Commission Split Calculator
Project commission across writing producer, servicing producer, and agency over multiple years.
Commission Split Calculator
Project how commission splits between writing producer, servicing producer, and agency over the life of an account.
Total commission over 5 years
$27,500
Agency keeps 30% ($8,250)
| Recipient | Share | Total |
|---|---|---|
| Writing producer | 50% | $13,750 |
| Servicing producer | 20% | $5,500 |
| Agency | 30% | $8,250 |
Estimate for planning only. Actual splits follow your producer agreements, which may credit new and renewal business differently.
FAQs
- How does a commission split work?
- Gross commission is divided by agreed percentages among the writing producer, servicing producer, and agency. For example, a 50/20/30 split pays the writer 50%, the servicer 20%, and the agency 30%.
- Why do first-year and renewal rates differ?
- Carriers often pay a higher rate on new business than on renewals. Producer agreements may also shift more renewal credit to whoever services the account over time.
- What is the difference between writing and servicing producers?
- The writing producer brings the business in and earns new-business credit. The servicing producer manages the relationship and renewals, and is paid to retain the account.
- How is the agency's share determined?
- The agency keeps whatever percentage remains after the writing and servicing producer shares. That share funds overhead, support staff, and profit.
Related Terms
Producer Licensing
The state-by-state system requiring insurance agents and brokers to obtain and maintain licenses to solicit or sell insurance for each line of authority.
Independent Agent
A licensed producer representing multiple carriers who places business based on client need and market fit, owning their book of business on commission.
Binding Authority
Delegated authority letting an agent, broker, or MGA commit a carrier to coverage without case-by-case approval, within agreed limits.