Voluntary Carrier Commission and Compensation Practices

Cost: $3,500; published 2017

Having an attractive broker compensation program is essential in a constantly evolving and competitive voluntary market. High quality products, service, administration and carrier ratings are also important, but if a carrier cannot compensate producers/brokers enough to sell their products, then these points are moot.

The 2017 Voluntary Carrier Commission and Compensation Practices Spotlightâ„¢ Report provides the latest updates on this important topic. Specifically, the report looks at:

  • Commissions (e.g.: high/low levels, schedules by product, takeover commissions)
  • Vesting requirements
  • Advance practices
  • Bonus and other compensation paid
  • Payment procedures and reporting
  • Compensation changes and future trends

With this data, carriers can determine key trends in compensation as well as examine their own commission practices to determine if changes or adjustments are needed to remain competitive. 

 

View Table of Contents

1. Executive Summary

A. Report Objectives

B. Key Findings

C. Methodology

2. Detailed Carrier Findings

A. Commissions

1. Number of Commission Schedules

2. Percent of Commissions Paid (High/Low Levels)

3. Heaped vs. Levelized Commission Options

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/Med Supp Commissions

13. Dental Commissions

14. Vision Commissions

15. First-Year Rates

16. Commission Splits

17.Carrier Enrollment

18. Commission Difference by Type of Enrollment

19. Paper vs Technology Enrollment

20. Takeover Commissions

21. 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 for Debit Balances

5. Advance Recapture

6. Impact of Persistency on Advances

D. Bonuses and Other Compensation

1. Bonuses

2. Bonus Eligibility

3. Bonus Splits

4. Contests

5. Conferences and Trips

6. Licensing and Appointment Fees

7. Other Compensation

E. Payment Procedures and Reporting

1. Payment Frequency

2. Payment Types

3. Minimum Check Amount

4. Reporting Options/Services

F. Compensation Changes and Future Trends

1. Recent Changes to Compensation Programs

2. Compensation Changes in 2017

3. Influence of Compensation on Sales

4. Future Compensation Changes

3. Commission Schedules by Company

 


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