Allstate cut IA commissions to 9% new/renewal

[NY independent]

I have a $3 mill PL book with them running a 37% loss ratio. Nice near 50/50 auto/home mix. Commissions cut from 12% to 9%. Non negotiable. I can't move it (nobody wants the business) and I can't sell the book (same reason). Travelers cutting similarly in January. Others will likely follow. We are not permitted to charge fees (agent contract and no broker contracts are permitted). One of our large wholesalers announced 1% commission reduction on admitted CL products for January. Some of you will say, with the premiums increasing at such a steady pace, we should really not feel this but our cancellation activity is alarmingly high, PL & CL and even in our HNW division. People are moving out of NY.

 

[Markthebroker]

I have a $3 mill PL book with them running a 37% loss ratio. Nice near 50/50 auto/home mix. Commissions cut from 12% to 9%. Non negotiable. I can't move it (nobody wants the business) and I can't sell the book (same reason). Travelers cutting similarly in January. Others will likely follow. We are not permitted to charge fees (agent contract and no broker contracts are permitted). One of our large wholesalers announced 1% commission reduction on admitted CL products for January. Some of you will say, with the premiums increasing at such a steady pace, we should really not feel this but our cancellation activity is alarmingly high, PL & CL and even in our HNW division. People are moving out of NY.

I heard Allstate had cut from 9% to 7%. Maybe that's just Ca, or maybe I heard wrong.

 

[NY independent]

I think that's for the captives. Lots of them closing up here.

 

[Markthebroker]

I think that's for the captives. Lots of them closing up here.

I'm so glad I went commercial Indy.

The ramp up was a lot harder, but boy oh boy did it pay off.