Progressive Commission Changes

[ntbktrader]

Saw a blurb regarding new commission structure coming soon "partnership program"...anyone have any insight?

Thanks

 

[insurance1822]

I just saw this too. It appears they're increase the front end commissions based off a LR <65% and PIF count. It appears to max at 14 or 15% new and then of course 10% renewal. It's essentially worthless in my opinion as renewals is where we make our money.

 

[indienoise]

If you're like most agencies and just place business with them when other carriers won't do, you're taking a 1-2 point cut on renewals.
If you have a larger, profitable book (100 PIF, 65 or lower LR), you keep the same renewal you already have, and earn between 12-15% on NB, for market tiers that, at least here in SC, Progressive isn't competitive on.
Everyone wins, right? :/

 

[1manshow]

Typical progressive baloney...trying to get buy in from the same agents who've made them profitable. Same agents they'll throw under the bus at the first opportunity to increase profit.

We only have 350K or so with them but would love to roll it to AIC or someone similar who uses agents only AND pays contingency on profitable business.

Does anyone actually believe "partnership program" and Progressive belong in the same sentence?

 

[insurance1822]

Typical progressive baloney...trying to get buy in from the same agents who've made them profitable. Same agents they'll throw under the bus at the first opportunity to increase profit.

We only have 350K or so with them but would love to roll it to AIC or someone similar who uses agents only AND pays contingency on profitable business.

Does anyone actually believe "partnership program" and Progressive belong in the same sentence?

What blows my mind is they got all my junk that doesn't fit w/ preferred carriers....and my loss ratio is consistently <30%. I have like 250k w/ them.

 

[1manshow]

What blows my mind is they got all my junk that doesn't fit w/ preferred carriers....and my loss ratio is consistently <30%. I have like 250k w/ them.

Same here... but move one of those policies to a preferred plan and it'll bite you in the a$$

 

[RickGerlock]

What blows my mind is they got all my junk that doesn't fit w/ preferred carriers....and my loss ratio is consistently <30%. I have like 250k w/ them.

That's an amazing LR, out here in Nevada I'm happy if I can be anywhere near <70% with Progressive stuff. Running mid 90s to 105% the last 2 years. ALways some nonsense going on with my Progressive insureds

 

[BlockO]

question: this new thing of going back 5 years for all violations..... is that a nationwide thing or just in some states?

 

[Insurance Dog]

Saw a blurb regarding new commission structure coming soon "partnership program"...anyone have any insight?

Thanks

you caught a blurb, but didnt read it, yet come here to make a post?

 

[Keyboard]

I just received information on Progressive's new profit sharing Program called Progressive Priority. Progressive will be paying a performance bonus on all of the personal lines book, including auto, specialty lines and property. To qualify, you have to have:

1. at least 300 personal auto, home and/or condos policies
2. 3 year trailing loss ration less than or equal to 65 percent
3. good standing relationship with Progressive

Has anyone talked to their sales rep on this?

Anyone with the current Growth Bonus program looked at this? I did a quick analysis and I don't like it as much as the current Growth Bonus Program. This new Progressive Priority pays a multiplier based on PIF growth and Loss Ratio. If you grow but have a higher loss ratio, your bonus is substantially lower than in the Growth Bonus program. I like the Growth Bonus program because the multiplier is dramatically higher and the only requirements are to have a loss ratio less than 65% and to grow. A couple benefits of this new program is being able to lock in after September, cap on losses, bonus paid with low loss ratios even if you don't grow.

What do other people think?