Plans that don't pay Commission- Poor Management/ Poor Planning

[RickyBA]

If an insurance company has plans that don't pay commission to agents, what message are they sending about their company?
They take agents for granted.
They're poor planners.
They're greedy.

 

[Tahoe Ray]

If an insurance company has plans that don't pay commission to agents, what message are they sending about their company?
They take agents for granted.
They're poor planners.
They're greedy.

They don't want the business.

Same with an annuity carrier right now with a terrible rate. Or like getting quotes from contractors and they're all pretty close except for that one guy that is triple the next highest bid.

They'll take the business, but they really don't want it.

 

[marindependent]

getting quotes from contractors and they're all pretty close except for that one guy that is triple the next highest bid.

C'mon @Tahoe Ray - that is totally how you operate selling financial products. "I am twice as good, and my products are three times as expensive - I dont need the business, but if you want to pay more - I am more than happy to oblige.

@RickyBA - I agree - the insurer does not want the biz.

 

[walthamny]

There could be a legit reason for this because of reinsurance. If an insurance company is told by reinsurance they have too much exposure in Florida, one way to reduce exposure is too jack rates in Florida so over time and let things catch up. The other way to reduce is to F*&^&%&%*#@$@ agents in Florida anyway possible. The first one usually requires getting division of insurance to agree to rate increases, the second act requires no preapproval.