P&C commission question

Jun 13, 2008

  1. loudee
    Offline

    loudee Super Genius

    Posts:
    144
    Likes Received:
    1
    State:
    Pennsylvania
    I have a question for you P&C guys. A friend of mine just got interviewed by an Independent agency and some of the commission rates he was quoted seem very high. They were telling him:

    auto - 18% first year then 15% renewal
    home owners - 20% first year then 15% renewal
    commercial - 18-20% first year and 15% renewal

    How far off are these and what is the general commissions for these type of policies?

    Thanks,
    Lou
     
    loudee, Jun 13, 2008
    #1
  2. djs
    Offline

    djs Super Moderator Moderator

    Posts:
    6,676
    Likes Received:
    78
    State:
    California
    I don't know what is paid in PA, so maybe this is the norm for the area, but these are high commissions.

    Auto - 10% or so, first year and renewal.
    Homeowners - you are about right, 20% first year, 14% renewal average.
    Commercial - more like 8% - 12% (lots of variables here).

    Of course, right now, there seems to be a lot of 'contests' going on, double commissions, etc. This might be a short term offer.

    Sometimes, commissions are paid only on base rate, not on the full rate. I would ask questions, use examples, be very clear on how commissions are calculated and when they are paid.

    Dan
     
    djs, Jun 13, 2008
    #2
  3. RayGroupInsurance
    Offline

    RayGroupInsurance Super Genius

    Posts:
    117
    Likes Received:
    0
    State:
    Utah
    In Utah it's about:

    Auto - 10% new sales and renewals
    Home - 10-15% new sales and renewals
    Commercial 15-20% new sales and renewals
     
  4. Steve
    Offline

    Steve Super Genius

    Posts:
    135
    Likes Received:
    0
    You're right. There are many variables in Commercial. BOP's can pay different than CPP's, and Worker's Comp is as low as 4%, and that's a big piece of the AP. BAP's pay less than Personal Auto.
     
    Steve, Jun 13, 2008
    #4
  5. MaggieMae
    Offline

    MaggieMae New Member

    Posts:
    7
    Likes Received:
    0
    If that is the commission, what is the split, local that seems high from what I have gathered. But the splits around here has been my question, broker=?% sales producer=?%.
     
  6. loudee
    Offline

    loudee Super Genius

    Posts:
    144
    Likes Received:
    1
    State:
    Pennsylvania
    He told me the split was 50/50.

    I can only imagine what an independent agent and a good book can make just in renewals.

    Lou


     
    loudee, Jun 13, 2008
    #6
  7. Soaringagent
    Offline

    Soaringagent Guru

    Posts:
    624
    Likes Received:
    0
    That seems about right.... probably depends on the area.
     
  8. insureitnow
    Offline

    insureitnow Super Genius

    Posts:
    163
    Likes Received:
    0
    I'm independent in Florida. Direct with most carriers. I must be doing something wrong. With a few exceptions, the agency gets 12-15% new and 10-12 renewal. Commercial is generally 10% across the board.
     
  9. kent1108
    Offline

    kent1108 New Member

    Posts:
    5
    Likes Received:
    0
    Insure in the know, can you please see my post above and provide me with some answers if you get a moment? I tried to PM you, but apparently I need 20 posts before I can.

    Thanks!
     
    kent1108, Jun 21, 2008
    #9
  10. threlvnfan
    Offline

    threlvnfan New Member

    Posts:
    4
    Likes Received:
    0

    Any information on what Workers' Comp renewals are like?
     
Loading...