Seeking Commission Splits with an IA

[SecondCareer]

I have worked in the financial industry for 20 years and am looking to transition into the insurance field. I worked part time at a high producing SF office for over year and was successful. I ultimately turned down an appointment with them. I am licensed in P & C and life &health. I plan to do primarily personal P & C, but also some commercial as well. I am looking to work for an IA part time, 3-7ish, while keeping my current job. I will ask for no pay, but I want to be able to keep my book that I generate when I leave. Two questions, is keeping my book possible and what commission structure should I be seeking.

 

[Graysway Inc.]

Where are you located

 

[SecondCareer]

Chicagoland area.

 

[todd02]

Just being honest. Why would an agent even entertain this idea? What's in it for them? They take the risk of E&O and appointments you write under and then you keep all the actual benefit of the book? Good luck finding that deal. I could see a buyout option but you're much better off just getting Non standard appointments yourself and selling progressive.

 

[SecondCareer]

I would think an agent would entertain the idea because I have an extremely large family, social, professional and volunteer network. I have learned to sell and prospect insurance previously without ever touching my own network. Also, I have a minimum of three moderate sized manufacturing companies that will switch to me and will show me their current coverages. That is all found money for the agent taking me on without much work on their end. I would be negotiable on new commissions and residuals as long as I can keep my book. I don't need the money now, but would like a book when I go out on my own. I am new, so this may be unattainable, so that is why I am inquiring. If keeping my own book is not realistic, what kind of buyout should I look for?

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And I did think about just going on my own with progressive and a few non standards, but if I do want to prospect my personal network, I couldn't in good faith go after them if I don't have the best products to offer. Also, I would like to have a little mentoring on the commercial side because there are more nuances and it is an area I would like to concentrate in.

 

[todd02]

I'll defer to Indys on this one. There's no benefit for me if I don't retain the ownership rights. If you ever left it completely effects the business. Revenue, CSRs needed to service, bonus structures based on profitability and more. Hey if you don't ask it's already a no so I'd keep trying if I were you.

 

[b61mack]

just join a cluster

 

[1manshow]

at best...maybe a 20% cut of renewal business...based on loss ratio and retention

otherwise the house retains all the risk and gives away too much of the reward, as stated previously

 

[insurance1822]

Yeah, this would make no sense what so ever for any IA. In addition, I think you're underestimating "taking your book." If you work under an IA with a bunch of companies, your business is going to be spread out.

Those carriers would never entertain appointing you unless your books were big enough w/ each carrier (which most likely won't be the case unless you're writing alot of business for quite some time.) Many preferred carriers aren't even open to new appointments anyway.

Your "mid size manufacturers" would be written up by commercial lines carriers who wouldn't consider your own appointment unless you get to 1MM in 2-3 years etc.

In theory, I get what you're thinking. In practice, it's a whole different story.

 

[Mike Siegal]

I have worked in the financial industry for 20 years and am looking to transition into the insurance field. I worked part time at a high producing SF office for over year and was successful. I ultimately turned down an appointment with them. I am licensed in P & C and life &health. I plan to do primarily personal P & C, but also some commercial as well. I am looking to work for an IA part time, 3-7ish, while keeping my current job. I will ask for no pay, but I want to be able to keep my book that I generate when I leave. Two questions, is keeping my book possible and what commission structure should I be seeking.

If i may, What prompts you to pursue PC? Is is the money? or perceived easiest of the biz? Let's state there, and "I'M SURE" some of the guys here can help you better.