Non Standard Commission?

InsuranceBrah

Expert
40
So i just recieved my first statement through the p&c agency i started writing through. I knew it would be a 50/50 split. But now im wondering what the heck these guys are getting paid.

Because i was expecting about $60 on a policy in question. Thats about 6%. But on the statement they are showing $60 with a 50% split thus leaving me with only $30. Thats half of my expectations.

Am i to believe that the agency is only recieving 6% from proggressive?
 
Progressive writes a 6 month policy & they only get paid on the 6 month premium. So you either banked on the annual premium OR...they're only getting 6%.
 
Depends...Progressive NORMALLY has a 10% commission, but that can vary a bit. I've heard of them cutting commission below 10% if an agency doesn't produce over a period of time. Also, by what means the agency is appointed with Progressive makes a difference. If the agency sells progressive via a cluster or network agreement, they are getting a cut taken out of commission.

Still, 6% sounds pretty low.
 
Lets just get clear.

6m=$600 in WP
Comm=10% (via cluster 70%-90% of that 10%)

100% comp at 10% is $60. You got paid $30 or 50% of the 10%. All good right?



Remember NS auto often pays on an As earned basis. (Not Progressive)

Also is your agency charging you for MVR chargebacks? That could eat you up real fast.
 
Depends...Progressive NORMALLY has a 10% commission, but that can vary a bit. I've heard of them cutting commission below 10% if an agency doesn't produce over a period of time. Also, by what means the agency is appointed with Progressive makes a difference. If the agency sells progressive via a cluster or network agreement, they are getting a cut taken out of commission.

Still, 6% sounds pretty low.

Interesting. Guess you wanna work w high volume co. 6%....you better be writing 1 policy an hr.
 
I've always been paid 10% with Progressive. Almost every NS will pay on a per-earned basis. That's when we have to charge AF to balance out a bit.
 
I am in IL and have a stand alone Progressive contract. I only receive 10% comission so your 6% is more than I would give you on the same deal.

As others have said, non standard usually pays less and also has much lower retention with much more service work.

Good Luck, don't give up and keep writing new business
 
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