Agent Compensation Ideas

[AgentTalk]

I work for an insurer that is evaluating our compensation structure. We are not convinced that base commissions are driving profitable growth. What are you seeing in the marketplace that you like/dislike? What would you like to see in the marketplace?

 

[insurance1822]

I can tell you that I push everything to my top paying carriers & avoid placing business w/ them that fits from a pricing standpoint...but has frequency issues I'm not OK with.

I give my lowest paying carriers the garbage & don't think twice about it.

 

[djs]

I work for an insurer that is evaluating our compensation structure. We are not convinced that base commissions are driving profitable growth. What are you seeing in the marketplace that you like/dislike? What would you like to see in the marketplace?

Commissions can drive growth or cause lack of growth if to low. Structured bonuses on top of commissions drive targeting your market to what you want, enabling profitable growth.

Basically, don't just tell agents what you want, incentivize them to provide it to you. Make sure those are in alignment, I've seen it frequently where carriers say they want one thing, but the money (or premiums) is in writing something different.


Dan

 

[MGBAgency]

I work for an insurer that is evaluating our compensation structure. We are not convinced that base commissions are driving profitable growth. What are you seeing in the marketplace that you like/dislike? What would you like to see in the marketplace?

Which carrier? A lot are going down. Encompass in my opinion has the best contract in the market.

 

[AgentTalk]

We are trying to discuss ideas that keep our agency partners happy as well as enable the insurance company to attain more profitable accounts. How can we structure our compensation package to accomplish this?

 

[cottonland]

I work for an insurer that is evaluating our compensation structure. We are not convinced that base commissions are driving profitable growth. What are you seeing in the marketplace that you like/dislike? What would you like to see in the marketplace?

Two words...... FRANCHISE VALUE.....

 

[insurance1822]

Because of Encompass's commission structure, we give them the creme de la creme & field underwrite the heck out of what we put w/ them (our average loss ratio w/ them including CAT's over the last 4 years is like 35%)

For agents who are making the contingencies...we absolutely field UW the hell out of what we're placing w/ our top paying carriers.

I like the idea of tying inspection results into comp

 

[TwoLabs]

Yup. Echoing what others have said.

The companies cutting commissions will be left with the junk. The companies still paying us a respectable commissions will get the top of the line business that we front line UW like crazy.

 

[indienoise]

I echo the sentiment that the carriers that pay me well and treat me well get more business and better business.

I will say though I have one carrier that this has backfired with, I've gotten much more picky about what I write with them, and the volume has definitely dropped off...

 

[Derrick]

I can tell you that I push everything to my top paying carriers & avoid placing business w/ them that fits from a pricing standpoint...but has frequency issues I'm not OK with.

I give my lowest paying carriers the garbage & don't think twice about it.

I... I agree with ins1822 for once.

Insurance companies treat us like crap deserve the same treatment by us. It's called reciprocation. Field underwriting is a real thing and the agency channel has proven to be much more profitable than direct lines because of it.

There are better options, better insurance companies that pay us 15%+ and we can still pull loss-ratios at 70% during good years. Something direct lines can only dream of.