by bkay76m » Tue Sep 20, 2011 04:18 pm
The new Agent referenced above sold just life insurance products part-time for a period of 5 years. The agent now accepts an offer to begin selling property and casualty (P&C) insurance having no experience in P&C. What level of commission (%) should the Agent expect?
Posted: Wed Sep 21, 2011 09:19 am Post Subject:
Well I guess it depends on the company you work for.
But as a property and casualty insurance agent you may expect a 12-15% commission, while as a life insurance agent you may get paid as high as up to 100% commission.
Posted: Wed Sep 21, 2011 02:25 pm Post Subject:
/Agent commissions depend on whether you are a direct writing agent or writing through an agency. As a direct writing agent, you will be paid 15%-25% on most new business, 3%-10% on renewals.
If working through an agency, your percentage of the commission will be established by contract with the agency principal. If you need to be trained, expect your commission to be on a "split". 60% to you, 40% to the agency would be the lowest you might accept (60% of 15% is only 9% of the net commissionable premium -- a $500 auto premium on a new policy to the customer might be a $300 net premium to the agent, so 9% of $300 is a mere $27). An experienced agent would command 90% or more of the agency commission.
You would expect to receive renewals as long as you stay with the agency, but leaving the agency would probably mean leaving those renewals behind, and starting all over.
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