Commission Erosion

[shawnmwalker]

Ins1822 has started a great thread that got significantly side tracked regarding the Erosion of commissions. He specifically mentioned Travelers new auto product; but another national carrier (One of the largest) is making another commission move.

The reality of "Commission Erosion" is too real.

As Members on the other thread commented, "10% being better than 0%", we do have to ask ourselves how far we will let commission levels Erode before we all stand up together.

If we keep accepting the rhetoric that Ins is a commodity and only price gets a product sold, and we keep telling that to companies, then companies will listen and lower their expense ratio by dropping commissions and we are bound for 5% before we know it.

How do you push back against Commission Erosion?

Are you one of the old school Mogressive agents that sold the best priced, lowest commission product, that caused this whole mess a few decades ago? What would you tell those agents now? How are Agents any different today?

Where is your commission line in the sand?

 

[todd02]

who is the other, why you withholding info

I think he is mentioning allstates commission drop?

 

[Arnage150]

Name another industry that pays 20% commission on new and renewal business (for potentially decades)?

Stock Brokers - No
Real Estate - No
Financial Services - No
Health Insurance - No
Cell phone contracts: Maybe

I always thought we got paid more than other industries because it was a thankless business. Sadly I think you will see this more and more as the industry becomes globalized.

Where do you draw the line? I think think they have you by the balls. If they are the lowest priced company in your office you will sell it. Maybe in larger agencies that have many options it will make a marginal impact but probably not enough to impact Travelers master plan. Maybe if Allstate sees a lot of agencies for sale or has trouble signing up new agents it will impact their plan but again I doubt it will. There will always be another sucker in line.
Personally speaking I represent Travelers and their new product isn't all that great in my state. I love selling a competitors auto policy that is priced less then Travelers and receive my 15%.

 

[oicu812nbama]

where is your line in the sand sean? weren't you telling me to stay loyal to one carrier the other day? or were you simply spamming the forum?