Group Benefits Scale (GBS) Commission

GBS Commission Calculator 

10% of the first $50,000 of annual premium + 7.5% of the next $50,000 + 5% of the next $150,000 + 3% of the next $250,000 + 2% of the next $500,000 + 1% of the remainder.


BROKERS SAY: The CGIB group benefit scale commission calculator, is an integral part of my sales and renewal process.

I use it as tool to keep clients and prospects alike apprised of how we are compensated in the marketplace. In an environment where “disclosure” is the order of the day, I find my clients appreciate the professionalism. They also seem to like that I can simply go to the CGIB website on my iPhone and plug in their premium and they can see what the average commission should be.   Kevin M. Wallwork – Benefits Management Group Inc.

Commission Examples:

Premium is $2,000 a month ($24,000/yr) – advisor is paid $2,400 or approx. 10.0%

Premium is $20,000 a month ($240,000/yr) – the advisor is paid $15,750 or approx. 6.56%

Premium is $100,000 a month ($1,200,000/yr) – the advisor is paid $35,750 or approx. 2.98%


Frequently asked Questions and Answers

Is there an industry standard for the amount of commission a broker is paid?

NO.  There have been a number of  formulas used, but many tend to fail for smaller and larger groups.  The new GBS scale tries to provide a method to calculate a midpoint for what brokers charge.

Is the “Crown Scale” from the 1980’s a good standard to use for small employer plans?

Not really. Many brokers have been setting the commission for smaller groups at a flat 10, 12 or even 15% commission and disregarding the scale altogether.  The reason is that the effort required to implement and administer plans, as well as educate and service both administrators and employees has increased dramatically.

So does the “Crown Scale” work better for larger employer plans?

NO. Many brokers have used the “Crown Scale” as a guide for calculating commission, but then multiply the result by 2 or 3 times to calculate what they will actually charge.  The new GBS scale better reflects the increased costs, risks, inflation and overall downloading of costs to advisors.

Are all advisors required to charge commission based on this scale?

ABSOLUTELY NOT.  This is merely a guideline to help employers understand what many brokers are charging across the country.  Many brokers may use this scale to estimate and and then set a flat percentage amount.

Can I negotiate commission, higher or lower, with my broker/advisor?

Of course.  This is only a guideline and advisors are free to charge above or below this level.   Brokers and Consultants may also charge “Fee for Service” on top of, or instead of this scale alone.  Remember, that the lowest cost may also mean a lower level of service, education and experience.

Why is there not a standard commission range like home, auto or business insurance?

Each broker adds differing value to client relationships and as such may charge more or less than a “average”  broker.  Those specializing in employee benefits that take the time and effort to educate themselves to a superior level, or those that assist with HR functions, or plan administration, may for example, charge higher amounts than this.  As a result, there is flexibility to meet clients needs.