Carriers continue to find ways to use commissions and compensation practices to entice brokers to sell more voluntary/worksite products.

AVON, CONNECTICUT, USA (May 30, 2017)

Although commissions have remained relatively steady over the past eight years, the ranges carriers are offering to producers for many products seem to be widening, particularly for level commission options. Carriers are also continuing to find ways to offer greater flexibility and choices with their commission and compensation programs such as having multiple commission schedules and various commission options, or allowing different schedules for each product or case.

The 2017 Voluntary Carrier Commission and Compensation Practices Spotlight™ Report updates Eastbridge’s past studies on the same topic by examining the compensation practices and policies of top voluntary/worksite carriers. Following are a few additional findings from the report:

• Most carriers do not change commissions based on the type of enrollment conducted.
• Few carriers conduct contests for brokers, but the majority offer conferences and/or incentive trips.  
• Carriers are looking at increasing electronic and online information to give brokers greater access to commission information.

Some of the specific topics covered in the report include commission schedules by product line and by company, takeover commission rates, vesting requirements, advance and payment practices; commissions paid for different enrollment types, and bonuses and other compensation paid.

Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.