Of the almost three-quarters of carriers surveyed in Eastbridge’s Voluntary Rep Compensation Spotlight™ Report study that set voluntary production goals for their voluntary sales reps, just over 80% indicate their production goals have increased over the last few years. The largest percentage of carriers (50% in 2020) expect their reps to produce between $1 million–$2.9 million in voluntary sales annually, though this percentage is down from 69% of carriers in the 2016 study. Another 45% of carriers have rep production expectations of $3 million or more, which is up significantly from 11% of carriers in 2016.
Total rep compensation has also increased compared to 2016, however most carriers have not increased the number of reps selling voluntary. Only a third of respondents have increased their number of voluntary reps in the last one to two years. Interestingly, carriers with voluntary-only reps are somewhat more likely to have seen an increase: 36% compared to 29% for carriers with multi-line reps. The report further details fixed and variable compensation (overall and by rep type), including basis for payment and additional compensation like healthcare and travel reimbursement. It also covers the market-size focuses and the size of territory managed.
Voluntary Rep Compensation, a Spotlight™ Report
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.