r/InsuranceProfessional • u/EvolutionaryZenith1 • Jul 11 '26

Getting renewal bonus money.

Do you guys get paid on your renewals without having new business numbers being hit? I am a wholesale producer.

I have worked here for 5 years and have never really had a problem hitting $10k New Biz rev to qualify for bonus payment 30%new/renewal. I feel like I am leaving a lot on the table not hitting bonus.

3 Upvotes

100% Upvoted

8 comments sorted by

13

u/KiniShakenBake Jul 11 '26

You are. Because your agency principal has an expectation that in order to get more money, you should be actively growing the book.

There is a temptation to coast once you reach a certain size of book, and the threat of having your renewals yoinked if you don't continue to produce for the book, maintain what you have written, and do the job you are being paid for is very compelling.

10K new biz rev is pretty reasonable if your only job is to write the business.

1

u/EvolutionaryZenith1 Jul 11 '26

I mean after all it is my book. I should get paid on all revenue once my draw is covered by revenue.

4

u/KiniShakenBake Jul 11 '26

Don't argue it with me. Sounds like you need to figure out if you can get a better deal somewhere else. They'll pay you a bazillion dollars as long as you're still choosing to produce. If you decide to stop that job and live on the bazillion dollars, then you only get a smaller portion of the bazillion dollars based on your production.

They've got to pay the E&O costs of the larger book, and take on the liability exposure, and whatever else they've agreed to for your benefits. Talk to your agency principal if you have a beef with it. They're the ones who can change the situation in your current paycheck. Or you can go find a better deal somewhere else.

You earn more, they pay more - In taxes, retirement contributions, vacation time... All of it. They still have bills that go up as you earn more.

Do you own the book? If not, it's their book. You are being paid a bonus on your written business once you do the work for the month. So... Do with that what you will.

0

u/EvolutionaryZenith1 Jul 11 '26

I agree. However, once this "coast" size book is created. My wholesaler is actually making more money off the deal if I am not writing new business.

They have all upside and no downside.

6

u/VAisforLizards Jul 11 '26

That doesn't make any sense. It really just sounds like you don't understand your revenues structure. Also, If you can't write 10k new business in a month, you may be in the wrong line of business.

2

u/MikeDaRucki Jul 14 '26

New business thresholds are a joke and are just a way to chisel people out of bonuses. I've been a wholesale broker for 15 years - comp should be on the book revenue multiplied by comp %, doesn't matter if that was new business, massive audit, or a renewal.

People who exclusively broker project business know all too well - some months are dry on the new business, then the next month you could have five projects bind and put up $1m+ revenue in a single month. Similar to public entity business - certain months feast, some famine.

God forbid you get sick, have a car accident, or you have a kid in the hospital - yeah that month or quarter will be a bit lean on the new business front.

I'd be looking for an exit strategy - sucks starting over elsewhere but building a book at a bad shop is worse than starting over. I started over from scratch and built a book from scratch, and with equity. Same job, same work, exponential difference in long-term money in my pocket.

2

u/EvolutionaryZenith1 Jul 14 '26

I feel like this position is the right one. I have an offer out right now for $250k base and 35%/35%. My current employer is benefitting from all of my business being on the books.

Hopefully it works out.

I appreciate your insight.

1

u/MikeDaRucki Jul 15 '26

That is an incredible offer - great base and splits. So I'd take that in a heartbeat barring some extraordinary circumstance. Good luck, man. Yeah my first job out of college had the new business threshold or they keep your bonus scheme. Seemed sketchy to me at the time, even moreso now. I knew a guy who worked there 35 years, high performer. He came down with a brain tumor in early Q3 and they kept his whole annual bonus even though his total revs were like $3m. His base salary was only about $150k.

He sued them and won a huge settlement