This is nothing more than a smoke screen for Liberty Mutual agents. Instead of making more money for your exclusive agent carrier, recognize that you could sell for all of those companies being named in the article and get paid almost double what you now make. If the exclusive agency channel was winning for carriers, companies like Nationwide and Liberty Mutual would not be creating these knock-offs to make their agents feel more empowered.
As other comments stated, exclusive agent model is too antiquated. Also, Liberty Mutual wants badly to rid themselves of paying for employee benefits and a defined benefit plan (pension). As you can read in the article, they still want to fully control the agent staff, which is why they will offer (probably a very low) salary, to “own” the agent force. It will be interesting to watch, but Liberty Mutual is not a career-friendly company. Agents likely are scared.
Anyone opening an agency for a captive company in 2021 either has their head in the sand or is new to the business and naïve. These companies are all moving to independent and/or direct write/internet models.
Like Allstate, companies will continue to put the screws to their agents until they quit or beg to get a salary and become an employee like in this deal. Captive agents with an office in your local strip mall will be a thing of the past in 5 years, maybe less.
Not sure what they are doing currently, but LM contracted with Bolt Agency and LM still, as of now, use Bolt. They pay their reps 4% NB commission, 1% renewal. Awful. LM, as a corporation, no doubt garners 15 – 25% (both NB and renewal commission) as they give Bold over 2,000 agents to sell for them. LM keeps the 11 – 24% difference as pure non-underwritten commissionable profit for the corporation. When they first rolled out Bolt in 2016, reps had no production requirements, but the profits were so great they started requiring reps to sell Bolt (Progressive, Stillwater, Travelers) as part of their yearly sales quota. No matter what the scenario looks like as the new Comparion Agency, the historical data of their management style and comp plans tell anyone with a lick of sense that the reps will lose, but will be spun as “look at us, we are brokers now!” Pension, will it be frozen going forward? Employee benefits, will they continue? Transitioning into an “agency model” but retaining heavy-handed management…is not “agency.” The reps are already talking and are nervous. If you look on other social media, only middle and upper management are commenting “hip hip hooray!” Not a bad place to start a career, but get out after 2 – 3 years. Compensation-wise, the highest producers and most celebrated reps are the ones being screwed the most and they don’t even know it. Good luck to all!
I have liberty but cant get them to help me. I asked back in febuary for proff of insurance its now end of may still waiting. i told them my agent i guess he quit cause i was not informed. the girl who answered the phone told me its true you have no agent.Did she try to get me one?? No on the website each persons e mail address will not connect. when i get ready to get another car since no one can help me. i guess maybe another company can help.
This is nothing more than a smoke screen for Liberty Mutual agents. Instead of making more money for your exclusive agent carrier, recognize that you could sell for all of those companies being named in the article and get paid almost double what you now make. If the exclusive agency channel was winning for carriers, companies like Nationwide and Liberty Mutual would not be creating these knock-offs to make their agents feel more empowered.
True statement. Used to work for LM as a captive. Much happier as a true independent selling LM and hundreds of other carriers and making 15% plus.
As other comments stated, exclusive agent model is too antiquated. Also, Liberty Mutual wants badly to rid themselves of paying for employee benefits and a defined benefit plan (pension). As you can read in the article, they still want to fully control the agent staff, which is why they will offer (probably a very low) salary, to “own” the agent force. It will be interesting to watch, but Liberty Mutual is not a career-friendly company. Agents likely are scared.
Anyone opening an agency for a captive company in 2021 either has their head in the sand or is new to the business and naïve. These companies are all moving to independent and/or direct write/internet models.
Like Allstate, companies will continue to put the screws to their agents until they quit or beg to get a salary and become an employee like in this deal. Captive agents with an office in your local strip mall will be a thing of the past in 5 years, maybe less.
Those days have been over i was one of those local agents but its all in the past. Insurance can largely be done from home
Not sure what they are doing currently, but LM contracted with Bolt Agency and LM still, as of now, use Bolt. They pay their reps 4% NB commission, 1% renewal. Awful. LM, as a corporation, no doubt garners 15 – 25% (both NB and renewal commission) as they give Bold over 2,000 agents to sell for them. LM keeps the 11 – 24% difference as pure non-underwritten commissionable profit for the corporation. When they first rolled out Bolt in 2016, reps had no production requirements, but the profits were so great they started requiring reps to sell Bolt (Progressive, Stillwater, Travelers) as part of their yearly sales quota. No matter what the scenario looks like as the new Comparion Agency, the historical data of their management style and comp plans tell anyone with a lick of sense that the reps will lose, but will be spun as “look at us, we are brokers now!” Pension, will it be frozen going forward? Employee benefits, will they continue? Transitioning into an “agency model” but retaining heavy-handed management…is not “agency.” The reps are already talking and are nervous. If you look on other social media, only middle and upper management are commenting “hip hip hooray!” Not a bad place to start a career, but get out after 2 – 3 years. Compensation-wise, the highest producers and most celebrated reps are the ones being screwed the most and they don’t even know it. Good luck to all!
I have liberty but cant get them to help me. I asked back in febuary for proff of insurance its now end of may still waiting. i told them my agent i guess he quit cause i was not informed. the girl who answered the phone told me its true you have no agent.Did she try to get me one?? No on the website each persons e mail address will not connect. when i get ready to get another car since no one can help me. i guess maybe another company can help.