Production minimums are the amount of annual premium a carrier requires you to write to maintain your appointment. Fall below the minimum and the carrier may terminate your appointment, putting you on probation first in most cases. These minimums exist because carriers invest resources in onboarding and supporting agents — they need a return on that investment.
$25,000 - $75,000 annual premium. Examples: West Bend, Penn National, Westfield. These carriers are more accessible and forgiving with new agents. They value the relationship and are willing to grow with you.
$75,000 - $150,000 annual premium. Examples: Erie, Auto-Owners, Cincinnati, Safeco. The sweet spot for most independent agents. High enough to filter out inactive agents but achievable within 1-2 years of focused writing.
$150,000 - $500,000+ annual premium. Examples: Travelers, Liberty Mutual, Nationwide. These carriers have higher standards because they have more agents competing for the same appointment slots. Direct appointments at this tier are challenging for new agents.
$250,000+ annual premium or minimum policy count. Examples: Chubb, AIG Private Client. These carriers are selective about agent quality, not just volume. They want agents who understand the high-net-worth market.
When you write through an aggregator, your premium counts toward the aggregator's total block with that carrier — not just your individual contribution. The carrier sees the aggregator as one account writing millions in premium. This means you can write $30,000 with Travelers through your aggregator and keep the appointment, even though Travelers' direct minimum might be $200,000.
This is the primary reason new agents start with aggregators. You get access to carriers you could never meet the minimums for individually.
Most carriers do not terminate immediately. The typical process: you receive a warning letter, then a probation period (usually 6-12 months) to increase production. If you still fall short, the carrier terminates the appointment. Some carriers are stricter than others — Progressive and Travelers tend to enforce minimums more rigorously than regional carriers.
Losing an appointment does not mean you lose existing policies — those clients stay in force. But you cannot write new business or make changes without an active appointment. Clients who need endorsements or rewrites may need to be moved to another carrier.
The biggest mistake new agents make is getting appointed with 10+ carriers and writing a little with each. Instead, focus premium with 3-5 carriers. Hit minimums with each. Then add carriers one at a time as your book grows. It is better to be a valued agent with five carriers than a marginal agent with fifteen.
Production minimums, commission rates, and state availability for 44 carriers.
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