Producer Pay Changing in Business Insurance Agencies

Insurance consultant Chris Bursnd had a nice article in the Insurance Journal about producer compensation. Chris outlined how agencies will not be able to keep the same compensation packages as in the past. In order to stay viable business insurance agencies will have to pay producers less and producers are going to have to produce more. Sounds somewhat depressing right? Well I think Chris is correct as I live this every day. Insurance carriers are reducing commissions and the margins for profitability are slight. Producers will have to be paid less and they will have to prOduce more. The questions arise around how much "extras" do agencies have to proVide to give the value added service that clients expect, and how much do you charge for the services. This is the miliion dollar question that business insurance agency owners will have to figure out very quickly. Until next time be careful out there and know your risks. K

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