Agency Fees

[Turner1]

I am curious how many agents collect agency fees and if they have found a way to include the payment within the customers policy payment.
I know with new technology this is probably doable but - since we are new - we don't know if this is an acceptable practice.

 

[insurlegend]

I am curious how many agents collect agency fees and if they have found a way to include the payment within the customers policy payment.
I know with new technology this is probably doable but - since we are new - we don't know if this is an acceptable practice.

What is the structure that you use to calculate these fees with?

 

[Turner1]

It's a work in progress but it will be based on cost incurred for processing, printing, copying, shopping (we are an independent), and inspecting of property when necessary.

We recently purchased the agency which has a lot of non-standard business. These customers are known to buy insurance and only pay for one month and then letting the policy collapse. Of course, you all know the frustration and cost that this creates. Thus, the reason for considering an agency fee.

 

[insurlegend]

It's a work in progress but it will be based on cost incurred for processing, printing, copying, shopping (we are an independent), and inspecting of property when necessary.

We recently purchased the agency which has a lot of non-standard business. These customers are known to buy insurance and only pay for one month and then letting the policy collapse. Of course, you all know the frustration and cost that this creates. Thus, the reason for considering an agency fee.

Is it a predominately low income area?

 

[Turner1]

We border a lower income area and a upper middle income area. A little unique. One of those North side/South side of the tracks thing.

 

[insurlegend]

We border a lower income area and a upper middle income area. A little unique. One of those North side/South side of the tracks thing.

I see, after reading the forums on here, many of the independent agents claim that agency fees are a bad idea. I am on the captive side so I cannot charge them regardless but I would think that focusing more effort on marketing and getting referrals from people on the north side could eliminate some of the poor quality clients and over time eliminate the need for an agency fee.

 

[Turner1]

Thanks for the input.