Voluntary Carrier Commission and Compensation Practices
Cost: $3,500; published 2020
Competition for brokers is intense and having an attractive compensation program is vital for carriers to continue gaining market share in the voluntary/worksite market. Excellence in administration, service and product are also very important carrier competencies, but if a broker is not making enough money, sales are going to suffer.
The 2020 Voluntary Carrier Commissions and Compensation Practices Spotlight™ Report provides the latest information on this important topic. Specifically, the report looks at:
- Commissions (e.g.: number of commission schedules, high/low levels, schedules by product, takeover commissions)
- Commission differences by type of enrollment
- Vesting requirements
- Advance practices
- Bonus and other compensation paid
- Payment procedures and reporting
- Compensation changes and future trends
With this data, carriers can examine their current commission and compensation practices as well as emerging future trends to determine if they need to make changes or adjustments to remain competitive.
View Table of Contents
1. Executive Summary
A. Report Objectives
B. Methodology
C. Key Findings
2. Detailed Carrier Findings
A. Commissions
1. Number of Commission Schedules
2. Percent of Commissions Paid at High and Low Levels
3. Heaped vs. Level Commissions
4. Term Life Commissions
5. Universal Life Commissions
6. Whole Life Commissions
7. Short-Term Disability Commissions
8. Long-Term Disability Commissions
9. Accident Commissions
10. Cancer Commissions
11. Critical Illness Commissions
12. Hospital Indemnity/Supplemental Medical Commissions
13. Dental Commissions
14. Vision Commissions
15. Other Product Commissions
16. First-Year Rates for Subsequent Years
17. Commission Splits
18. Carrier Enrollment Support
19. Commission Differences by Type of Enrollment
20. Paper vs. Technology Enrollment
21. Takeover Commissions
22. Benchmarks Used
B. Vesting
1. Vesting of Commissions
2. Renewals for Non-Vested Producers
3. Broker of Record Letters
C. Advances
1. Advance Practices
2. Percent of Brokers Using Advances
3. Timing of Advances
4. Interest Charged on Outstanding Balances
5. Advance Recapture and Percent of Advances Recaptured vs. Written Off
6. Impact of Persistency on Advances
D. Bonuses and Other Compensation
1. Bonuses
2. Bonus Eligibility and Bonus Splits
3. Contests, Conferences and Trips
4. Licensing and Appointment Fees
5. Other Compensation
E. Payment Procedures and Reporting
1. Payment Frequency
2. Payment Types Offered and Minimum Check Amount
3. Reporting Options/Services
F. Compensation Changes and Future Trends
1. Changes to Compensation System/Structure
2. 2020 Compensation Changes
3. Future Compensation Changes
3. Commission Schedules by Company
To purchase Reports: Call (860) 676-9633 or email [email protected]
Spotlight™ Report Index
For more information, please contact us at [email protected] or (860) 676-9633.