Ask Your Peers  Best Contracting Levels 

Being a newer agent I am interested in finding the best contracting levels. Would anyone be able to give me some examples of what
you have to offer?

Not exactly sure what you're asking. They have contrcators levels at Home Depot.

Thanks Steve I appreciate your humor! I am looking to see what carriers/wholesalers provide the best commission.

Harley, I cannot speak to commissions, but I can speak to marketing support. We work with multiple Program Administrators who serve non-competing industries. We created CAST (Customized Agency Sales Tools) as a way for these Program Administrators to provide industry specific sales materials that producers could add their contact info to. Check it out at http://www.vertibrands.com/CAST. Create a profile for yourself. Pick an industry. And your profile info will appear on the sales literature. Then save as a PDF and attach to emails as part of your new business marketing efforts. We have 7,500 agents registered in our system from multiple Program Administrators. We have found that agents and brokers literally create single industry contacts within their agencies as a sort of "practice leader" marketing advantage. But I urge you to check it out as it helps newer agents create a niche and book of business for themselves. All are quality Program Administrators as well. Good Luck!

Harley,

That's an open ended question that unfortunately has no simple answer.

What levels you contract with wholesalers and carriers depend on many factors, here are some -
1. Is the book/premium Life/Health or P&C. Then you need to further qualify - is it Personal Lines, Commercial Lines, Standard, Non Standard? If on the life side, is it fixed products or variable, or group or individual health?
2. How big is the book in terms of revenue - so what's you and/or your agency's track record?
3. How much premium volume can or will you commit to?
4. Who would the prospective new carrier/wholesaler by competing with (in terms of what your current levels are)?

Finally, as a 'newer agent' - if you don't have a track record, you would be best suited matching your preferred area of expertise with certain wholesalers (specialty lines), carriers (standard) and contact them accordingly. Keep in mind, many newer agents will not be able to contract directly and instead 'pool' in with other agents (affinity groups), or other field marketing organizations.

I hope that helps.

Happy Hunting. :-)

Hi Harley,

I work with a wholesaler, (IPMG, LLC) we do not have a premium volume commitment for our agents, I don't know of a wholesaler who does. The commission we pay our agents all depends on how much we are paid. We split everything 50/50. The majority of our carriers pay us 20% so we pay our agents 10%. We write on non-admitted paper in Missouri & Illinois.

We also have a brokerage services division which gives us access to standard carriers like Chubb and Travelers. These carrier's will often pay us more in the neighborhood of 15%, which we then pay you 7.5% or 10% depending on size of premium. With these carrier's we can write in all states.

Being a "newer agent" we are most definitely the type of agency you'd like to have in your back pocket.

If I can help you please contact me: [email protected].

Thank you,
April
www.IPMG.com

Thank you April, very useful information indeed!

I am sure Harley and others will find it insightful.

-Adrian

April, that sounds interesting. Can you share more about how you're agency works?

You're welcome Adrian, glad to hear you found my info useful.

Michael,
As a wholesaler our clients are the retail/independent agent. Our agency holds contracts with many different Ins companies and we make the premium commitments with our Ins companies for various lines of business.

Our retailers submit their applications to us and we underwrite and determine which of our markets/Ins Companies are best fit and price. We underwrite some business ourselves and others we have to send to our Ins Co underwriters for approval. After underwriting, rating we will provide a quote to our retailer, they sell it to the applicant and we all make money and call it a day.

We write E&S business in MO & IL only and have standard market contracts for All states. I'm sure there is a wholesaler in your area. Every independent agent should have a relationship with an MGA/wholesaler.

Have a great day!
April

Yes! Thank you for all of the information April! I really appreciate it!

Thank you kindly April.

I'd like to connect with you to discuss this further?