of intentions, Wallace says, but will lack the
sophistication and savvy of a licensed agent.
Jean Heisler, president of Ronan
Insurance agency in Brick, N.J., and the
government affairs representative for the
Independent Insurance Agents & Brokers
of New Jersey, says the state has not yet
decided on what it is doing with exchanges.
Commissions remain a concern, she
says, and for now, they still remain viable.
In her experience, commissions are down 10
percent over the past two years to less than
5 percent for small groups—and her agency
receives a flat fee on individual accounts.
And if they get much lower, she adds,
“then we can’t keep going.”
BIG PROBLEMS FOR SMALL BUYERS
On the buyer side of the equation, small
companies (50 or fewer employees)
may find it hard to locate producers
desiring their business. One primary
reason producers might not want to deal
with smaller groups is because insurers
are beginning to show signs of shifting
payments from a commission basis to a
low, set monthly remuneration.
Brian Deitz, senior vice president for
Reagan Consulting, says when it comes
to the employee-benefit business, there
are two camps: One is small group (50
lives or fewer); the other, large group
(51 lives or more). Employers in the
large group will presumably continue
to stick with purchasing insurance in
the private market, while smaller shops
may opt to abandon private insurance
company placements and leave their
employees to shop for coverage through
Deitz says one of the major unknowns
is exactly what an agent’s role will be
in that case: “What happens to agents?
Nobody knows.” NU
Massachusetts could be the
example showing agents what
their future may look like.
ATTENTION MGAs / INSURERS
CSI is an A+ A.M. Best rated P&C/A&H insurer
licensed in all 50 states, the District of Columbia
and Guam, with a Life Insurance affiliate (Rating
is effective May 6, 2011 for the latest rating,
access www.AMBest.com). We have been in
business over 33 years and our Parent Company
has an AA+ rating from Standard & Poors.
CSI is looking for partnership opportunities
with MGAs or Insurers who would like to work
with an A+ rated carrier.
If Interested contact:
Central States Indemnity Co. of Omaha
Make sure your residential and commercial
properties are protected. SWBC offers Excess
Flood insurance nationwide, and even Flood in
non-participating communities and CBRA areas.
Applying is easy. Sign up and begin offering your
clients SWBC flood protection today!
PAYS A VISIT
BEFORE MOTHER NATURE
We specialize in coverage for:
• Home medical equipment providers
• Durable medical equipment providers
• Respiratory and sleep study facilities
• Orthotic and prosthetic providers
• Medical equipment manufacturers,
distributors and other related companies
RESTORER & BUILDER INSURANCE
Not only do we insure collector cars, now we
insure the people who restore & build them!
• Cars Being
• Vehicles Under
• Tools &
COLLECTOR CAR RESTORER & BUILDER
• Commerical Auto
• Agreed Value
• Building and Contents
IN BUSINESS OVER 60 YEARS
RESOURCE MARKETPLACE CONTACT