Insurance rates

I just got off the phone with one of my account managers. Long story short - the renewal on a building we insure in San Francisco went from roughly $4,500 to about $17,600. We have plenty of appointments, and shopped the market aggressively.

Apparently the client just cut a check for the whole amount.
On p&C when the rates increase do you get paid based on the new rate? Or the original rate?
 
On p&C when the rates increase do you get paid based on the new rate? Or the original rate?
Unless a carrier has implemented a recent comp change impacting all premium the agent always gets paid a commission rate on the full premium of the policy. Renewal commissions lower than new commissions. Plus, unlike Life where there is really only a backout when a life policy cancels, PC policies have accounting transactions adding & subtracting every single month as clients make changes adding or decreasing policy premiums like adding cars, adding buildings, deleting coverages, reinstating or canceling a policy. This hard market will increase PC agencies book sizes substantially & likely raise compensation substantially..............................assuming no major comp rate reductions or carriers leaving the market. Plus, agencies will need more labor to handle all the rate complaints from clients & shopping for a new market & lastly to field all the new incoming client calls upset at their current agent/agency from rate increases. Hard markets can be both the best & worst of times, but overwhelming many times too.
 
No thank you. I lost my license 40 years ago in Hazard County Georgia & can never get it back. Sure wish I would have listened to my Grandpa Jesse instead of me & my brother getting in so much trouble racing my car & running from the Sherrif
Not a problem, you are very welcome!
 

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