regarding the creation of an Union. Isn't the Big I and PIA exactly what you are talking about. I don't know how either of them work but they should be the one forming direct relations with the Insurance co's and distributing majority of the commission to the indepedent agent.
As I said i'm not sure if they do this already, if they do great.
Producer Responsibilities
Moderators: Josh, independent guy
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insuregirl
- Insurance Journal Fan
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- Joined: Tue Dec 07, 2004 6:31 am
Sorry, I guess we did sort of get off topic...I was in more of a CSR postion at my last agency & here's how it worked there. The size of the account would sort of determine the work flow. For small commercial accounts & BOP's the producer would gather all of the info from the client and give to the CSR. The CSR would then obtain quotes. Most of these could be done through online rating systems. For larger accounts the producer & CSR would work together with the producer getting all info & determining which company to market the account through. The CSR would then do the applications and follow ups. If the policy is taken, the producer would meet with the client, get everything signed and collect the premium. The producer would get a 50% commission.
Here's where I had a big problem. The agency offered no commission to the producer for the renewals. As a CSR, this was a problem. If there was a problem with the renewal, we were unable to get any help from the producers. Who could blame them? They were no longer gettting any commission. If the account had to be rewritten through another company, the producer still didn't get any commission.
Most of the work was done by the CSRs. I never really had a problem with that. We were paid a salary. The producers worked solely on commission, no base salary at all.
The only time I had any problems with the producers was when I would take a call from a friend of theirs, quote the account,write the new business & the producer would expect commission because he knows the guy. That did not fly.
Hope this helps you!
Here's where I had a big problem. The agency offered no commission to the producer for the renewals. As a CSR, this was a problem. If there was a problem with the renewal, we were unable to get any help from the producers. Who could blame them? They were no longer gettting any commission. If the account had to be rewritten through another company, the producer still didn't get any commission.
Most of the work was done by the CSRs. I never really had a problem with that. We were paid a salary. The producers worked solely on commission, no base salary at all.
The only time I had any problems with the producers was when I would take a call from a friend of theirs, quote the account,write the new business & the producer would expect commission because he knows the guy. That did not fly.
Hope this helps you!
I think that 50% the producer in your scenario is fair. After all, there was no marketing expense on the side of the agency. Their direct overhead was your salary and the general expenses like rent, office supplies, etc...
If a good producer walked in my door and said that they could do their own marketing and they wanted 50%, I would take them up on their offer very quickly.
If a good producer walked in my door and said that they could do their own marketing and they wanted 50%, I would take them up on their offer very quickly.
Hello Mls, by the read here, not sure if you guys are discussing agency commission or the reasonablely of CSR. OK I will briefly talk about commission. I am a producer and have owned two agencies. My agreement is simple 40% for me new business and renewals. 60% goes to our agency or principles. I receive health insurance and full support from our staff. If I push I can also have a contribution made to our 401K.
I have been with this agency 4 years now. And plan on continue for some time. They pay everything from E & O to the office expensive. I have a right to buy my book of business at 50 cent on the dollar or they must buy it from me at the same. I came to this agency with almost nothing. Sounds pretty good
They believe that a producer is a producer and NOT a part time csr. You can't make money hanging out in the office. Will here's the other half I am a real live producer, I work very hard and have outstanding work ethics. OK I'm not trying to simply put a feather in my hat. But you produce or you won't last two years in this business. Get as much education as you possibly can. I'm now going after my CIC cert. I know the commercial market very will, and yes it's help me and my agency agreement. Our E & O is pushing $25,000 plus CSR's rent, insurance, work comp. I can go on and on. If you're a true hard working producer you will make money as will as the agency. You must show value to the agency if you a want sweet deal.....Yes it takes time, if your good the agency will not want to lose you. I am located in north CA and write and average of 500,000 in written premium yearly under $20,000 per policy. I also write some very large accounts. Remember its about revenue, don't let the big number worry you it relative. 
I have been with this agency 4 years now. And plan on continue for some time. They pay everything from E & O to the office expensive. I have a right to buy my book of business at 50 cent on the dollar or they must buy it from me at the same. I came to this agency with almost nothing. Sounds pretty good
They believe that a producer is a producer and NOT a part time csr. You can't make money hanging out in the office. Will here's the other half I am a real live producer, I work very hard and have outstanding work ethics. OK I'm not trying to simply put a feather in my hat. But you produce or you won't last two years in this business. Get as much education as you possibly can. I'm now going after my CIC cert. I know the commercial market very will, and yes it's help me and my agency agreement. Our E & O is pushing $25,000 plus CSR's rent, insurance, work comp. I can go on and on. If you're a true hard working producer you will make money as will as the agency. You must show value to the agency if you a want sweet deal.....Yes it takes time, if your good the agency will not want to lose you. I am located in north CA and write and average of 500,000 in written premium yearly under $20,000 per policy. I also write some very large accounts. Remember its about revenue, don't let the big number worry you it relative. The simple fact here is that there is no standard job description for a producer or a CSR, it is based on what the agency decides or what the EMPLOYEE negotiates. Notice that I said EMPLOYEE, they have a boss to report to and answer to when they do not produce or fail to perform according to the guidelines they agreed to work under. Some producers feel that they provide the paycheck for the owner and therefore deserve as much or more than the owner gets. I would suggest that you are either working for the wrong agency, or you have no concept about agency management, or (my favorite) you should start your own agency, and if you make it great, if you fail as 72% of new start ups do, you will know who was really right. You have been given an oppourtunity to work and make good money, if you don't like the terms MOVE ON. The days of 22-25% commission on P&C business are long gone, sure premiums are higher but agencies don't make anymore money today than they did 20 years ago because we make a much lower percentage than 20 years ago. I am not sure about other states but in Florida, CSR's are not allowed to be paid commission. This doesn't mean some agency don't break that rule and pay a bonus per policy, but the law is very clear, an agency can not pay commission to anyone that does not hold the same grade of license as the principal. CSR's are grossly underpaid most of the time, and producers can't live without them.
A contract is an agreement between 2 parties, if either party does not perform as agreed, the other party has rights, enforce them or leave. If an agency wil not live up to the contract, you really need to find another employer. Make sure the contract is in plain simple english and states what happens if something does not happen or performance is not met. It is really hard to get an answer to the original question, because each employee or producer is different and I would offer certain things to some based on history and experience and not to others until they prove themselves, I would also never accept as gospel what someone else says their agency guidelines are. get it in writing and negotiate changes you dont like. Just remember that an owner does not have to offer anything other than his standard plan. take it or leave it the choice is yours. I really do have problems when I hear about the dead beat owners that dont pay bills and are absentee principals, this gives employees the idea that they are not appreciated by the boss, and this is not true in most agencies.
A contract is an agreement between 2 parties, if either party does not perform as agreed, the other party has rights, enforce them or leave. If an agency wil not live up to the contract, you really need to find another employer. Make sure the contract is in plain simple english and states what happens if something does not happen or performance is not met. It is really hard to get an answer to the original question, because each employee or producer is different and I would offer certain things to some based on history and experience and not to others until they prove themselves, I would also never accept as gospel what someone else says their agency guidelines are. get it in writing and negotiate changes you dont like. Just remember that an owner does not have to offer anything other than his standard plan. take it or leave it the choice is yours. I really do have problems when I hear about the dead beat owners that dont pay bills and are absentee principals, this gives employees the idea that they are not appreciated by the boss, and this is not true in most agencies.
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cynsationalinswoman
- Insurance Journal Enthusiast
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- Joined: Fri Nov 05, 2004 11:07 pm
It is definitely a commission driven industry, and we all need to keep that fact squarely in front of us. Because the hardest part I have observed is to explain to the consumer that we are in business to make a living just like them. We are entitled to a profit margin just like any other business. Since I deal with a lot of contractors I have learned some creative ways of explaining, but still get tired of constantly being challenged on cost.
As for the original question on producer responsibility, compensation for accounts, it varies so widely......I have worked with good producers and those not so good. I truly appreciate the effort that they make to sell the accounts and have always done my best to be a supportive voice to the customer on the producers behalf.
Insurance is an industry in which anyone can pass a test which provides them with a license. That is where the challenge begins. You have to learn as you go, and it never stops. Yes, there are a lot of agency owners out there who don't adequately compensate producers or acct reps. It used to be a reasonable standard that a producer would get 40% on new biz and 30% on renewals. And same split on broker fees usually. And if you think you might have to negotiate down on fees talk to the owner BEFORE you meet w/ the client. Otherwise they might tell you that you have to take the decrease solely on your side rather than sharing in the reduction.
As for the responsibilities, it should be coordinated between acct rep & producer on consistent scheduled contact with the client. With Applied Systems or AMS, or many other mgmt automation systems it is easy to set up activities which keep everyone in the loop on servicing the client. And provide basis to justify fees. Remember that your CSR or acct rep doesn't get commission, although they have the security of a consistent income, such as it is.
Document all activities, in writing or logged on computer, that is the best selling tool possible. When a client challenges you on fees, if you are able to respond with a well documented history of service provided during a time period, what better response could you provide?
And make sure that your account rep is well regarded by the client. How many producers is each CSR supporting at your agency? If you are appreciative to your support staff, provide them with needed info in a timely manner, guess what, your accounts will come first with them.
Cross sell. Wherever you can. Don't be satisfied with just selling one line or renewing one line, your client has additional needs that should be brought to their attention. And referrals, with good service they will be yours.
Hope this helps a little, there is no universal answer to being successful as a producer, you have to carve out the best situation you can manager.
Best Regards,
As for the original question on producer responsibility, compensation for accounts, it varies so widely......I have worked with good producers and those not so good. I truly appreciate the effort that they make to sell the accounts and have always done my best to be a supportive voice to the customer on the producers behalf.
Insurance is an industry in which anyone can pass a test which provides them with a license. That is where the challenge begins. You have to learn as you go, and it never stops. Yes, there are a lot of agency owners out there who don't adequately compensate producers or acct reps. It used to be a reasonable standard that a producer would get 40% on new biz and 30% on renewals. And same split on broker fees usually. And if you think you might have to negotiate down on fees talk to the owner BEFORE you meet w/ the client. Otherwise they might tell you that you have to take the decrease solely on your side rather than sharing in the reduction.
As for the responsibilities, it should be coordinated between acct rep & producer on consistent scheduled contact with the client. With Applied Systems or AMS, or many other mgmt automation systems it is easy to set up activities which keep everyone in the loop on servicing the client. And provide basis to justify fees. Remember that your CSR or acct rep doesn't get commission, although they have the security of a consistent income, such as it is.
Document all activities, in writing or logged on computer, that is the best selling tool possible. When a client challenges you on fees, if you are able to respond with a well documented history of service provided during a time period, what better response could you provide?
And make sure that your account rep is well regarded by the client. How many producers is each CSR supporting at your agency? If you are appreciative to your support staff, provide them with needed info in a timely manner, guess what, your accounts will come first with them.
Cross sell. Wherever you can. Don't be satisfied with just selling one line or renewing one line, your client has additional needs that should be brought to their attention. And referrals, with good service they will be yours.
Hope this helps a little, there is no universal answer to being successful as a producer, you have to carve out the best situation you can manager.
Best Regards,
[FONT=Optima]CynsationalInsWoman[FONT=Optima]