TodayInsurance.net

Let’s take a look at these issues. An agent makes approximately 10%-15% on workers’ compensation and 15%-20% on property and general liability policies every year - some cut special deals with the insurance carriers for higher commission rates. Some are as high as 30%. This is a percentage of the total premium. In addition to this, the agency gets an additional contingent amount of money if the agency writes a certain volume of profitable business with an insurance company. So in fact, there is an incentive to write business with some insurance carriers over others - how much commission up front, how much back in profit sharing.

When you receive your insurance proposal does it list the commission on the premium page? Does it tell you what the agency will get if they write business with that carrier? Most agents do not give you the commission amount and agents never say what the contingent profit sharing plan is with each of their carriers. Does your agent work for you? No, they (more...)