If the brokerage is profitable with the carrier the company will company will share in the profits with the broker. It really depends on the volume the broker places with the carrier and the loss ratio the broker has with the carrier.
The lower the loss ratio usually will generate a larger bonus check for the brokerage, but premium volume will also figure into the equation.
It is an incentive plan agreed upon between the brokers and the carriers.
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Better to cave in rather than stand with your head held high & justify your existance?
Sorry for the possibly obvious question, but…. What is a “contingent income agreement”?
Many Thanks!
If the brokerage is profitable with the carrier the company will company will share in the profits with the broker. It really depends on the volume the broker places with the carrier and the loss ratio the broker has with the carrier.
The lower the loss ratio usually will generate a larger bonus check for the brokerage, but premium volume will also figure into the equation.
It is an incentive plan agreed upon between the brokers and the carriers.
Hope this answers your question.
Steve,
I think that answers my question quite nicely. Thank you so much.
Es