Managing General Agent Commissions

[northwoods2]

Gents:

Does anyone have an idea of the commission percentage that a MGA gets on a policy?

Thanks!

 

[Brian_Chapman]

MGA offers full commissions on life. Life insurance companies offer different compensation packages to MGAs and brokers based on a percentage of the product’s first-year premiums. The percentage varies by product and company.

 

[Newby]

MGA offers full commissions on life. Life insurance companies offer different compensation packages to MGAs and brokers based on a percentage of the product’s first-year premiums. The percentage varies by product and company.

He’s asking in the Auto Insurance forum.

 

[MichaelRS]

Gents:

Does anyone have an idea of the commission percentage that a MGA gets on a policy?

Thanks!

It's whatever they can negotiate with the company and then with you.

You usually get two-thirds to half of what they receive.

So 10% could be 15-20% total commission to them.

Most MGAs will make 5-7.5% and then they potentially can get bonuses or contingency. It can work out but it's all about volume because they generally make less than an agent does.