What is the Going Rate for a P&c Agent

[djs]

All threads in this forum get hijacked. The question is whether the original poster jacks the thread back....

You're numbers are okay, maybe, lots of variables, lets go through some....

10 calls a day means for the same 25 days, 250 a month, 3000 a year. Does he REALLY have this many clients? Probably not. Crosselling his book will be fruitful, but not as good as it sounds on the surface. You will have to have some additional sources for leads.

I assume a call is a client encounter, not just a random phone call to an answering machine. 10 a day is a good number to strive for, but, if you are setting 5 appointments, running 3, selling 2, you will be busy.

A client will have more than one auto most of the time. Okay, I can't speak for Alabama, but in California, I average 2 per household.

If your average premium is $800, you probably have high rates. Again, I can't speak for Alabama, but in my area, comp/collision/100/300 liability will run most drivers around $600, unless they are young, then you have to worry about lapses.

Speaking of lapses, you didn't mention how these will be treated. Make sure you know.

Now, running the numbers again....
3 car policies a day times 25 days (I usually use 22 in a month, but you can work Saturdays) = 75 cars a month.

75 cars a month = a huge amount of policies. Can be done, but you will be working.

75 cars * $800 premium * 10% commission * 80% retention / 50% to you = $2400 (difference being retention).

6 months later, on the renewal, he is making the full $4800 (again, assuming 80% retention). You don't get a part of this? Or do you get 50% of the renewals as well?

Dan

 

[moeasadi]

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

Hey Jerry, If you can form your own agency from home and pay for your E&O ($3500/Yr) then work with Abram in Sacramento or Agency Bureaue service in Petaluma.They pay about 70% new and 50-60% on renewal and you own your books.Google to get their phone number.Call or email me at [email protected] if you have questions.

 

[ChillyWilly72]

Sorry been MIA for the last week. My cousin's lost his house's and is the process of moving and last week the bank showed up at my doorstep (I rent a house) asking for the owner. Been a crazy week trying to help out my cousin and find out what the heck is going on with my place, especially considering there is my two kids, the fiance, mother in law and myself here and still knocking on 10 doors a day minimum. Anyway -

As for study tips, I think you need to look inside yourself and determine what type of study person you are. I am lucky because I recently had returned to school and learned that I like quiet and no more than 4 hours a day. I took a 52 hour class on insurance which at 8 hours a day was murder and with all of my questions aggravating for the teacher making worse. His take on the class is, we are teaching you how to pass the test not about how insurance works. Bottom line is that it is mostly memorization but for me I need a functional understanding for the memorization portion to happen so I learned alot but there were holes which I spent the next 3 weeks after the class filling in by taking their online tests over and over again until I got 100% on nearly all of them. With that I passed on the first try and without reviewing questions (which is what I normally did in class - all A's). I think it also helps that I am in my 30's as I more mature a take it very seriously.

Moe, I am going to send you an email right now.

Oh yeah got another one

$2k a mo plus 50% com & 10% renew but not until Dec/Jan - maybe???

Also maybe a customer service position at a very large agency but I have to spend at least a year there before moving up to an agent and that is if there is a position available. Sounds like a load of crap to me. My experience with insurance is nil but there is nothing that says to me that I will need a year to learn it all inside and out. I am no super genius but a year? Sounds like crap to me. And I am talking personal lines only not commercial which I would then be more understanding of. So what is the real deal about the amount of time to learn this stuff inside and out?