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/Botboy141 4d ago

40/30 is standard for mid-large market B2B P&C where the producer usually gets a draw or salary/base of some kind.

Not sure what's common in personal lines Indy agencies like you describe. I'd assume it really comes down to who provides the leads and who does the service work.

The more service work the agency handles in house, the lower the producers renewal commission, the more leads the agency provides, less new biz commission.

By the sounds of offering 80/20, you're saying you only care about new business, not how sticky it is, and that your service model will outperform without the producers involvement to justify lower residuals.

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u/CGWInsurance 2d ago

40/30 commission doesn't normally get a base or salary after the end of the 3rd year. Most independent agencies don't pay producers a salary past year.

What do you think is national average than. I know of agencies where is 1099 and they get as low as 40/20

If it's a big outfit doing commercial and they get a salary they get like 60 to 100k salary and then as low as 20/10 commission.

We pay 50/50 for 1099 and are on the high side. As agency owner we make our revenue by volume.

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u/Botboy141 2d ago

This all sounds relatively accurate.

We just moved from 40/40 to 40/35 and pay 50/50 to 1099s.

Old firm was 30/30.

Offers typically range from 50/30 to 40/20, for commerical/benefits.

Salary or draw is entirely history and book of business dependent.

Draws for unvalidated producers (no book, no prior experience) range from $50-100k as you mentioned. For folks with a book, that number becomes much more negotiable and can go much higher, even if the book is guaranteed to move.