Travelers Slashing Commission 15 to 12

[insurance1822]

Thoughts?

Me? Not writing them unless I have NO OTHER option. God help us all if they take this action & don't face negative outcomes. Everybody else will follow..

 

[nyc2phi]

Thoughts?

Me? Not writing them unless I have NO OTHER option. God help us all if they take this action & don't face negative outcomes. Everybody else will follow..

Both on home and auto?

I have two carriers, both pay 10 on auto and one pays 15 on home so I'm use to that low of a pay out.

 

[insurance1822]

Aren't you an Erie agent? they only pay 10% on auto?!?!?!

With national/local over rides we're still getting 18% w/ Travelers + profit share but it's still 3 points less from the 21% we were getting.

Jeez...our non standards are paying 10-14%....

Can you confirm? does erie pay any expenses? my god how do you survive on 10%?

 

[NCSU INS GUY]

Erie pays 15% new and only 10% renewal, it sucks a little, but when you look at the whole picture it's fine. I survive because 10% of double or triple the amount of business I'm able to win/write quoting Erie versus if I was using travelers(at least in NC, travelers is a borderline joke in this state on preferred business packages). My retention with erie is higher and their bonuses if you're profitable are very lucrative.

I wouldn't trade Erie for Travelers if Erie was 10% across the board and Travelers was 20% across the board.

 

[nyc2phi]

Erie pays 15% new and only 10% renewal, it sucks a little, but when you look at the whole picture it's fine. I survive because 10% of double or triple the amount of business I'm able to win/write quoting Erie versus if I was using travelers(at least in NC, travelers is a borderline joke in this state on preferred business packages). My retention with erie is higher and their bonuses if you're profitable are very lucrative.

I wouldn't trade Erie for Travelers if Erie was 10% across the board and Travelers was 20% across the board.

What he said...

We get marketing expenses reimbursed up to 50% which helps as well.

I'm sure the lower payout helps with their expense ratio to keep them profitable. I could see other carriers not only travelers following this trend especially with the poor combined ratios we've been seeing with these companies the past few years

 

[insurance1822]

Erie pays 15% new and only 10% renewal, it sucks a little, but when you look at the whole picture it's fine. I survive because 10% of double or triple the amount of business I'm able to win/write quoting Erie versus if I was using travelers(at least in NC, travelers is a borderline joke in this state on preferred business packages). My retention with erie is higher and their bonuses if you're profitable are very lucrative.

I wouldn't trade Erie for Travelers if Erie was 10% across the board and Travelers was 20% across the board.

Not trading Erie for Travelers in the aforementioned scenario could be argued either way...

...However...Having Travelers, Safeco, Donegal, Encompass, Kemper, Progressive, Harleysville, Tower, Guard, Amtrust, Metlife, Liberty Mutual, MMA, CNA, American Modern, Ohio Casualty, Zurich, GMAC, Hartford, Grange, Allied, Allstate, Foremost, Infinity and even more I can't write ALL PAYING 2X YOUR ERIE COMMISSION..

Well...yeah good luck buddy.

 

[NCSU INS GUY]

Unless your massive in size, you aren't bonusing on a huge number of those companies. I would take Erie on a preferred risk (again in my state) over any of your companies.

Also, Erie isn't captive. I represent Harleysville, Safeco, Allied, Progressive, National General, ASI, Foremost, Main street america (National grange), Philadelphia and AmTrust as well.

I'm not trying to get in a pissing match, but in my state Erie is the best on ultra preferred personal lines. Most of the truly preferred accounts I write I win with Erie in a situation where none of my other above companies would have won the account (obviously there are exceptions to this).

Erie also beats Travelers on commercial when the items fit their appetite 9 out of 10 times. Oh and I get 20% new and renewal with Erie commercial.

If you're growing in your market with your carriers that's all that matters. One market to another can swing everything I'm saying drastically.

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Erie is also the best in claims and customer satisfaction of any company I've ever worked with. Their HE-7 home product is a huge selling feature in my market. Their exchange auto comes with first accident forgiveness. Honestly it's all preference, but I just like selling what they offer.

 

[nyc2phi]

Unless your massive in size, you aren't bonusing on a huge number of those companies. I would take Erie on a preferred risk (again in my state) over any of your companies.

Also, Erie isn't captive. I represent Harleysville, Safeco, Allied, Progressive, National General, ASI, Foremost, Main street america (National grange), Philadelphia and AmTrust as well.

I'm not trying to get in a pissing match, but in my state Erie is the best on ultra preferred personal lines. Most of the truly preferred accounts I write I win with Erie in a situation where none of my other above companies would have won the account (obviously there are exceptions to this).

Erie also beats Travelers on commercial when the items fit their appetite 9 out of 10 times. Oh and I get 20% new and renewal with Erie commercial.

If you're growing in your market with your carriers that's all that matters. One market to another can swing everything I'm saying drastically.

Same goes for his state as well which is why they have the second highest market share on auto there.

 

[Blastr17]

If the new product is competitive who cares, if it sucks then yes they will lose a ton of business

 

[wow314]

Erie is 10 on auto new and renewal and commercial auto the same. Home is 15%. You may want to look again.