Calculators › Commission & Agency
Estimate a carrier profit-sharing (contingent) bonus from loss ratio, growth and premium volume.
Many carriers pay agencies a contingent or profit-sharing commission when their book with the carrier is profitable and growing. The bonus percentage typically depends on a loss-ratio grid with premium and growth thresholds.
Bonus = Earned premium × Bonus % for the tier whose loss-ratio ceiling the book is under, if premium and growth thresholds are met.
$2.4M earned with $1.08M incurred is a 45% loss ratio — the 3.5% tier, paying $84,000.
No. They depend on the year’s results and the carrier’s agreement, which can change annually.
Usually incurred losses including reserves, often capped per claim — check the agreement.