Commission Cuts

[Allen Trent]

Nothing new, eh?

When in history have commissions been this low?

I believe carriers are having to raise rates from inflationary items. In all likelihood, agents will make more in 2024 on an account than they did in 2023 from rate changes, not from adding coverages, increased WC payrolls, additional buildings & vehicles added to policies.

In my career, agents were more upset during the years their were rate wars driving premiums down, not in years rates were going up. This time, it is even more crazy because of the expense ratio problems, reinsurance pressure, etc

 

[AZDave]

[QUOTE=" In all likelihood, agents will make more in 2024 on an account than they did in 2023 from rate changes, not from adding coverages, increased WC payrolls, additional buildings & vehicles added to policies.[/QUOTE]

This is the thinking of Allstate management, and others that beleive taking comminsisons away from the Agent is justified. I disagree.

How can taking commissions away from an Agent really help a carriers bottom line?

Agents are earning their pay this year, and we damn well should be making more.

And all this extra service work is really cutting into my fishing time!

 

[Allen Trent]

[QUOTE=" In all likelihood, agents will make more in 2024 on an account than they did in 2023 from rate changes, not from adding coverages, increased WC payrolls, additional buildings & vehicles added to policies.

This is the thinking of Allstate management, and others that beleive taking comminsisons away from the Agent is justified. I disagree.

How can taking commissions away from an Agent really help a carriers bottom line?

Agents are earning their pay this year, and we damn well should be making more.

And all this extra service work is really cutting into my fishing time![/QUOTE]

Agree with you completely.

 

[Markthebroker]

his is the thinking of Allstate management, and others that beleive taking comminsisons away from the Agent is justified. I disagree.

How can taking commissions away from an Agent really help a carriers bottom line?

Yeah man, wrong way to save money.

You don't get more work out of an ox by starving it.

You are not in good hands, lol.

 

[Lloyds of Lubbock]

Has no one told you that I'm a special boy? And I mean special in the most special way

Special to whom?

 

[ehall2]

Nothing new, eh?

When in history have commissions been this low?

Commissions didn't go from 25% and 20% overnight. Companies have been gradually lowering rates over the years. When is history have commissions been this low? They haven't. My point is they have been gradually reduced over the years. I have forgotten more about the insurance business than you will ever knowl

 

[Al3x Lee]

Commissions didn't go from 25% and 20% overnight. Companies have been gradually lowering rates over the years. When is history have commissions been this low? They haven't. My point is they have been gradually reduced over the years. I have forgotten more about the insurance business than you will ever knowl

Welp... guess I better take the easy way out

 

[Al3x Lee]

Special to whom?

Not to anyone in particular, I'm "special"

 

[Policy Monkey]

Special to whom?

Do you know who you' re talking to?! That's Al3x Lee, future National Insurance Commissioner! If you're not careful he'll ACV your life insurance! ;-)

 

[RickyG]

This is nothing new. Anytime a company needs money they get it from the agents pocket. When I got in the business in 1972 homeowner commission was 25% and auto was 20%.

WOW...I had no idea commissions were ever that high. Amazing