If the insurance business is lucrative, does it follow that agents earn well in doing their jobs? With all the vehicles out there needing insurance, it raises the question on how much an insurance agent make.
http://www.kanetix.ca/auto-insuranceFor starters, the amount of commission an agent makes depends on the type of insurance policy a client takes out. As an example, agents can earn from 40% to 70% based on the premium for the first year of a $250,000 policy. The maximum that an agent can earn is 120%. Some agents dealing life plans get commission cut that is higher that those dealing car insurance policies. An agent can earn commission rates that range anywhere from 10-15% for the past ten years. This is the trend for almost a decade. The commission depends on what the contract says and the volume of policies that are sold.There are also different rates for agents who are either kept on the company’s monthly payroll and insurance brokers. Captive agents who are retained with monthly salaries have lesser commissions that insurance brokers. Since the company is already giving them basic regular compensation and sometimes allowances, the commission rates are lower. For insurance brokers, the commission rate is higher. Insurance companies would often come out with policies for these brokers to meet regular quotas for them to earn more. This is usually on top of the regular commission they receive for every policy taken out by a client.
Alberta auto insurance quotesAn experienced agent or broker can also ask for a much higher commission rate plus other incentives that the company may be willing to offer just to get their expertise.
