Determining Competitive Commission Structures for Insurance Agents: What’s Fair in Today’s Market?
In the competitive landscape of commercial auto insurance, establishing a balanced and attractive compensation plan for agents is crucial. As an agency owner preparing to expand my team, I’m seeking insights into current industry standards regarding agent remuneration.
Specifically, I’m interested in understanding the common payment models. Are most insurance agents compensated through hourly wages, salaries combined with commissions, or are purely commission-based arrangements more prevalent?
For commission-based setups, what percentage splits are generally considered equitable for new business versus renewals? My goal is to develop an offer that is both appealing to prospective agents and sustainable for my agency, avoiding under- or over-compensation.
If you have experience managing or working within insurance agencies, I would appreciate any guidance or benchmarks you can share. Your insights will be valuable in helping me craft a fair and competitive compensation plan that aligns with industry norms.
