Commission and
Compensation Practices of Voluntary Carriers — 2009
In today’s competitive voluntary market, the demand for distributors far outweighs the supply. As a result, carriers must compete for distribution “shelf space.” Competitive commissions and attractive compensation policies must be part of any strategy for successfully attracting—and retaining—distributors.
Since 2002, Eastbridge has conducted regular surveys looking at the commissions and compensation practices of voluntary carriers. In this latest spotlight report, Commission and Compensation Practices of Voluntary Carriers, we examine the practices and policies of 27 different voluntary carriers. Some of the questions answered include:
- What commissions do companies pay, by product line, for their worksite business?
- How many different commission schedules are used and who determines which schedule is used for any given producer?
- How is enrollment compensated and what impact does this have on commissions paid?
- Are commissions advanced or paid as earned?
- If advances are allowed, what are the practices and policies?
- When are renewals vested?
- What other types of compensation and/or bonuses are available?
- What are the administrative practices used by companies?
With this data, carriers can assess how their own commissions and compensation practices compare to others in the market.
Order Info: Commission
and Compensation Practices — 2009 is
available for purchase for just $4,000. To purchase a copy,
you can email Eastbridge at info@eastbridge.com or
call (860) 676-9633. Published
2009.
Table of Contents
1. Executive Summary
A. Study Objectives
B. Key Findings
C. Methodology
2. Detailed Findings
A. General Carrier Data
1. Distribution Channel
2. Broker Segment
B. Producer Commissions
1. Number of Commission Schedules
2. Heaped vs. Levelized Commission Options
3. Broker Interest in Levelized 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/Med Supp Commissions
13. Dental Commissions
14. Other Product Commissions
15. Enrollment Commissions
16. Carrier Enrollment
17. Review Schedule
18. Benchmarks Used
19. Vesting of Renewals
20. Vesting Splits
21. Renewal Compensation for Non-Vested Producers
22. Broker of Record Letters
C. Advances
1. Advance Practices
2. Eligibility for Advances
3. Percent of Brokers on Advance
4. Timing of Advances
5. Interest Charged for Debit Balances
6. Advance Recapture
7. Persistency Impact on Advance
D. Bonuses and Other Compensation
1. Bonuses
2. Changes to Bonus Program
3. Stock, Deferred Comp or Other Non-Cash Compensation
4. Other Benefits Offered
5. Contests
6. Conferences and Trips
7. Services
8. Licensing and Appointment Fees
E. Payment Procedures
1. Payment Frequencies
2. Payment Types
3. Minimum Check Amount
4. Electronic Commission Statements
3. Commission Schedules by Company
A. Carrier 1
B. Carrier 2
C. Carrier 3
D. Carrier 4
E. Carrier 5
F. Carrier 6
G. Carrier 7
H. Carrier 8
I. Carrier 9
J. Carrier 10
K. Carrier 11
L. Carrier 12
M. Carrier 13
N. Carrier 14
O. Carrier 15
P. Carrier 16
Q. Carrier 17
R. Carrier 18
S. Carrier 19
T. Carrier 20
U. Carrier 21
V. Carrier 22
W. Carrier 23
X. Carrier 24
Y. Carrier 25
Z. Carrier 26
AA. Carrier 27
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