Typical Commission Structure for Property Inurance Agent

Apr 23, 2010

Tags:
  1. celmore
    Offline

    celmore New Member

    Posts:
    6
    Likes Received:
    0
    State:
    Oklahoma
    Lots to think about. This is all alot of help and I greatly appreciate it. I stayed up all night figuring out the amount of business I think I could generate based on the properties I represent right now. I have around $120,000,000 in real estate that I rep. When we figure a proforma on real estate we use 1% cost for insurance. So if that holds true than I would have premiums around $1,200,000 per year and an income of $120,000.That is if I am doing that right. Is the E&O per account? I also will be able to bring on new business at a regular rate because of the clients I rep. They are always adding new properties and selling properties. Also a percentage of the properties I sell I should be able to write a policy for. Guys I cant thank you enough for all the help.


    Chad
     
    celmore, Apr 25, 2010
    #11
  2. djs
    Offline

    djs Super Moderator Moderator

    Posts:
    6,676
    Likes Received:
    78
    State:
    California
    There is no such thing as a commercial policy ready to sign up. It takes a lot of work to get the information, rate the risk, prepare and present a quote. This is way different than say a home or auto policy.

    Because of this, commercial simply doesn't pay 50% referral commissions. The agent would go broke paying these over time. Of course, some agents are working towards bonuses or production requirements and will pay this for a while, but not on a steady basis.

    Basically, 50% is to high for a referral. You would need a filled out Accord form for that type of rate.

    Dan
     
    djs, Apr 25, 2010
    #12
  3. celmore
    Offline

    celmore New Member

    Posts:
    6
    Likes Received:
    0
    State:
    Oklahoma
    By saying ready to sign up, I mean customers that have already said they would use me as their agent when I become licensed and have a company to work with. I fully expect it to involve an extensive amount of education and preparation. I do however expect to be able to provide around $1 million annually of preimum coverage as soon as I become licensed. I am wondering if the annual dollar amount is substantial enough for the effort. I am willing to dedicate myself to 20 hours or so a week to this.
    - - - - - - - - - - - - - - - - - -
     
    Last edited: Apr 26, 2010
    celmore, Apr 25, 2010
    #13
  4. workingsmart
    Offline

    workingsmart Expert

    Posts:
    33
    Likes Received:
    0
    State:
    Arizona
    Hello Celmore,

    It sounds like you have a pretty good opportunity to tap into.

    Well I represent Security Insurance based in Arizona. We offer various insurance products and services throughout the country including commercial building coverage.

    If you are interested, we could get you set up really soon to easily write those insurance packages on the buildings you are a part of. In return, you can receive some pretty generous commissions.
     
  5. bluesky3000
    Offline

    bluesky3000 Expert

    Posts:
    21
    Likes Received:
    2
    State:
    Hawaii
Loading...
Similar Threads
  1. agentjhc
    Replies:
    2
    Views:
    1,338
  2. AverageJoe
    Replies:
    15
    Views:
    1,579
  3. Dreamiekid
    Replies:
    3
    Views:
    325
  4. benneaf
    Replies:
    2
    Views:
    576
  5. Smit82
    Replies:
    0
    Views:
    429