Rate my PL Producer Compensation Plan

[marindependent]

We consider anything that brings in $4000 or more revenue to be high net worth/VIP.

One additional Thought:

True affluent clients risk managment situations will rarely be completely solved in the first year, so just getting paid for the first years sale mostly misses the point. The first renewal is where a lot of additional exposures get addressed, discussed, and potentially solved.

 

[Mattarono]

BTW, what's the problem with Oklahoma, Kansas, Florida, Texas. I thought that home insurance in these states shouldn't be that high. They're twice expensive than in CA...probably related to the weather in these regions or what? I feel sorry for these people because you need a lot of money to pay for such insurance there. You probably need to have a good Liquid net worth to survive there. Thank God it's far cheaper in my state and I don't spend all of my income on the insurance...

 

[ModernInsurance]

BTW, what's the problem with Oklahoma, Kansas, Florida, Texas. I thought that home insurance in these states shouldn't be that high. They're twice expensive than in CA...

^ All of those states except FL are in the infamous tornado alley. And Florida has its own fair share of natural disasters to deal with.

 

[Nautilus5711]

^ All of those states except FL are in the infamous tornado alley. And Florida has its own fair share of natural disasters to deal with.

I don't think it's the tornados per se, as it's incredibly rare to be a direct victim of one but the spring storms that accompany them regularly cause roof and gutter damage.

 

[Hawaii Agent]

$60,000 in new business revenue. ($300,000 in premium.)

Your ave. comp is 20%?! I have no idea how to gauge your plan w/o knowing your base. The other thing you need to think about is as the book grows, so does your servicing responsibilities which will hamper your ability to sell. I would seek out a comp plan that would generate renewal comp on everything and also figure out the point at which the company will hire you a CSR. PL policies are at lot of work (especially nowadays with low interest rates). I would also factor in a way for book ownership of the policies that you generate through your own COIs.

In response to others questions about Hawaii & our low cost of ins, HI is notoriously a shitty place to do business. Our HO rates have been low (I'm guessing no major fire/wind risk and lower liability due to the "aloha spirit"); however, we've seen major increases in HO6 rates and have had 3 markets leave the islands because of how shitty it is to have an office in the state.