Personal insurance broker

[HomesWarehouse]

Would like some advice from someone who's more knowledgeable on this subject please

A Friend of mine works as an Intermediary broker for First Complete, selling personal insurance cover, such as sick pay for self employed, life cover and critical illness cover he said to me he is looking for someone to take on a local area doing the same, its a self employed gig I know but he claims to be making a fair bit of money, £1k+ every week on commission only

I myself am quite sceptical, but have zero knowledge, I have a fair amount of time on my hands and could easily dedicate 30 hours a week to this, this person said he would love me on board and would set everything up sales wise for me to get me started as he wants someone who has more business knowledge than himself to give him a hand in return.

firstly are these figures real? I have a life policy for £1m and was told the commission on this sale would have been £800 this seems like a lot

apparently selling a sickness cover policy costing aprox £35 a month would gain a commission of £300 ish? there is not much info online regarding this but would love for someone to give me some more info

I own a lot of property and could easily get myself a town center office or small shop front if I needed for this so start-up costs wouldn't be very high either

 

[tony84]

General rule of thumb is to multiply the monthly premium by 20-24 to get the gross commission amount.
From that, first complete would want their cut - depending on turnover it would be around 15%
Your friend would then want their cut. How much their cut would be depends on what they are providing.

As a general rule, my brokers get around 65% of the gross premium.
When I worked for another broker, I received between 50% and 65%.

So £300 on a £35 a month policy seems a little on the low side personally.

The commissions are paid upfront. If the policy gets cancelled within the first 2-4 years a portion of the commission gets clawed back.

Who will be providing the leads?

Also, have you any experience selling insurance? It is not an easy sell and it is not easy to understand.
You need to know about the differences - increasing/decreasing level, guaranteed or reviewable, ABI/ABI+, Trusts, rules of intestacy etc. I am diong training with one of my trainee brokers and its taking a few weeks to get up to speed.

 

[HomesWarehouse]

General rule of thumb is to multiply the monthly premium by 20-24 to get the gross commission amount.
From that, first complete would want their cut - depending on turnover it would be around 15%
Your friend would then want their cut. How much their cut would be depends on what they are providing.

As a general rule, my brokers get around 65% of the gross premium.
When I worked for another broker, I received between 50% and 65%.

So £300 on a £35 a month policy seems a little on the low side personally.

The commissions are paid upfront. If the policy gets cancelled within the first 2-4 years a portion of the commission gets clawed back.

Who will be providing the leads?

Also, have you any experience selling insurance? It is not an easy sell and it is not easy to understand.
You need to know about the differences - increasing/decreasing level, guaranteed or reviewable, ABI/ABI+, Trusts, rules of intestacy etc. I am diong training with one of my trainee brokers and its taking a few weeks to get up to speed.

wow thanks for such a detailed post tony, im 90% clued up on the different insurances already and would only need a run through once to refresh, I have worked in sales before but not insurance also the leads would be my personal responsibility so would need to base my time mostly on lead generation if i'm honest which I have not had an in depth think about

I know the guy in question gets most of his leads word of mouth and tends to get info and leads from customers as he goes along as in
'while your hear, let me know if any of your friends are self employed and ill give them a call, see if I can help them'

any advice on lead generation would be great realy as im unsure if this is something I fancy doing in the future or not