P and C Agent Growth Authority

Messing with Our Money - Compensation Games

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In this episode, Jon and Erin dive into the evolving landscape of the insurance industry, focusing on the potential shake-up of traditional commission structures and what it means for captive agents like themselves.


Can Captive Agents Truly Advocate for Clients?

  • Jon and Erin explore an article that questions if agents, employed by insurance companies, can fully act in the client's best interest.
  • The article suggests that the industry overpays some agents, particularly "order takers," by as much as 9%, while undervaluing those who provide real advisory services.

    • Commission Structures: Overcompensation or Underpayment?


    • Order Takers: These agents may only be worth 8-9% in commission, simply pushing products without adding much value.
    • Advisor Agents: High-quality agents who offer deeper advice should earn closer to 18% in commission.

      • Independent Agents: Order Takers in Disguise?

        • Despite their flexibility, many independent agents may still operate as basic order takers, missing the opportunity to act as true advisors.

        • A Radical Proposal: Changing How Agents Are Paid

          • The article suggests that carriers should pay lower commissions for basic transactions, while clients seeking expert advice should hire independent advisors, paying up to 18% for quality guidance.
          • This model would increase transparency but raise concerns about accessibility and affordability for clients unable to pay upfront for advice.

          • Engaging and Informed Clients

            • The proposed shift would result in more informed consumers demanding better service, as clients who pay directly for advice would be more invested in their coverage decisions.

            • Book Highlight: "The Million-Dollar Agency"

              • Jon and Erin discuss strategies from the book, including the "three swings strategy," which focuses on income diversification and adding value beyond policy sales.
              • Key takeaways include offering risk management consultations, specializing in niche areas, and providing educational content to clients.

                • Jon and Erin wrap up by encouraging listeners to reflect on the evolving client-agent relationship and the future of the insurance industry.


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                P and C Agent Growth AuthorityBy Jon L and Erin M