Commission Cuts Effective January 2010?
- Thread starter treeves
- Start date
- 5,058
I thought the poster said "GA" contract not writing agent...
If an Assurant GA contract is 25% now and writing agent is 20%, then if the GA contract under the new comp system is 12%, writing agent should be around 9.6%.
- 14,808
The GA level will likely be nixed. Currently Assurant SGAs receive 30%, GAs get 25% and agents get 20%. The middle layer will likely go bye bye.
- 5,058
You would hope so...
Don't forget in every insurance line, you have someone wanting to earn an over ride for basically nothing.
But I'm not so sure, just like I'm not sure internet lead prices will be dropping...
- 14,808
Lead vendors don't dictate the price of leads. The market does. Agents need ROI or they cancel. That will not change when reform hits.
Right now agents are likely in the game with a 1:5 ROI. If comp drops will those same agents accept a 1:2 ROI? Unlikely.
If comp is cut to say 10% either lead prices will go down or the vendors will have to focus more on senior and P&C.
Right now agents are likely in the game with a 1:5 ROI. If comp drops will those same agents accept a 1:2 ROI? Unlikely.
If comp is cut to say 10% either lead prices will go down or the vendors will have to focus more on senior and P&C.
- 500
We are all just guessing in the dark...there are too many variables in this whole process to guess at the future. Do we really know the Bill that has passed will be the Bill that is implemented? If a new President/Congress takes over, could major parts of the Bill be de-funded or even dare I say, the entire Bill be repealed?
Also, remember, we are talking about huge organizations like insurance companies and the government that will have to put this all together. Setting up policies and procedures could drag on much longer than any arbitrary deadline date set in the Bill.
But what we do know is:
1.) If the insurance companies can find a way to get the agent out of the picture, they will. We cost money and hold them to contracts.
2.) If you think your GA or carrier rep knows any more than you do, you are sadly mistaken. However, I would love to know what Mr. Nelson at Warner Pacific knows
3.) The insurance companies will keep us guessing to the last moment - they want us to keep selling and they want us to keep buying the "I love you man" and "we need you" crap.
Also, remember, we are talking about huge organizations like insurance companies and the government that will have to put this all together. Setting up policies and procedures could drag on much longer than any arbitrary deadline date set in the Bill.
But what we do know is:
1.) If the insurance companies can find a way to get the agent out of the picture, they will. We cost money and hold them to contracts.
2.) If you think your GA or carrier rep knows any more than you do, you are sadly mistaken. However, I would love to know what Mr. Nelson at Warner Pacific knows
3.) The insurance companies will keep us guessing to the last moment - they want us to keep selling and they want us to keep buying the "I love you man" and "we need you" crap.
