What Does the Avg. Agent Make on A...?

[Gulfman]

Hi Friends,

I'm presently licensed in L/H and have been referring PC biz to an acquaintance (when asked). He says he makes "Dog Squat" ---so i haven't pressed him for referrals or a kickback (as i know this is illegal without being lic.)

Just curious: What does the avg. in house agent make on a:

• Home owners policy?
• Car insurance policy?
• Commercial PC Policy?
• Commercial Workers Comp Policy?

ALL ASSUMING ----> "they bring in their own business!"

Thanks very much!

 

[shawnmwalker]

Lets assume the average household has $3,000 in WP. At a 15% commission rate the agent gets paid $450 for every household they write. (Auto, cars, Umbrella, toys, scheduled Property.)

$450 x # of households=

If he is a mom pop agency maybe lower commissions or does not account round.

Try $2,000 in WP per household at 12%.

$240 x # of households =

 

[Gulfman]

Lets assume the average household has $3,000 in WP. At a 15% commission rate the agent gets paid $450 for every household they write. (Auto, cars, Umbrella, toys, scheduled Property.)

$450 x # of households=

If he is a mom pop agency maybe lower commissions or does not account round.

Try $2,000 in WP per household at 12%.

$240 x # of households =

Thanks Shawn,

15%???

---ok.

1. What about some of these "independent" guys who are reporting they are working from home, and getting 70% or the Commission ?----Am i way off?
2. What's the gross commission to the agency----30%?

thanks for your input!

 

[shawnmwalker]

70% of the 15%.

the carrier pays lets say 15% of the WP. Some groups will split the carrier commission and pay you 70%. (Some pay more)

 

[insurance1822]

For perspective...the average household premium in my market is $1,600.

 

[djs]

Thanks Shawn,

15%???

---ok.

1. What about some of these "independent" guys who are reporting they are working from home, and getting 70% or the Commission ?----Am i way off?
2. What's the gross commission to the agency----30%?

thanks for your input!

Gross commission to the agency is usually from 10% to 15% of the premium.

As Shawn eluded to, P&C is a numbers game. You need lots of 'things' insured to make an agency healthy. Any one personal lines account adds to the pile, but its almost never a 'big' thing. Agents thrive by volume.


Dan

 

[shawnmwalker]

Like an ant hill. One grain at a time. Over time something significant.

 

[agentinsouth]

Hi Friends, I'm presently licensed in L/H and have been referring PC biz to an acquaintance (when asked). He says he makes "Dog Squat" ---so i haven't pressed him for referrals or a kickback (as i know this is illegal without being lic.) Just curious: What does the avg. in house agent make on a: [*]Home owners policy? [*]Car insurance policy? [*]Commercial PC Policy? [*]Commercial Workers Comp Policy? ALL ASSUMING ----> "they bring in their own business!" Thanks very much!

The P&C guys gets 12%-15% every year the policy is enforced,

 

[Gulfman]

Gross commission to the agency is usually from 10% to 15% of the premium.

As Shawn eluded to, P&C is a numbers game. You need lots of 'things' insured to make an agency healthy. Any one personal lines account adds to the pile, but its almost never a 'big' thing. Agents thrive by volume.


Dan

Thanks Dan,

Am i understanding this correctly? It seems like Shawn was giving us the agency comm. not the agents comm.

If the agency gets 10-15%, then what would the agent typically receive ? (50-70% of that?)

Ex. Agent writes a home owners policy for $2K. The gross comm. is 15%. The agency gets $300. What percentage of that $300 does the agent typically get? (if its 50%, then the agent would get $150---this right?)

Can you give me an example that differs?

Thanks very much!

 

[insurance1822]

That totally depends on the agency. If they own the agency, they're getting the whole take. If they work for the agency, they're either getting a salary + commission...or 100% commission so again...it's totally dependent upon the situation.