My comments won’t win me any popularity contests but, frankly, Boys and Girls, we all sound pretty greedy, especially Umpiire.
I’ve managed to make a very, very good living, going on three decades now, and I’ve done it all on commission income. I’ve built a great agency, happilly selling and servicing the policyholders in my community.
When I offer the benefit of my advice, I am compensated. I get a commission check the first of the month. Servicing a policy is part of the job. I don’t deserve an extra fee everytime I answer the phone, give advice, offer helpful service. I do get paid!
This broker fee issue is dirty and gives us all a bad name. There are too many agents abusing the practice, charging hundred’s of dollars to do what? Issue a policy? Come on…You know why you charge ’em? ‘Cause you can! If the DOI ever puts a stop to broker fees, lots of honest agents will be applauding from the sidelines.
Sincerely,
Lady Agent
PS…Sure am glad these letters are anonymous. Otherwise, I’d have to get a body guard or, heaven help me, keep my opinion to myself.
I don’t get it. My CPA charges me fee income for what he does. My lawyer charges me fee income for what he does (and he has a bunch of different rates, too). If my insurance agent is a financial professional, why does he not also charge me fee income for what he does?
The way to go forward is to leave commission, and bill fees for what you’re worth to the transaction. Realtors need to get real in the same way.
The insurance advisor that spends the same about of time with a client on their homeowners ($1200) that they also spend placing their business renewal ($42,000), should get paid THE SAME FOR EACH TASK. Yet on commission, we encourage a lousy job on the HO policy, and get a windfall “make up” income on the business package.
Insurers have no darned business deciding the income of producers (setting a commission). But they have every right to reward good producers for bringing them good business (contingency or profit commissions). And insurers that have to “babysit” a weak producer should not be paying the same amount as they do for a high quality power producer that gets it right every time.
Finally… every insured should be able to see the separation of costs between what the insurer charges, and what the advisor charges. Then a simple check box whether any contingency income exists or not (forget the value of it… that cannot be determined “by insured” — so leave the amount out of it). Those insureds should also be EXPECTED TO PAY FOR ADVICE… not just placement. If you get a 2nd opinion from a lawyer, doctor, CPA — ANYWHERE — you have to pay for it. Not so with getting 8 different insurance advisors to quote your renewal… 7 of them worked for free. Dumb. Insurance advisors must know that their advice and counsel is actually their value, and it should be billed for each time. You can offer a “free rate quote” once in a while… but if you provide professional advice that is worthwhile, it should be invoiced and paid for by the client. That’s what happens when you really get professional advice.
Norman Goldman will work for free?(my butt), im sure theres something in it for him. Hell! maybe we should all work for free. Absolutely ridiculous. :(
Insurance agents and their agencies are sales organizations at the end of the day. There is no way to remove the comission and fees. Could you imagine trying to get clients to return phone calls or discuss endorsements etc, if they knew every minute spent on their insurance would generate an invoice.
Not so fast. I agree with you Lady Agent. I spent many years as a broker and depending on fees and have completely changed to an agency-style of business. I have become less dependant on fee income and to be quite honest, the consumer is getting smarter and shopping for an agency who is NOT abusing fees. I applaud your agency. Every once in a while I broker some business but it is becoming rare. It is possible to run an agency without fees but you have to become smarter with your expenditures. This market is changing and agents stand in a good position compared to brokers who depend on fees. I understand both ends of the argument but I dont believe in the discontinuance of broker fees – especially for commercial brokers. They really work for there pay (most of them)
It is easy to say that fees are not needed when you have been in the business for a long time and have a large book to back you, but when you are a new agent or you sell policies in poor or undeserved areas fees may keep you in business, and allow you to compete with larger agencies and the Geicos of the world.
Wrong…you can get the same preferred markets thru Superior Access, Abram Interstate and compete with ALL of the preferred markets. You just need to know the available markets and you can become less dependent on the fees. I know…I was in your situation at one time in downtown LA
In the old days an agent was someone who was able to bind coverage on behalf of the insurance company. End of story. Everyone else was construed as a broker.
It is quite evident that Mr. Goldman has never had to worry about making a profit for someone other than himself. To use his logic of letting anyone be an agent for a company without some due diligence is like going to a bank and not having to qualify for a loan, just give them the money.
We need to keep the definition of agent versus broker very simple. Mr. Goldman’s statement “I just want to make a legal living” probably would give us a 48 page document.
I have been around the insurance industry for over 30 years and I have seen good agents and bad agents. Other businesses post a sign on their premises “We have the right to refuse your business” Mr. Goldman needs to understand that this is America, which believes in a free society, not some socialistic or communistic state.
He’s a lawyer looking for some ink. It helps his business to says these things. Once again, a self serving lawyer crapping on our business. How would he like a cap on his lawyer fees and then to tell him to go make a “legal” living without them or with a cap on them….he would be bit__in for years. Dooouucchbag
Maybe this will prompt consumers to start reading their policy……that’ll be a switch! C’mon, people! My teenage daughter can read it……………..
My comments won’t win me any popularity contests but, frankly, Boys and Girls, we all sound pretty greedy, especially Umpiire.
I’ve managed to make a very, very good living, going on three decades now, and I’ve done it all on commission income. I’ve built a great agency, happilly selling and servicing the policyholders in my community.
When I offer the benefit of my advice, I am compensated. I get a commission check the first of the month. Servicing a policy is part of the job. I don’t deserve an extra fee everytime I answer the phone, give advice, offer helpful service. I do get paid!
This broker fee issue is dirty and gives us all a bad name. There are too many agents abusing the practice, charging hundred’s of dollars to do what? Issue a policy? Come on…You know why you charge ’em? ‘Cause you can! If the DOI ever puts a stop to broker fees, lots of honest agents will be applauding from the sidelines.
Sincerely,
Lady Agent
PS…Sure am glad these letters are anonymous. Otherwise, I’d have to get a body guard or, heaven help me, keep my opinion to myself.
I don’t get it. My CPA charges me fee income for what he does. My lawyer charges me fee income for what he does (and he has a bunch of different rates, too). If my insurance agent is a financial professional, why does he not also charge me fee income for what he does?
The way to go forward is to leave commission, and bill fees for what you’re worth to the transaction. Realtors need to get real in the same way.
The insurance advisor that spends the same about of time with a client on their homeowners ($1200) that they also spend placing their business renewal ($42,000), should get paid THE SAME FOR EACH TASK. Yet on commission, we encourage a lousy job on the HO policy, and get a windfall “make up” income on the business package.
Insurers have no darned business deciding the income of producers (setting a commission). But they have every right to reward good producers for bringing them good business (contingency or profit commissions). And insurers that have to “babysit” a weak producer should not be paying the same amount as they do for a high quality power producer that gets it right every time.
Finally… every insured should be able to see the separation of costs between what the insurer charges, and what the advisor charges. Then a simple check box whether any contingency income exists or not (forget the value of it… that cannot be determined “by insured” — so leave the amount out of it). Those insureds should also be EXPECTED TO PAY FOR ADVICE… not just placement. If you get a 2nd opinion from a lawyer, doctor, CPA — ANYWHERE — you have to pay for it. Not so with getting 8 different insurance advisors to quote your renewal… 7 of them worked for free. Dumb. Insurance advisors must know that their advice and counsel is actually their value, and it should be billed for each time. You can offer a “free rate quote” once in a while… but if you provide professional advice that is worthwhile, it should be invoiced and paid for by the client. That’s what happens when you really get professional advice.
Umpiire, I couldn’t have said it better myself!!!!!!!!
I agree umpiire, after all we should compensated for our advice as we can also be held accountable for it, right.
Norman Goldman will work for free?(my butt), im sure theres something in it for him. Hell! maybe we should all work for free. Absolutely ridiculous. :(
When the government gets involved the consumer ends up paying more.
Insurance agents and their agencies are sales organizations at the end of the day. There is no way to remove the comission and fees. Could you imagine trying to get clients to return phone calls or discuss endorsements etc, if they knew every minute spent on their insurance would generate an invoice.
Not so fast. I agree with you Lady Agent. I spent many years as a broker and depending on fees and have completely changed to an agency-style of business. I have become less dependant on fee income and to be quite honest, the consumer is getting smarter and shopping for an agency who is NOT abusing fees. I applaud your agency. Every once in a while I broker some business but it is becoming rare. It is possible to run an agency without fees but you have to become smarter with your expenditures. This market is changing and agents stand in a good position compared to brokers who depend on fees. I understand both ends of the argument but I dont believe in the discontinuance of broker fees – especially for commercial brokers. They really work for there pay (most of them)
It is easy to say that fees are not needed when you have been in the business for a long time and have a large book to back you, but when you are a new agent or you sell policies in poor or undeserved areas fees may keep you in business, and allow you to compete with larger agencies and the Geicos of the world.
Wrong…you can get the same preferred markets thru Superior Access, Abram Interstate and compete with ALL of the preferred markets. You just need to know the available markets and you can become less dependent on the fees. I know…I was in your situation at one time in downtown LA
In the old days an agent was someone who was able to bind coverage on behalf of the insurance company. End of story. Everyone else was construed as a broker.
It is quite evident that Mr. Goldman has never had to worry about making a profit for someone other than himself. To use his logic of letting anyone be an agent for a company without some due diligence is like going to a bank and not having to qualify for a loan, just give them the money.
We need to keep the definition of agent versus broker very simple. Mr. Goldman’s statement “I just want to make a legal living” probably would give us a 48 page document.
I have been around the insurance industry for over 30 years and I have seen good agents and bad agents. Other businesses post a sign on their premises “We have the right to refuse your business” Mr. Goldman needs to understand that this is America, which believes in a free society, not some socialistic or communistic state.
He’s a lawyer looking for some ink. It helps his business to says these things. Once again, a self serving lawyer crapping on our business. How would he like a cap on his lawyer fees and then to tell him to go make a “legal” living without them or with a cap on them….he would be bit__in for years. Dooouucchbag