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
Was this article valuable?
Here are more articles you may enjoy.
AIG to Acquire Renewal Rights of Everest’s Retail Commercial Business Worth $2B 
World’s Largest Retirement Community Taps Muni Market to Help Build More Homes 
New York Hospital Insurer Files for Bankruptcy, Citing Child Sex Abuse Claims 
Alaska Airlines Vows IT Upgrades After Outage Forces 400 Flight Cancellations From This Issue
