Commercial P&C insurance agent commissions

by Rick
(St Pete FL)

Please describe this example of a Commercial P&C agent compensation:

Year 1 $35,000 plus 10% commission / new business

Year 2 $25,000 plus 25% commission / new and renewal business

Year 3 Draw against commission set at 90% of year 2 total compensation. Commission 40% New/30% renewal.

The first 2 years are a decreasing salary plus commissions but not sure I understand year 3.


Thanks
Rick

Comments for Commercial P&C insurance agent commissions

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Rating
starstarstarstarstar 		Don't leave money on the table
by: Mike McCoy

There is one thing we have noticed that P&C shops do---They are leaving money on the table.

We have been able to show P&C agents/agencies how they can not only earn more money from their existing and their new clients, but also show them by just asking their clients a few more questions, they will be able to not only help their clients, but also earn more commissions. And they have now captured more of their clients business and trust. It's a win win for all.
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starstarstarstarstar 		New to P & C
by: Anonymous

This is also true. Make sure you understand or you will spend too much time at the wrong company or wrong manager
Rating
starstarstarstarstar 		P & C commisson
by: Ted

Rick.

Sounds like you are looking at a career opportunity with a P & C shop.

You need to sit down with your manager that is recruiting you.

Tell him that you are unclear on what all this means and ask him to go through it with you so you understand what this means.

Explain to him that you are unclear how commissions work, how a draw works and how the renewals work. Ask him to draw it out on a piece of paper and don't leave until it is crystal clear in your mind. I am sure that as a new person you are concerned that if you go ask him how to works, you may be thinking, if I ask him this question, he will think I am dumb or something. Asking questions everyday is how you grow in this business, so ask as many questions as you need and if your manager can't answer them, then maybe you need to look for a new manager.


However, keep in mind that he is a manager,that is his number one priority to explain this stuff to you. Unless you ask, he can not help you.

The problem with to many managers in the insurance business, is that they think everyone knows what all this stuff is about and forget that a new person has not learned all the lingo yet, and what it means.

I see this happen to often. If any other managers read this, they need to never assume anything when it comes to training a new person.

If you can not get this answered let me know and I will see what I can do to help you.

Ted Wolk

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