Agent Production

[DFWInsurance]

How much premium can one producer write in a year? My partner/producer did $1.7m in new business last year, 90% personal lines. I think that is an insane number for a single producer but she acts nonchalant about it. She is the only producer I've worked with so I have no perspective.

 

[InsuranceAgent411]

If you have the markets available this is average for an experienced producer.

 

[DFWInsurance]

You are saying an "average" producer can generate $250k in commission for just new business (not including renewals) in a year?

 

[Al3x Lee]

You are saying an "average" producer can generate $250k in commission for just new business (not including renewals) in a year?

Depends on the lines of business they write, the area they're in, etc. I'd say 250K is good for a personal lines producer. Not very uncommon to see that on the commercial P&C side though. There are many producers in the world who do even more than that, but most of them have plenty of experience.

Keep in mind most of the producers doing that kind of business have excellent support staff.

 

[DFWInsurance]

Depends on the lines of business they write, the area they're in, etc. I'd say 250K is good for a personal lines producer. Not very uncommon to see that on the commercial P&C side though. There are many producers in the world who do even more than that, but most of them have plenty of experience.

Keep in mind most of the producers doing that kind of business have excellent support staff.

How much support staff does a typical P&C agency have relative to book size? We are still growing so hard to judge how much servicing our book will need this year.

 

[Al3x Lee]

How much support staff does a typical P&C agency have relative to book size? We are still growing so hard to judge how much servicing our book will need this year.

The staffing requirements depend on the industries you cater to and the size of the accounts. For instance, if you are handling accounts with revenue below $5,000, you will likely need a larger number of service staff to manage the increased volume of accounts. On the other hand, when dealing with larger accounts, your service staff may be able to handle more premium each, but these accounts are typically more intricate, necessitating a higher level of experience.

I have talked to a lot of other commercial P&C agencies. The average answer I've received is most service staff service around $2,500,000 - $3,000,000 in premium, or $400,000 in revenue if they're handling the book themselves. i.e. producer brings it in, and the account manager handles everything from renewals, customer service, certs, billing, etc.

- Granted there are many variables and these numbers could vary widely. Some larger agencies, like the one I work for, have a tiered service model. There are billing specialists, assistant account managers, account managers, senior account managers, receptionists, industry specialized service staff, carrier liasons, etc etc. In this kind of environment, I see many account managers handle larger books of $10,000,000+ in premium. It's easier for them to manage a larger book since there's plenty of other staff to delegate tasks off to.

When I worked for a small agency, we had $14,000,000 or so in premium on the books with 10 staff members. 4 commercial P&C producers, 4 commercial P&C account managers and 2 personal lines agents.

 

[RickyG]

How much premium can one producer write in a year? My partner/producer did $1.7m in new business last year, 90% personal lines. I think that is an insane number for a single producer but she acts nonchalant about it. She is the only producer I've worked with so I have no perspective.

That is a very high number for starters if we are talking about your typical home and auto policy type business. Agents in Nevada would have had to do something like 4 home and/or auto policies per day every day of a 20-22 day work month to reach that number on average. So not realistic at all.

However, if dealing with commercial then yes that is attainable in Nevada in one year. I cannot speak for other states but in my decade plus at one of the largest IAs in our state I have seen maybe 2-3 agents ever eclipse 1.5m in annual premium on NEW business, not just flipping current clients to new carriers, when selling cookie cutter auto, home, renter and toy policies primarily.

 

[DFWInsurance]

The staffing requirements depend on the industries you cater to and the size of the accounts. For instance, if you are handling accounts with revenue below $5,000, you will likely need a larger number of service staff to manage the increased volume of accounts. On the other hand, when dealing with larger accounts, your service staff may be able to handle more premium each, but these accounts are typically more intricate, necessitating a higher level of experience.

I have talked to a lot of other commercial P&C agencies. The average answer I've received is most service staff service around $2,500,000 - $3,000,000 in premium, or $400,000 in revenue if they're handling the book themselves. i.e. producer brings it in, and the account manager handles everything from renewals, customer service, certs, billing, etc.

- Granted there are many variables and these numbers could vary widely. Some larger agencies, like the one I work for, have a tiered service model. There are billing specialists, assistant account managers, account managers, senior account managers, receptionists, industry specialized service staff, carrier liasons, etc etc. In this kind of environment, I see many account managers handle larger books of $10,000,000+ in premium. It's easier for them to manage a larger book since there's plenty of other staff to delegate tasks off to.

When I worked for a small agency, we had $14,000,000 or so in premium on the books with 10 staff members. 4 commercial P&C producers, 4 commercial P&C account managers and 2 personal lines agents.

Appreciate the info! We are 90% PL so our average account size is less than $5k. We are kind of structured similar to your example. One partner who is the main producer + a CSR who handles the servicing and renewals. We recently surpassed $3m in total premium so worried we may get stretched thin this year.

 

[DFWInsurance]

That is a very high number for starters if we are talking about your typical home and auto policy type business. Agents in Nevada would have had to do something like 4 home and/or auto policies per day every day of a 20-22 day work month to reach that number on average. So not realistic at all.

However, if dealing with commercial then yes that is attainable in Nevada in one year. I cannot speak for other states but in my decade plus at one of the largest IAs in our state I have seen maybe 2-3 agents ever eclipse 1.5m in annual premium on NEW business, not just flipping current clients to new carriers, when selling cookie cutter auto, home, renter and toy policies primarily.

Thanks. Yes this is almost 95% PL. I understand Texas is a higher premium state, but she did $1.7m in true new business last year. (not rewriting existing customers) I really don't believe the previous reply where they said that is "average" for a producer.