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Professional employer organizations (PEOs) and insurance agents have been traditional competitors because PEOs provide Workers’ Compensation and Health insurance under their master plans to client firms. But times have changed. 

In the late 1990s, three PEOs were formed with plans to enter into marketing agreements with insurance agents. All three quickly grew to rank among the 10 largest PEOs in the U.S. Later, many other PEOs started to offer sales contracts to insurance agents while retaining a direct sales force. Today, most of the 25 largest PEOs will provide a sales contract to insurance agents.

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