ASNOA EVP Speaks on 2020 Profitability

With 2020 upon us, we have turned the calendar on another outstanding year for ASNOA and our Affiliate Agencies. In the coming weeks and months, carriers will begin to payout profit and growth bonuses for 2019 performance. Thanks to the hard work of our Affiliates, and The ASNOA Advantage®, we expect to have a very large number of our Affiliates reap the benefits.

ASNOA Affiliates manage profit in their agencies through front line underwriting, proper risk placement when it comes to our carrier partners, and finally by mitigating losses via open communication with our carriers’ claims departments. While profit remains a key measure when carriers “come a calling” for agency reviews, growth has now also moved to the forefront with most of our carrier partners. To that end, many of our carrier partners have tied some sort of growth metric into their agency incentive plans.  Basically, while profit is GOOD, profitable growth is BETTER!

For this year and beyond, it will be vitally important for every ASNOA Affiliate to recognize growth opportunities with each of their carrier partners; specifically, identifying underserved carriers and coming up with a plan to help see those now stagnant relationships can flourish again. For example, listed below are some additional compensation opportunities available for 2020 that focus on spurring growth.

First off, Safeco will be paying an extra 2% commission on all NB in 2020, payable at the policy level on a monthly basis. Not only that, but each agency that hits the 24 application minimum production requirement in 2020 will receive an extra 3% on all NB policies going back to policy one for 2020. Safeco’s bonus will be paid out in the second quarter of 2021. These growth incentives are in addition to the ever-available contingency bonus, which has become easier to achieve in 2020 as they have lowered their threshold to qualify from 55 to 56%.

Next, on the Commercial Lines side, we were identified by The Hartford in 2019 as having a great opportunity to participate in their Stag One additional compensation program.  The Harford recognized only a select small amount of Small Commercial agency partners across the United States. The program gives our Affiliate Agencies the opportunity to earn a bonus of up to 5% on Small Commercial business in 2020 through policy growth, total written premium growth, and – of course – loss ratio.  This program is in addition to the extra 5% commission they are already paying us for WC business at the policy level monthly for 2020!

Lastly, and certainly not least, I’d like to talk about Progressive.  What an amazing partner they have become with our group overall and surely in many of your agencies individually.  Our growth with them has been staggering over the past few years, with our group even being recognized as the 2nd largest Platinum Agency in their entire company in 2019!  That Platinum status affords you, the Affiliate Agents, participation in their Platinum Bonus Programs for 2020, which includes a Platinum Bundled Growth Bonus. This program awards each agency for their individual bundled growth year over year, without respect to loss ratio. Again, the Progressive Platinum Bundled Growth Bonus is in addition to the Platinum Personal Lines Bonus, which is the “contingency” portion of their bonus structure where bonuses are paid out based on L/R and policy growth.

We aim for you to be able to visit your agent’s only page on by the end of Q1 for a more comprehensive view of additional compensation programs available in 2020.   In the meantime, please feel to reach out to your local carrier sales manager for more detailed information on each of their additional compensation offerings for 2020.

Let’s get started on big, big, growth year in 2020 and beyond!

Participation in any profit or volume bonus is always subject to the provisions and minimum requirements outlined in your Agency Alliance Agreement.

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