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Compensation Rate Changes Coming For Allstate Car Insurance Agents

Compensation Rate Changes Coming For Allstate Car Insurance Agents

Thursday’s Post 1.5.12 - Allstate Auto Insurance started the year with a little better news for its agents nationwide. Prior to the end of 2011, Allstate Insurance Company notified it agents it would be cutting its agents commissions by 20% This week the insurer has made revisions to that compensation plan that would have forced reps to incur cuts 20% in  their  earnings.   The Insurance Company, based in Illinois, announced that it would drop its base agent commission payout to only nine percent of  both Car Insurance and homeowner policies.   Although the plan calls for a decrease of 10%, it’s better than the 20% decrease announced last year. The decrease in their agents compensation is starting in 2013. In addition to these changes, the company announced just before the Christmas holiday that it would implement methods by which agents could rake in additional bonuses of six percent, above and beyond the nine percent commission base. In this way, the best performing representatives could earn an annual compensation check totaling 15%.

The raise in potential commission earnings comes with exceptions. The restructuring was created as a reward system for franchise owners which perform to Allstate’s new “factors for agency success” These factors include maintaining continuing education classes, improvements to the agents branch’s office setting, increasing  office staff, and adhering to new earnings quotas laid out in Allstate Insurance Companies financial structuring. The revisions to the compensation structure was a group effort between the auto insurance company and over 300 agency representatives. They explained their success as a car insurance company has always focused on the success of their local branches.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602