Group Health Broker Benchmarks
What one group health client is actually worth to a broker over its life, cut by group size, persistency, and product mix, plus what that means for how much an agency can spend to win one. The math that governs whether your growth spend pays back.
Lifetime value (LTV) is the total commission a group generates before it leaves, and it is the number that should govern acquisition spend. Because group health commission is level and recurring, a retained group is an annuity: the longer it persists, the more it is worth, and small differences in retention swing LTV dramatically. The tables below model it by the three variables that matter, then turn it into a spend ceiling.
Table 1: LTV by group size
| Group size | Annual commission | Avg. tenure | Lifetime value |
|---|---|---|---|
| Small (10 lives) | ~$2,400 | ~10 yrs | ~$24,000 |
| Small (25 lives) | ~$6,000 | ~10 yrs | ~$60,000 |
| Mid (50 lives) | ~$12,000 | ~10 yrs | ~$120,000 |
| Mid (100 lives) | ~$21,600 | ~10 yrs | ~$216,000 |
| Large (250 lives) | ~$45,000 | ~10 yrs | ~$450,000 |
Tenure is doing as much work here as size. At ~90% retention a group stays roughly a decade, so a 50-life group worth $12K a year is a $120K asset, not a $12K sale. Pricing acquisition against the annual number instead of the lifetime number is the most common way agencies underspend on growth.
Table 2: LTV by persistency (50-life group)
| Retention | Avg. tenure | Lifetime value |
|---|---|---|
| 96% | ~25 yrs | ~$300,000 |
| 90% | ~10 yrs | ~$120,000 |
| 85% | ~6.7 yrs | ~$80,000 |
| 80% | ~5 yrs | ~$60,000 |
This is the table that should change behavior. The same 50-life group is worth $300K at 96% retention and $60K at 80%, a 5x swing driven by nothing but persistency. Retention is not a service nicety, it is the single biggest lever on what every client you own is worth.
Table 3: LTV by product mix (50-life group)
| Product mix | Annual commission | Lifetime value |
|---|---|---|
| Medical only | ~$12,000 | ~$120,000 |
| Medical + dental/vision | ~$15,000 | ~$150,000 |
| Medical + full ancillary | ~$18,000–$20,000 | ~$180,000–$200,000 |
Table 4: What you can spend to acquire a group
| LTV : CAC target | Max acquisition cost | Posture |
|---|---|---|
| 5:1 (conservative) | ~$24,000 | High-margin, slow growth |
| 3:1 (balanced) | ~$40,000 | Healthy growth standard |
| 2:1 (aggressive) | ~$60,000 | Land-grab, thinner margin |
Most agencies anchor acquisition spend to first-year commission and conclude they can barely afford to market. Table 4 reframes it: against a $120K lifetime value, even a conservative 5:1 target supports $24K to win a single mid-sized group. The agencies that grow fastest spend against LTV, not against year one.
Make this page yours: replace Table 1 with your agency’s real average commission and tenure by group size. Your own LTV is the number competitors will cite.
Frequently asked questions
- What is an employer group worth to a broker over its lifetime?
- On medical alone, a mid-sized group commonly generates $40K to over $90K in lifetime commission, and a larger group far more. Lifetime value rises sharply with retention and with ancillary attach.
- How is lifetime value calculated for a benefits client?
- Annual commission multiplied by average tenure, where tenure is driven by retention. At ~90% retention a group stays about ten years; at 96% it stays roughly twenty-five, which is why persistency moves LTV so much.
- How much should an agency spend to acquire a group?
- Set it against lifetime value, not first-year commission. At a balanced 3:1 LTV-to-CAC target, a $120K-LTV group supports roughly $40K in acquisition cost.
- What raises the lifetime value of a group fastest?
- Retention and ancillary attach. Improving retention extends tenure and multiplies LTV; adding dental, vision, life, and disability raises annual commission on a group you already own.
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Sources & methodology
- Commission inputs: PEPM and percent-of-premium ranges from Mira Health 2025 and carrier ERISA 408(b)(2) disclosures, applied to ~$650 group premium PMPM (California DMHC 2024 filings).
- Retention-to-tenure relationship: standard 1 / (1 − retention) average-lifespan model; retention tiers from Renegade Insurance, 2026 (96% top, 80–88% typical).
- Ancillary commission levels: carrier disclosures and Nava Benefits, 2025.
- LTV-to-CAC targets: standard recurring-revenue benchmarks (3:1 balanced).
- Note on figures: all LTV figures are models built from market-range inputs, not survey data. They are illustrative benchmarks; an agency’s real LTV depends on its own PEPM, tenure, and attach rates.
