Hippo has made a significant decision impacting agent commission
An email reviewed by Coverager reveals that Hippo is making changes to its commission structure based on counties. In certain specified counties, both new and renewal policy commissions will be set at 8%, effective from October 24, 2023. However, in what are termed “lowest counties,” the commission for new and renewals will be 4%.
Hippo explains this change as a strategy to enhance geographic diversity, influenced by the rising reinsurance costs. “I can confirm we are in the process of reevaluating our commission structure. These changes will continue for the next few months as we complete a thorough analysis of our book and determine where to write Hippo policies, while limiting exposure to catastrophe losses.” – A Hippo spokesperson to Coverager.
In related news, Hippo’s CEO, Rick McCathron, mentioned just yesterday that the company plans to recommence offering new business in the coming week. This will be done selectively – “We’ll start it as a trickle and continue to turn it on as each day/week goes by.”