When producers leave an agency they can and do take accounts with them. They should be compensated for accounts they keep with an agency. Not acknowledging this is foolish.
Yeah the big box stores… I mean agencies are going to let that happen.
Lets see, I worked for a small agency with a nice deffered comp package. We got bought. Renewal Comm went from 30% to 25% and then a new director came in and had the great idea of cutting it to 20%. How is that for moral? Problem here…. principles are not reading this.
Why is this newsworthy when most segments of the economy are suffering the same earnings constraints? I’m all for rewarding the sales force to find and retain PROFITABLE BUSINESS. “If” the business generates high loss ratios, agency earnings should be adversely affected.
“Producers” if you want get a raise go out and get it. If you want to own your book, put your money that you have saved for years on the line, start an agency. Be prepared to wait 3 years or longer to make any real profit. Be prepared to be a pychatrist to your employees who get divorced, lose a family member and loan them money when they really need it, and they will. Being a principal of an agency is not as an easy task as many think.
As an agency owner / manager / producer and secretary for ten years (in a small agency, you do it all), I have seen commissions decrease and rates cut for far too long to satisfy stockholders with great PIF’s at years end. Profitability bonuses have all but vanished as has profitability to increase the PIF’s. Growth incentives are all but gone. I’m not whining here, just stating facts.
Prior to owning an agency, I was a captive for 10 years. It was imbedded in my brain that is IS NOT all about price, it’s all about relationships. Those carriers have now made it ALL ABOUT PRICE. The economy stinks and we are all doing more for less. At the same time technology allows us to do more for less! For those employees who complain, I suggest you take a stab at buying and managing your own agency. It can be rewarding if done correctly. There are plenty for sale right now. For those owners who complain, it is what it is! Deal with it. I work 50-60 hours a week because I have to. I can’t afford to hire additional staff. I have a tough time keeping current employees happy.
That said, I still enjoy what I do. It just isn’t as profitable or as enjoyable as it once was. Then, what industry is? With all its change and frustration, I still love the insurance industry.
When producers leave an agency they can and do take accounts with them. They should be compensated for accounts they keep with an agency. Not acknowledging this is foolish.
What a hoot! And NO Rosie!
http://www.insurancejournal.com/news/national/2010/05/18/109967.htm
Yeah the big box stores… I mean agencies are going to let that happen.
Lets see, I worked for a small agency with a nice deffered comp package. We got bought. Renewal Comm went from 30% to 25% and then a new director came in and had the great idea of cutting it to 20%. How is that for moral? Problem here…. principles are not reading this.
Why is this newsworthy when most segments of the economy are suffering the same earnings constraints? I’m all for rewarding the sales force to find and retain PROFITABLE BUSINESS. “If” the business generates high loss ratios, agency earnings should be adversely affected.
“Producers” if you want get a raise go out and get it. If you want to own your book, put your money that you have saved for years on the line, start an agency. Be prepared to wait 3 years or longer to make any real profit. Be prepared to be a pychatrist to your employees who get divorced, lose a family member and loan them money when they really need it, and they will. Being a principal of an agency is not as an easy task as many think.
As an agency owner / manager / producer and secretary for ten years (in a small agency, you do it all), I have seen commissions decrease and rates cut for far too long to satisfy stockholders with great PIF’s at years end. Profitability bonuses have all but vanished as has profitability to increase the PIF’s. Growth incentives are all but gone. I’m not whining here, just stating facts.
Prior to owning an agency, I was a captive for 10 years. It was imbedded in my brain that is IS NOT all about price, it’s all about relationships. Those carriers have now made it ALL ABOUT PRICE. The economy stinks and we are all doing more for less. At the same time technology allows us to do more for less! For those employees who complain, I suggest you take a stab at buying and managing your own agency. It can be rewarding if done correctly. There are plenty for sale right now. For those owners who complain, it is what it is! Deal with it. I work 50-60 hours a week because I have to. I can’t afford to hire additional staff. I have a tough time keeping current employees happy.
That said, I still enjoy what I do. It just isn’t as profitable or as enjoyable as it once was. Then, what industry is? With all its change and frustration, I still love the insurance industry.