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Hi all,

Love this site. Okay, this may be a silly question, but keep in mind that I am fairly new to the brokerage side of the business. I have been promoted to a junior account manager which is essentially a transitioning phase to prepare me for an account manager position. Problem is, I am confused with these premium allocation spreadsheets. How is one done? How are the rates determined? Can someone give me a step by step guide on how to do one, or what questions may need to be asked? I do have an example of one if that helps. I realize this question, may be broad, but ask me for specifics if need be.

Thank you :unsure:

Since you are now a Junior Account Exec., I would hope that that means that you assist an Account Executive. Your AE should be willing to lend you some help here, or at least I would hope so.

If not, then you simply need to separate the exposures (eg. property limits, gross sales, payrolls, auto, etc.) attributable to each location and/or entity. Pull your rates off your policies and do the math.

If you have umbrella premiums to allocate, then you need to add your casualty premiums for each location/entity and determine what % of this total is attributable to each location/entity. Use that % against the total umbrella premium to determine the amount to allocate to each location/entity.

Hope this helps.

You are wonderful wonderful wonderful. That's what I figured but I wasn't sure. I used the numbers my AE had in a spreadsheet and worked the math and that's the logic I came up with, but I wanted to make sure it wasn't a coincidence that it worked that way.

Yes, you helped me so much.

Oh yes, I do assist an Account Manager and AE. It would be sort of scary if I didn't. I used to be an underwriter, so I have coverage knowledge, but I do not know the broker side well. Also, I was only an underwriter for two years, straight out of college. So I am still a newbie in the insurance industry. I'll get there though. Thanks for your help.

Dawgnacious,

Nice info