More than three-quarters (77%) of wholesalers and brokers said that firm salaries increased in 2005 compared to 2004. Nearly half (49%) of all E & S firms answering Insurance Journal’s survey reported paying their producers a combination of salary plus commission.
The majority of firms (80%) reported that commission rates stayed right where they were in 2005 compared to 2004.
Most firms (50%) received 16% to 20% for new policy commission from insurers in 2005 for small commercial, while 20% of those who responded to the survey receive 11% to 15% in commission. A third (33%) said they received 11% to 15% in commission for new large commercial, while another 31% receive 16% to 20% in commission. On average, renewal policy commission rates remained the same.
The majority of firms paid retail agents 6% to 10% commission for new and renewal commercial policies in 2005, both small commercial and large commercial.
Nearly all (92%) of the E&S wholesale firms and brokerages have plans to acquire another firm in 2006, which could turn out to be a challenge since only 13% plan to sell.
Topics Agencies Excess Surplus
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