Many insurance agents are getting an additional license in their state-a Consultant's License. Most states allow this added license without an additional exam. Just complete a simple application and pay appropriate fees.
So why would an agent want to add this license? There are several reasons, not the least of which is the new healthcare law which will limit the percentage that insurance companies can charge for expenses (15% or 20% depending on total insurance company premium). Insurance company expense ratios include commissions paid to insurance agents. Downward pressure on expense ratios mean downward pressure on commissions which means agents must find other income sources to make up the lost revenue-become a Consultant.
Consultant's can charge a fee for their services because they are working on behalf of the client. Be sure and check with your appointed carrier to see if their contract allows you to do fee-based work.
Small businesses will need to comply with literally thousands of pages of new health insurance regulations in the future. They will welcome the advice and counsel of a professional insurance agent. This will provide an incredible opportunity for a knowledgeable agent, but it has to be worth their time and effort. Commission income will not be sufficient to compensate for the knowledge, time and effort that will be expected of insurance professionals.
If you would like more information on how to obtain a license as a Consultant, drop me a note or visit our website at www.itaamerica.com.
No comments:
Post a Comment