Have an $11M Allstate Agency. Should I Go IA?

[BTFuzz]

Can someone tell me what 6/6 is?

6% commission on new / 6% on renewals...not good.

 

[b61mack]

it sounds like another class action lawsuit against allstate, brewing ...if they do cut your commissions 6/6. agencys would fold all over the place..you would have to sue, and then go indy,didn't the florida agents sue allstate a few years ago... of course we are adding to the rumor.. and after another 50 post. it become real..lol

 

[CaptiveBroke(r)]

I haven't heard about 6/6...the 8/8 has been in the rumor mill for some time. Usually these rumors come to fruition but
I don't believe it will happen for a couple of years. Right now, from what I understand, regions are changing their RFG and agent expected results to make it somewhat more lenient for them to get their bonus...sort of throwing them a bone for not being able to write much of the business that calls or walks through the door.

11M bucks?...Don't be too hasty. That's a big check to miss every month.

 

[Hunter]

For me it would be all about the multiplier. They arent going for what they used to but I have heard about guys getting close to 3x.

 

[Josh]

They arent going for what they used to but I have heard about guys getting close to 3x.

That'd have to be on hell of a book. 1.5-2 or so is what I've been seeing more lately. Paying 3x for a captive book would have to have a killer loss ratio, stellar retention, well established staff, and steady new business growth. Either that, or just one uninformed buyer

 

[Hunter]

That'd have to be on hell of a book. 1.5-2 or so is what I've been seeing more lately. Paying 3x for a captive book would have to have a killer loss ratio, stellar retention, well established staff, and steady new business growth. Either that, or just one uninformed buyer

Certainly could be either of those. I heard of two recently thought that went for 2.8 or so. Thought that was pretty good.

 

[BTFuzz]

For me it would be all about the multiplier. They arent going for what they used to but I have heard about guys getting close to 3x.

For a captive Allstate book? I'm not buying that ( no pun intended)...well, on second thought, 3x the 6/6 commish doesn't add up to much more than 1x anyway so maybe this is true.

 

[Hunter]

For a captive Allstate book? I'm not buying that ( no pun intended)...well, on second thought, 3x the 6/6 commish doesn't add up to much more than 1x anyway so maybe this is true.

Yea at this point I would take my statement at surface level. I will see if I can get some more info. I know 4 years ago 3x was the starting point in my part of the country but times change.

 

[imnfni]

I am a captive agent with another company with approx $1mill in premium. I have an interview with Allstate in a couple of weeks. From reading this, I probably need to be a little more cautious. What should I ask about the 6/6? What is it? What other questions should I ask?