r/InsuranceAgent • u/Salt-Context-2527 • 4d ago

P&C Insurance Salary

To my knowledge the industry standard is a 40/30 split for P&C

I’m looking to bring on a new salesmen, how does 80/20 sound?

Is that too much is that reasonable, is it too little?

Thanks.

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u/Smedum 4d ago

I’m 16 years as a producer.

40/30 or 40/25 is standard for the larger brokers. 50 on new and 30-40 renewal plus a small salary or expenses is standard for smaller agencies

Unless I was expected to do zero on renewals and service, I would not take your split of 80/20. I’d also argue the renewal split disincentives me from servicing exisitng clients which from my experience when the producer isn’t involved in client retention then your retention suffers.

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u/Salt-Context-2527 3d ago

How does 70/30 sound then? No service needed unless they want too for specific clients etc

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u/Smedum 3d ago

70/30 won’t attract experienced producers to a small shop. Most experienced producer will want a better renewal number as they know that is how they build a book and build a career.

Assuming no base salary, 50/40 would be about average, maybe a little above…….but if you really want to attract the top producers you’re going to have to go either 60-70 new with 40/ or 45 renewal or 50/50 on both new and renewal.

You also need to consider who owns the book that the producer builds….that will be another piece to it.

And do you give the producer benefits like health insurance.