A recent article in Forbes reports the immenent demise of commissioned health insurance agents. Although independent agents provide valuable services to their clients, insurance companies under pressure from Minimum Loss Ratio requirements under ObamaCare, will jettison their preferred method of distribution out of neccessity. It is estimated that 100,000 independent agents will be “fired” by health insurance carriers in the next year.
Our advice to health insurance agents to survive, and thrive in their choosen field is to quit. Yes, quit receiving commissions from health insurance companies. Write every carrier you represent and tell them you no longer require them to act a payroll master for you and for your clients. Tell them you have decided to get paid directly from the clients you represent, thank you very much!
By this simple act, you become an agent for your client, not the insurance company. You will truly represent their interest, probably for the first time. Your value will be determined by the clients who agree to pay you, You will enjoy new friendships and you will earn more money than you ever thought possible. You will be truly independent.
In Texas you will have to be licensed to receive fees directly from your clients. A Life & Health Insurance Counselors License and a Risk Managers License are required. You should apply for these licenses right away, or face the unemployment line next year.