Truly I live a more exciting life than just insurance - no - really, really I do. But you will just have to get to know me to find out what those other things are - this site and this blog is....all things business..all things insurance. As you can see - I just have hundreds of viewers.
Best deal of the day -
This is our record so far - we just closed a deal saving our client a record 75% off their insurance premium on workers' compensation. The client went from just a touch over $25,000 in premium to $6,800. Incredibility, legitimate and accurate. We do this every year for some lucky company - but our largest has been about 72%. I just thought I would share some of these results with the world. It all comes down to putting power back to business owners - and I LOVE that!
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Thursday, February 28, 2008
Secrets Your Agent Doesn't Want You To Know About
Your agent doesn’t work for you.
So, your agent says they give you the best deal. They’re very responsive when you have a claim or question. Isn’t that working for you? Is it?
How does it really work? When the agent gets paid a percentage of what you pay – how can they really be looking after your best interest? If you pay less don’t they then make less? How much do they make?
Let’s take a look at these issues. An agent make approximately 10%-15% on workers’ compensation and 15%-20% on property and general liability policies – some cut special deals with the insurance carriers for higher commission rates. Some are as high as 30%. This is a percentage of the total premium. In addition to this, the agency gets an additional contingent amount of money if the agency writes a certain volume of profitable business with an insurance company. So in fact, there is an incentive to write business with some insurance carriers over others – how much commission up front, how much back in profit sharing.
When you receive your insurance proposal does it list the commission on the premium page? Does it tell you what the agency will get if they write business with that carrier? Most agents do not give you the commission amount and agents never say what the contingent profit sharing plan is with each of their carriers. Does your agent work for you? No, they operate a business just like you and it is for PROFIT, but their profit is your loss unless you are savvy enough to know how to navigate the waters.
Insurance agents and insurance carriers should make a profit. However, it seems that their profit at times is a bit large. Consider that as a consultant we average a savings of 35% on 98% of the accounts we work with in our company. Consider that every year we find a client where we save them 50% or more. How can that happen? Are the business owners asleep at the wheel of their own business? No, it is the system that sets it up this way. It is a product that most do not fully understand and until recently the system only had the “insurance experts” of insurance agents to help business owners out with this process. They are “the system”. The best avenue is to look beyond “the system” and that is with independence. You can hire a full time insurance specialist or you can hire a consultant paid directly by you – the client. Who do they work for, one person, you.
The best part of this is some consultants – like our company – believe so strongly in what we do – that we offer to our clients a win/win. We are only paid if we save you money without jeopardizing your coverage or quality of carrier in any way. See our website for more information about how we work and check back from more tips…they get better. You don't even have to change agents to win over "the system". www.pracentral.com
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