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Agent Commissions | Brown & Joseph

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Agent Commissions

Contingent commissions paid by insurance companies to brokers have typically been contigent on the broker steering a certain amount of business towards the insurance company, and have not been contingent on a particular buyer's behavior.  Contingent commissions also are used between insurers and their regular sales force, their agents.  These agent commissions are sometimes contingent on the loss performance of customers, recognizing the agent's ability to act as a "front line" underwriter.  When a customer defaults on payment and the policy is cancelled the agent must repay any commissions earned back to the carrier.  When agents are independent they may refuse and this is when Brown & Joseph can become a valuable option.