2026 Report
Average CAC for Group Health Insurance: 2026 Report
What it costs a broker or agency to win one new employer group, by channel, and how commission economics make the math work.
CAC means customer acquisition cost: Everything spent on sales and marketing, divided by the new groups that spending brought in. In group health, first-year CAC often looks steep until renewals are counted, because groups persist for years.
Quick answer: Brokers win new employer groups for $100 to $650 through referral introductions, $1,400 to $3,500 through exclusive screened appointments, $550 to $3,000 through employer web inquiries, and $4,400 to $15,000+ through paid search.
Table 1: Average CAC for group health insurance by channel
| Channel | Cost per group won | Why it runs where it does |
|---|---|---|
| Referral introductions (CPAs, attorneys) | $100–$650 | 30–48% conversion on borrowed trust; capped by partner network |
| Employer web inquiries | $550–$3,000 | $75–$250 inquiries converting at 8–14% |
| Exclusive screened appointments | $1,400–$3,500 | $300–$1,000+ meetings converting at 15–22% when held; scales with budget |
| Paid search | $4,400–$15,000+ | $30–$60 clicks at 5–9% conversion; insurance auction prices |
Table 2: CAC against commission value
Group health CAC has to be judged against renewal economics, not one year of commission. Here is the value math by group size at roughly $23–$27 per employee per month in commission.
| Group size | Yearly commission | 8-year value |
|---|---|---|
| 10 lives | $2,800–$3,200 | $22,400–$25,600 |
| 25 lives | $6,900–$8,100 | $55,200–$64,800 |
| 50 lives | $13,800–$16,200 | $110,400–$129,600 |
| 100 lives | $27,600–$32,400 | $220,800–$259,200 |
On first-year commission alone, a $3,000 CAC on a 25-life group looks thin. On the 8-year value, it’s better than a 20-to-1 return. Persistency is the whole business, which is why service quality is a CAC lever.
Table 3: CAC by group size
Appointment-based acquisition cost by group size, at typical appointment pricing. Per-employee CAC falls as groups grow.
| Group size | CAC (screened appointments) | Notes |
|---|---|---|
| 2–9 lives | $1,600–$2,900 | Highest per-life cost, fastest close |
| 10–24 lives | $1,600–$3,300 | Near the headline band |
| 25–49 lives | $1,900–$3,800 | Per-life CAC drops below $150 |
| 50+ lives | $2,300–$5,000 | Longest cycles; renewal value dwarfs CAC |
How to lower group health CAC
Time the spend to the renewal calendar. Appointment and lead budgets concentrated in September through December, when January renewals shop, convert at the top of every band, which lowers CAC without lowering spend. The conversion rate benchmarks show the calendar effect.
And build the CPA and attorney referral bench. It’s the lowest-CAC channel on the table, it compounds, and every referred group arrives with the trust already built.
Frequently asked questions
- What is the average CAC for group health insurance?
- By channel: $100-$650 through referral introductions, $550-$3,000 through employer web inquiries, $1,400-$3,500 through exclusive screened appointments, and $4,400-$15,000+ through paid search.
- Is a $3,000 CAC too high for a group health client?
- Not for a group that persists. A 25-life group pays $6,900-$8,100 a year in commission and is worth $55,000-$65,000 over eight years, so a $3,000 acquisition cost returns many times over.
- What lowers group health CAC fastest?
- Timing spend to the renewal calendar. Budgets concentrated in the September-December shopping window and the 60-120 day pre-renewal window convert at the top of every band, cutting CAC without cutting volume.
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Sources & methodology
- About Upcision: We have run outbound campaigns across 14 verticals since 2019, for clients ranging from SMB to Fortune 500. Figures on this page combine our campaign experience with published group health insurance industry benchmarks.
- Channel benchmarks: Upcision published benchmark series on lead costs, close rates, and show rates.
- PDF copy: Want this report as a PDF? Contact us through upcision.com and we’ll send it over.
- Citing this page: Writers are welcome to cite these figures with attribution to Upcision Research and a link to this page.
