Price Negotiations and Flexibility

[Liz]

How much flexibility do you generally have when negotiating a price with a customer / what factors does it depend on?

 

[LGilmore]

What insurance product are your referring to where the agent sets the price?

 

[donamese]

Price is set by the carrier. We can pick and choose by commission vs premium I suppose but usually you are at the liberty of what they qualify for then selecting a good premium so another agent doesn't walk in after and take your client.

 

[agent m]

A differed annuity with modal contributions I guess could be construed that way...bit of a stretch though.

 

[goillini52]

How much flexibility do you generally have when negotiating a price with a customer / what factors does it depend on?

The only flexibility we have is to go with a lower priced carrier. Other than that, it would be to rebate part of our commissions... that's illegal, and we'd loose our license. In some states rebating is punishable by death by firing squad!

 

[Josh]

The only flexibility we have is to go with a lower priced carrier. Other than that, it would be to rebate part of our commissions... that's illegal, and we'd loose our license. In some states rebating is punishable by death by firing squad!

Most independent P&C guys can have broker fees that they set at what they want. I'm sure there are some limits, but that is also a very narrow group of agents. There are also fee-only advisers.

 

[goillini52]

Most independent P&C guys can have broker fees that they set at what they want. I'm sure there are some limits, but that is also a very narrow group of agents. There are also fee-only advisers.

Didn't know that...all I've ever done is L&H.

 

[Stephen]

Commissions are also negotiable on group health plans. Some agencies will bid a plan with 0 commission to get the supplementals.