Independent Agent Commissions

bigwillie · 11-12-2008, 11:43 AM

I am currently a P&C producer at a captive agency. I am pondering opening an independent agency, and wanted to know what type of commission rates do independent agents get for P&C. Currently with my captive company we get 12% on new and 10% on renewals for auto. Do independents get more, less,or the same?

InsuranceSolutions · 11-13-2008, 12:10 AM

I am in a simular situation, it is tough making a living by splitting the commissions with the captive agency owner. From what I have seen the commissions are typically 3%-5% higher than the captive agency that I work for.

iooba.com · 11-13-2008, 10:49 AM

Originally Posted by bigwillie

I am currently a P&C producer at a captive agency. I am pondering opening an independent agency, and wanted to know what type of commission rates do independent agents get for P&C. Currently with my captive company we get 12% on new and 10% on renewals for auto. Do independents get more, less,or the same?

Its different with each company. But it is usually 20% on home and 15% on auto... What states are you guys in?

InsuranceSolutions · 11-14-2008, 11:00 AM

I am in utah, and the captive that I was with before paid 10% on Auto, 20% first year homeowners, 8-10% on commerical.

Since I have made the jump the other carriers I have been appointed with are higher than that on everything but homeowners.

padthaiforlunch · 04-07-2009, 06:30 PM

Ok, let's try this again. I'm considering expanding into P&C.

Can I get 20% on homeowners without an existing P&C book?

Also, what are commissions on WC?

Thanks!

padthaiforlunch · 04-07-2009, 06:30 PM

...

padthaiforlunch · 04-08-2009, 02:06 PM

Bump

Soaringagent · 04-09-2009, 01:18 AM

You will probably need to join a wholesaler first to start building a book and gaining traction. Then you might get direct appointments...

padthaiforlunch · 04-09-2009, 11:32 AM

Originally Posted by Soaringagent

You will probably need to join a wholesaler first to start building a book and gaining traction. Then you might get direct appointments...

In other words, 10% fyc on home and auto?

What about commercial, say liability and WC?

padthaiforlunch · 04-23-2009, 04:58 PM

On Commercial Insurance....

Have a couple options on how to contract -- but none direct for now.

So.... What is commission if I were direct, and how big do I need to build my book to go direct?

I understand I will get less comm. to start, but I need to know how much of a haircut I'll be getting so I can properly negotiate.

Thanks!

PDX_Agent · 04-23-2009, 06:32 PM

Progressive 10/8
Safeco 15/12 17/14*
Unitrin 12/10
Workmen's 15/15

* Safeco offers more upfront but I have them service and xsell my book so they take 2%

saieddie · 04-29-2009, 09:33 PM

Call some reputable p and c companies in your area and see what they say. If you can convince them of your commitment to make them money, you can usually get them to appoint you. Try and get the most commission you can out of them, but make sure the ones you get appointed with have products/rates that people can will buy and can afford.

padthaiforlunch · 05-02-2009, 11:39 PM

I've got a couple P&C agencies that are willing to let me write under them. I wanted to know what direct commissions are so I can compare.

Basically, I'm being offered 10% auto and 12% home from one of the agencies. But all they do is home and auto.

If I go P&C, I would like to offer commercial. Looks like PDX answered the question. -- Thanks.

sarabellum · 05-16-2009, 02:40 AM

I have a related question:

Is it legal for a carrier to discriminate on commission payout (i.e., pay one rate to one agency owner, a different rate to a second agency owner, and a third rate to an agent placing business directly)?

Thanks,

moeasadi · 06-09-2009, 01:40 AM

Originally Posted by padthaiforlunch

I've got a couple P&C agencies that are willing to let me write under them. I wanted to know what direct commissions are so I can compare.

Basically, I'm being offered 10% auto and 12% home from one of the agencies. But all they do is home and auto.

If I go P&C, I would like to offer commercial. Looks like PDX answered the question. -- Thanks.

The agency I work with are licensed in Oregan too. and they pay good commission on commercial as well as Personal lines.Email me moe@BIFSonestop.com for details.

saieddie · 06-12-2009, 02:00 PM

Originally Posted by sarabellum

I have a related question:

Is it legal for a carrier to discriminate on commission payout (i.e., pay one rate to one agency owner, a different rate to a second agency owner, and a third rate to an agent placing business directly)?

Thanks,

You could research it on the states website: Virginia: Bureau of Insurance's Home Page
I can almost guarantee that its legal though. Insurance companies don't normally flout state laws on purpose.