Ask the Allstate agents if they expect their compensation to go up in 2012. As an Independent, we see the companies tweak their Contingency arrangement all the time. If a company does not want to pay a contingent commission, the agent is not going to get it. All they have to do is increase reserves on a claim or two and the Loss Ratio is just a point or two too high to qualify. It works like a charm. I speak from personal experience.
Maybe with the contingency we might be close to making what we did last year since so many companies are going out of business and the ones left are paying lower commissions… not to mention the decline in the economy and the housing market are still affecting us all.
Should be an interesting year
Beware the interpretation of polls & studies constructed to be self serving.
Ask the Allstate agents if they expect their compensation to go up in 2012. As an Independent, we see the companies tweak their Contingency arrangement all the time. If a company does not want to pay a contingent commission, the agent is not going to get it. All they have to do is increase reserves on a claim or two and the Loss Ratio is just a point or two too high to qualify. It works like a charm. I speak from personal experience.
Maybe with the contingency we might be close to making what we did last year since so many companies are going out of business and the ones left are paying lower commissions… not to mention the decline in the economy and the housing market are still affecting us all.
Should be an interesting year