
Our free audit of your existing program will let you know if you are being over-charged in commission fees and determine the extent to which your program is meeting the needs of your employees.
Please call or e-mail today to arrange a convenient time for us to meet:
Don McGowan CEBS
McGowan Insurance Services Ltd.
Telephone: (416) 805-9999 or 1 800 749-7549
Email: mcgowan@bellnet.ca
I promise to respect the value of your time. Our meeting will not exceed 20 minutes.
* Commissions as a percentage of your Annual Premium should be approximately: First $10,000 - 10.0%; Next $15,000 - 7.5%; Next $25,000 - 5.0%; Next $50,000 - 3.0%; Next $100,000 - 1.5%.
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