Also in this issue:
Your bucket is leaking!
Confidence in the voluntary industry rebounds...is the index predictive?
Benefit Brokers move up the learning curve
Is your strategy chiseled in stone or frozen in time?
Are your commissions keeping up?
Information—our partners’ secret weapon
Updated Snapshot report available
Recent lessons from our consulting projects
Healthcare reform—are you ready?
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Fall 2009/ No. 81
Are your commissions keeping up?
Today’s voluntary executives say that attracting quality brokers is their number one concern. It’s not surprising. As we have written many times in this newsletter, distribution is the scarce commodity in the voluntary market. Simply put, there is greater demand for distributors than the supply. As a result, carriers must compete for the distributors’ attention.
One key component of any value proposition for attracting brokers has always been compensation. Carriers have to make sure that what they are paying is competitive with what others are paying.
Eastbridge recently released our updated Spotlight Report outlining the commissions and compensation practices of voluntary carriers. The report, Commission and Compensation Practices of Voluntary Carriers—2009, provides data from 27 different carriers and clearly shows that practices are continuing to change. The report compares the findings to those from our last study in 2005. Some of the changes include:
- Almost three-quarters of the carriers in our study offer more than one commission schedule to the writing-level broker.
- More carriers today offer brokers a choice between heaped or level commissions.
- Many product lines have seen increases in the writing-level commission over the past 3-5 years.
Some of the other topics in the report include:
- Commission rates by company and product line
- Options available
- Other types of compensation and/or bonuses
- Frequency of paying commissions
- Other administrative practices related to compensation
The report is now available for purchase for $4,000. Click here to view a description of the report and the table of contents.
To order the report, call us at (860) 676-9633 or email us at info@eastbridge.com.
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