Sunday, September 09, 2007

How Much Do You Make?

Seems like someone at the Billings (Montana) Gazette got their panties in a wad over agent compensation.

Regarding insurance agent commissions, we reported in the story that Blue Cross paid out $15 million in sales commissions last year, or 3 percent of the entire premium dollar collected from customers.

Three percent? Wow! No wonder he was chaffed.

Wonder how much the state of Montana makes?

Insurance companies in Montana now do more than $2 billion worth of business every year. The insurance department collects more than $40 million dollars every year for the state government through submittal of fees and premium taxes.

My calculator says 2% commission.

And what does the state do to earn their commission?

Not much.

So that's 3% to be active in the sales & service of the accounts and 2% to do nothing.

But back to the topic at hand . . .

Blue Cross won't reveal the amounts paid to top agents, but did confirm it has about 120 agents selling its policies.

Out of 24,000 agents in Montana, only 120 sell coverage for Blue.

That's a stretch.

Sources familiar with the company also told the Gazette State Bureau that as much as 80 percent of commissions goes to about half the agents, who are the top sellers in the state.

And your point is?

Seems to me that Mike Dennison has a case of paycheck envy.
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