“My small agency joined PIIB, and, overnight, it was able to compete with the largest brokerages on a level playing field. And, best of all, I don’t have to talk to company marketing representatives all the time.”
– David Haynes Secretary Treasurer |
Profit Sharing CalculatorPIIB is nearly unique in its profit sharing approach. 90% of the profit sharing, new business bonuses and other overrides are distributed to the affiliates. PIIB’s broker agreement requires 90% of the calculated profit sharing to be distributed by April 1 of the following year. PIIB’s profit sharing includes:
Tier One General Shares – 70% of the payments received from Tier One Companies is combined into the General Shares Pool. This pool is distributed to the agencies based on their share of the total premium for all Tier One Companies combined. If an agency has 2% of the premium they receive 2% of the pool. Tier One Loss Ratio Shares – 20% of each Tier One Company’s bonus is distributed to thos agents who has at least $100,000 premium under that agreement and a loss ratio under 46%. New Business Bonuses – New business bonuses are allocated to the agencies based on their share of the new business with each company with such a bonus. If an agency has 10% of the new business they receive 10% of that company’s new business bonus. Total Premium Bonus - Bonuses paid based on total premium are allocated based on each agencies share of total Premium. An agency who writes 4% of the total premium receives 4% of the bonus. Non Tier One Companies - Payments from companies who are not defined as Tier One are distributed the same as “Total Premium Bonus”.
The downloadable “How Much Profit Sharing ... “ will explain the calculations and allow you to estimate the general shares bonus for your agency. |
