E&S Carriers Commissions

Discussion in 'P&C Insurance Forum' started by dahonored1, Jul 13, 2017.

  1. dahonored1
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    dahonored1 Expert

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    Just wondering, do all E&S carriers pay only 10%? I spoke to a few today and they all basically said screw off and hung up on me. I told them I have about $1MM premium to move to them and they just shrug me off like it was no big deal..am I doing something wrong?? lol
     
  2. Web320
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    Web320 Expert

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    I suppose it depends on the type of business you are looking to move, if its packaged business vs. mono-line, etc.

    What are you trying to roll?
     
  3. PhilL
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    PhilL Guru

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    Also, in what State or States is the business you are looking to place?
     
  4. dahonored1
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    dahonored1 Expert

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    it's packaged, it's a supermarket with a food court inside.
     
  5. jlanier
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    jlanier Super Genius

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    Why is it E&S? Do you not have a standard carrier that will look at it?
     
  6. dahonored1
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    dahonored1 Expert

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    A little background on why its going to E&S, they had a claim before and no one really writes huge supermarkets with commercial exposures along with restaurant exposures on the inside. Bottom line, I am paying commissions to the producer that's bringing this business along and since it's such a big account, I made a deal with him that he'd get a bigger spread on it so I am trying to figure out if 10/10 is the norm, (or can that be negotiated?).

    ----------

    I am located in NY.
     
  7. jlanier
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    jlanier Super Genius

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    It can definitely be negotiated. 15% is not unreasonable. Do you have a close relationship with a broker? I negotiate with Burns and Wilcox all of the time. Brokers can pretty much choose their cut. I've worked large cases where commission is totally cut and a large flat fee is applied.
     
  8. rbadoux
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    rbadoux Expert

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    You have 1mm in premium. You have the choice on who you do business with, this also reciprocates the opposite way. 1mm for large E&S carriers mean almost nothing to them.

    Keep searching, you'll find a right fit.
     
  9. robtmccarthy
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    robtmccarthy Super Genius

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    If your still looking for a wholesaler to play ball I can recommend a few New York MGa's that will step up the commish
     
  10. adjusterjack
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    adjusterjack Guru

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    Yes, you are.

    E&S carriers work through brokers like Burns & Wilcox, Crump, Marsh & McLennan to name a few. There's probably a directly online someplace.

    The carriers don't work directly with agents.

    The brokers get their commission and, in turn, pay the agents.

    By the time you pay your producing agent, you'll be thankful that you have a million dollar premium cause the commissions will be spread pretty thin.
     
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