- 176
20% is generally the standard that I see - keeping in mind that with production comes the ability to negotiate for higher contracts.
But Mr. Supplemental is absolutely right - don't judge solely on your first year level.
Commission
- Thread starter RTD19701
- Start date
20% is generally the standard that I see - keeping in mind that with production comes the ability to negotiate for higher contracts.
But Mr. Supplemental is absolutely right - don't judge solely on your first year level.
- 14,809
The best punishment for a carrier with an out-of-whack increase is to roll everyone you can.
Sometimes the increases are manageable, sometimes they're in insult and unjustified.
Sometimes the increases are manageable, sometimes they're in insult and unjustified.
- 176
Individual Renewal is probably a hot enough topic to warrant its own thread but generally if the increase is that high - getting the agent to roll the business is exactly what they're doing.
Volatile rates are one of the reasons I prefer a block renewal system. Otherwise, if a state's loss ratios are out of whack it takes far too long to make the adjustments and then once the adjustments are finally made they still end up having to increase the state factor to keep the rate within the "renewal x new business" threshold.
By being able to spread the renewal across the state's block it lessens the blow and in an ideal world keeps the increase to be just a little higher than trend.
- 14,809
My job is simple - to make sure my client has the best plan on the market for the price.
Rolling has zero consequences if conditions are covered. The 2 year review period starts again which is a non-issue if a proper app is filled out.
Rolling has zero consequences if conditions are covered. The 2 year review period starts again which is a non-issue if a proper app is filled out.
Unfortunately, the dream of maintaining large client base divided by carrier subdivided by policy type with a never ending stream of renewals is just a dream. It actually takes more effort,imo, to move existing clients between carriers at renewal time, than to just leave them there and take the renewal. I don't contact everyone, particularly if I know that they have had too many health problems for it to be feasible or in their best interest, but I had a client contact me today, whose policy is up for renewal with a 20% increase~$120/mo. and no claims. She will be moved.
One thing that I will have to say about Assurant. Their increases aren't as high as some of the other carriers, at least not in the Carolinas. Its strange that they get such bad press here, but the oldest segment of my book are in old fortis plans or Time.
- 14,809
It's not about effort - if you leave your block alone it will evaporate as people dive off the books onto more affordable plans.
At 20% hike on a $400 plan is $480. That next year another whack is $576.
I think this is why I see so many agents, years in the biz, waiting for their next lead.
Just a 1 mill block of business and you move 40% of them is $400,000 X 20% commish = $80,000
So I'm at a loss as to why agents 6, 8, 10 years are still concerned with new business. Yes, you need some new business to account for drop-outs but that's not much needed.
Another factor is where you get your leads. Internet leads or non-self-employed are notorious for not lasting. Business owners will be with you for a while.
So while buying leads where overwhelming most people are just workers may be the path of least resistance it'll be like groundhog day for you - get prepared to write...and write....and write.
At 20% hike on a $400 plan is $480. That next year another whack is $576.
I think this is why I see so many agents, years in the biz, waiting for their next lead.
Just a 1 mill block of business and you move 40% of them is $400,000 X 20% commish = $80,000
So I'm at a loss as to why agents 6, 8, 10 years are still concerned with new business. Yes, you need some new business to account for drop-outs but that's not much needed.
Another factor is where you get your leads. Internet leads or non-self-employed are notorious for not lasting. Business owners will be with you for a while.
So while buying leads where overwhelming most people are just workers may be the path of least resistance it'll be like groundhog day for you - get prepared to write...and write....and write.
- 9,744
Yeah, but what about the health insurance?
I'm lovin' it down there with a re-emergence in South Florida. Even if your español is muy poquito, the premiums in Dade County (and The Keys) are huge...
Nothing to dispute there. I know it changes with years in the business, but without a steady stream of new clients, and an aging client base, they can become uninsurabe and get priced out of keeping their current policy.
As a percentage of existing client base, how many new ones should you be adding each year?
- 14,809
Indie since 2004 and at this point I can just add the occasional client - absolutely do not have to generate business at this point with renewals, referrals and rewrites.
- 265
Is your avatar the the mug shot of a guy pinched for DUI in Fort Myers? I think I saw him in today's paper.
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