Many other companies will follow on that same line if the agents do not bolt from Travelers. To many other companies would give a bonus for that business.
Progressive had to have an addendum contract to give back some of their cut in commissions.
![Wink :wink:](./images/smilies/icon_wink.gif)
Moderators: Josh, independent guy
Absolutely agree, same thing we do in our agency. Why take a pay cut if you have to?ins-atty wrote:It's not an 8% cut, it's actually a 20% cut: 15% x .80 = 12%. Despite the cut, many agents will think it's great for awhile. Travelers will be highly competitive and get us to write our new business and force us to move many of our existing customers there with their new, lower rates. Then they'll go up.
Don't fall for it. Our philosophy is to write with companies offering cut rate commissions (i.e. Progressive, Foremost, and now Travelers) only when we absolutely have to.
It is not just a matter of giving up money if you don't have to. These given up commissions are essential for a healthy agency system, even if the companies don't realize it. This is not just profit for the agent's pocket, but necessary to finance growth of the agency through hiring and training new producers, buying other agencies, and updating automation.Pathwayinsurance wrote:Absolutely agree, same thing we do in our agency. Why take a pay cut if you have to?ins-atty wrote:It's not an 8% cut, it's actually a 20% cut: 15% x .80 = 12%. Despite the cut, many agents will think it's great for awhile. Travelers will be highly competitive and get us to write our new business and force us to move many of our existing customers there with their new, lower rates. Then they'll go up.
Don't fall for it. Our philosophy is to write with companies offering cut rate commissions (i.e. Progressive, Foremost, and now Travelers) only when we absolutely have to.