From the January 9, 2012 issue of National Underwriter Property & Casualty • Subscribe!

Allstate Reduces Planned Cut to Agent Commissions

Allstate says it will not cut agents’ base commissions as deeply as it originally announced, but the head of an agents’ group says the rank-and-file is still not pleased with the company’s move.

In a letter to Allstate agents obtained by NU, Mark LaNeve, Allstate’s senior executive vice president/agency operations and chief marketing officer, says the company will not cut base commissions to 8 percent, but rather only one percentage point to 9 percent beginning in 2013.

The current commission of 10 percent on new and renewal policies remains in place next year as the company begins its “transition to the variable component” to better allow agents to adjust over “the next several years” and develop a long-term strategy for the future.

Allstate confirmed the commission-schedule change, saying it has worked with more than 300 agency owners on the compensation structure.

Jim Fish, executive director of the National Association of Professional Allstate Agents, which represents 10-12 percent of Allstate agents, says the change in commission schedule comes after the company learned through a survey of the agents’ displeasure in the cut to 8 percent that amounted to a 20 percent cut in actual commission dollars.

Comments

Resource Center

View All »

Contractors General Liability Coverage 102

What is a prior work exclusion? Which option is right for my client? Why do...

Sign up today to get a 50% matching credit -...

Insurance marketing sometimes seems like it's a game of swings and misses, but we're here...

Guide: 5 Steps to Selling Cyber

Cyber risk and data security is on the agenda of every business owner and executive....

Citation Correlation

Do rigger and signalperson qualifications correlate with the cause of crane and rigging accidents? ...

Complete Guide to Electronic Signatures in Property & Casualty Insurance...

In property and casualty insurance, closing new business quickly is key. Learn how to leverage...

INSTANT ACCESS: Complimentary Sales Closer Questionnaires

Help property owners or managers compare your commercial residential property insurance coverage vs. the competition....

Determining Vacant Property Perils and Valuations

Are your clients fully covered for Vacant Properties? In this economic climate, your insureds may...

Risk Management for Law Firms

This package of 3 concise risk management articles offers straightforward content and practical suggestions law...

Guide: Top 15 E&O Risks-And How To Avoid Them

Accidents happen. But when it's an errors and omissions oversight, that accident can open your...

We'll Show You How to Reach Your Sales Goals

Whether you work alone or have a team of agents working for you, we can...

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Advertisement. Closing in 15 seconds.