New producer commission

[CA Producer]

Hello Everyone,

I am new to commercial insurance and have just been offered a job at a retail agency in CA. I am being offered 40% on new business and 25% on renewals. Can you please let me know if this is a good offer? I will be given a CSR and some sort of lists to cold call. I appreciate the help.

Thank you

 

[Markthebroker]

FYI I am a commercial only agent, and I've been selling commercial insurance for almost 10 years.

The commission is reasonable, but a bit at the low end.

I'd probably say it's fair to say it will take about 5 years to get comfortable with commercial insurance, and you'll need lots of training. Commercial p&c has a high, if not the highest failure rate in insurance, so the agency is carrying a lot of risk. With all that said, the commission is fair. You could probably find something with higher commission, but your biggest concern right now should be support, both through a good csr and training. To give you some perspective, on each of the quotes I am working on right now I have at least one issue that at best you would need explained to you, or at worst you would fumble (as new agents normally do) that could cause you to loose the account, cause extra work to the agency, or put the agency and/or you at e&o risk.

As far as getting business, I suggest you read my post on getting business below. Canvas or cold call to get your first few clients, but read this, in my experience it has been absolutely lethal.

https://insurance-forums.com/community/threads/new-businesses-in-need-of-insurance.104006/

 

[marindependent]

Marthebroker is the man to answer this one. Well said.