What is the Going Rate for a P&c Agent

[ChillyWilly72]

I am out searching for my first p&c job and have had a couple of interviews since starting looking about a week ago. The problem is these interviews were with what seem to me to be shady companies that want to stick solely to auto with an emphasis on bad drivers. Additionally they seem to pay pretty low, but really I don't know what is normal to make a correct judgment. Can you guys chime in and let me know what you have seen to be standard?

So far I have seen the following

50% broker fee, 0% commission, 0% renewal, they own the book
36% broker fee, 10% commission, 0% renewal, they own the book

Thanks

Jerry

 

[moeasadi]

I have not seen any standards yet. Every agency and contract is different ,depending on level of support and markets they offer. I think 65/35 split on new and renewal is very good.good luck

 

[hdlabs]

Agree that its no standard---each agency or company will pay differently. The sub standard auto is higher premiums and they're not too likely to shop or have many choices so the retention will probably be higher.
One agent I know of offered 24k salary for 2 years plus 30% commission on new and renewals. After 2 years---40% on new and renew and no salary......

 

[djs]

Hmmm, being paid on broker fees can kill you. Most people have wised up to these and it makes it a harder sell.

My guess is they sell primarily to the non-standard market, a lot of liability only policies, premium is pretty low, so they add in a $100 broker fee to make some money. For you to make money on this deal, they would have to have people lined up for you to write.

I would pass on these deals, unless there is something else to it, like a salary.

Dan

 

[ChillyWilly72]

Great thanks

I got a 3rd one yesterday but he will not be hiring anyone for a month or two and I think I may have blown that one with my big mouth letting out too much info. I basically said I didn't want to be a slave (not these exact words) working 12 hours a day 7 days a week for more than the first half year while I get experience. The problem is what I meant was that I feel I should get a good enough handle on what I am doing that 12hrs/7ays should not be necessary. Oh well, easy come, easy go.

BTW his agency pays 70% on initial and 20% on renewals

Jerry

p.s. thanks a lot fellas your input and my experiences are putting a bit more clarity on what there is to expect and what I need to stay away from.

 

[InsAgent007]

The 65/35 split is pretty standard in my area. Each agency does things different, but 70/20 still aren't bad commission numbers.

 

[moeasadi]

Great thanks

I got a 3rd one yesterday but he will not be hiring anyone for a month or two and I think I may have blown that one with my big mouth letting out too much info. I basically said I didn't want to be a slave (not these exact words) working 12 hours a day 7 days a week for more than the first half year while I get experience. The problem is what I meant was that I feel I should get a good enough handle on what I am doing that 12hrs/7ays should not be necessary. Oh well, easy come, easy go.

BTW his agency pays 70% on initial and 20% on renewals

Jerry

p.s. thanks a lot fellas your input and my experiences are putting a bit more clarity on what there is to expect and what I need to stay away from.

Send me an emai please at [email protected] to discuss some possibilities.

 

[curiousgeorge]

A few weeks ago I posted something asking to hear from anyone that has recently gotten into the P&C business. I'm looking for some advice since I will be starting to study for my P&C license very soon. How much would you reccomend that I study each day? What is one area I should focus on most?

Please give me a little bit of feedback as I am pretty nervous about a new venture

 

[nec]

A few weeks ago I posted something asking to hear from anyone that has recently gotten into the P&C business. I'm looking for some advice since I will be starting to study for my P&C license very soon. How much would you reccomend that I study each day? What is one area I should focus on most?

Please give me a little bit of feedback as I am pretty nervous about a new venture

A.D. Banker has a pretty good study course online that will take you through the generalities of P&C. The test is split up in four parts. First two are general Property/general Casualty. Then they have the state specific Property/Casualty. I would recommend that if you are paying for the testing yourself, study as hard as you can everyday and take as many practice tests as possible. The general will be a breeze if you take practice tests, but don't be surprised to see questions on the state specific part that you have never seen in the study books.


As for the original post, like stated there is no industry standard. I interviewed with two companies in my small town (total pop. 3300) one guy offered 65/35 and he owned the book. The other company, who I work for, offered 30K salary plus 60/40 they own the book. I think it pays to work with larger agency's, not just for health care, 401k and retirement matching, but you can use a huge span of other agents to bounce ideas off of and the support is amazing. Good Luck!

 

[justanumber]

Hi,

I'm new here and I don't want to hijack your thread, but I have a similar dilemma. I've been offered a position where there is a 50/50 commission split. Starting out cross-selling existing clients for auto insurance. The way math has been presented to me is as follows:

Make 10 calls a day and close 3 of those policies.
Assuming the average 6 month auto policy is $800 that is $2400 a day.
25 working days in a month makes for $60 000 in premium
Avg agency commish is 10% which is $6000 to the agency, $3000 to me.​

Does his math make sense?? He has offered to pay me a salary for three months until I can get going...

I don't own a book of business, but I have some centers of influence that throw business my way and if I leave my current position, they will follow, adding to what I would make soliciting this agent's existing clients. I also write commercial insurance and prospect frequently. I worry about leaving a situation where I get a salary + commish(meager as it may seem sometimes) but it has made me complacent and I don't have the zeal I once had for my current employer. (Hence my screen name)