“and we want the Governor, legislators, Insurance Commissioner and employers to know that there are insurance companies willing to step up to the plate and do the right thing”
Horay for you boys. To imply that a major reason for rate reductions is by eliminating “large commissions charged by brokers” is terribly misleading. 5.5% commission (or less on some accounts through State Fund) is certainly not large, or for that matter barely enough to support normal expenses to run a profitable agency.
The really cost problems stem from areas such as over utilization, lack of controls to enforce the california fee schedule, unneccessary office visits, surgeries and out right abuse of the system.
Ya, 5% commission is really the culprit! Wake up and smell the roses carriers and lets tackle the real problems!
Let’s clarify this .
We independent agent are only averaging
5% commission on ‘Premium dollars paid’
This is very little than you portrait.
This amount pays for our service and continue support to our clients, making sure they’re marketed every year to get the best deal.
Yet we welcome the new “Direct Carrier”
as with any competition.
You may be the “Flavor of the month ”
But competition will eventually pickup
and you may eventually have to open your doors to outside “Commission”
paid agent. Which I would be interested
No offense, But your representing the facts that your “Low rates ” are due to not paying Large Commissions,
this is not true.
I second that. The largest difference is porbably more accurately related to your not being in the fray when work comp rates were under the “Cost of goods sold”. If your product is good sell it on that premise instead of using us as your scapegoats.
I agree with the 2 gentlemen who posted before me. I’m sorry but 5% commissions are not the reason ED is able to be so much cheaper. THE reason ED is so competitive is because they are a nascent player in the CA WC arena. They have not been around long enough (
“and we want the Governor, legislators, Insurance Commissioner and employers to know that there are insurance companies willing to step up to the plate and do the right thing”
Horay for you boys. To imply that a major reason for rate reductions is by eliminating “large commissions charged by brokers” is terribly misleading. 5.5% commission (or less on some accounts through State Fund) is certainly not large, or for that matter barely enough to support normal expenses to run a profitable agency.
The really cost problems stem from areas such as over utilization, lack of controls to enforce the california fee schedule, unneccessary office visits, surgeries and out right abuse of the system.
Ya, 5% commission is really the culprit! Wake up and smell the roses carriers and lets tackle the real problems!
Let’s clarify this .
We independent agent are only averaging
5% commission on ‘Premium dollars paid’
This is very little than you portrait.
This amount pays for our service and continue support to our clients, making sure they’re marketed every year to get the best deal.
Yet we welcome the new “Direct Carrier”
as with any competition.
You may be the “Flavor of the month ”
But competition will eventually pickup
and you may eventually have to open your doors to outside “Commission”
paid agent. Which I would be interested
No offense, But your representing the facts that your “Low rates ” are due to not paying Large Commissions,
this is not true.
I second that. The largest difference is porbably more accurately related to your not being in the fray when work comp rates were under the “Cost of goods sold”. If your product is good sell it on that premise instead of using us as your scapegoats.
I agree with the 2 gentlemen who posted before me. I’m sorry but 5% commissions are not the reason ED is able to be so much cheaper. THE reason ED is so competitive is because they are a nascent player in the CA WC arena. They have not been around long enough (
The Fremont Boys running amok in the market, slashing prices and shooting for marketshare…