2024 Insurance Compensation Study
Property & Casualty | Liability | Life
The insurance industry is facing unprecedented cost pressures and ongoing dramatic shifts in sales channels as consumers now have a myriad of options on how to buy policies and interact with carriers. Seller compensation costs alone, whether they are for independent agents or call center reps, can exceed 20% of first year policy premiums. Carriers need to ensure that their compensation programs, at the very least, align with market practices and are further optimized to maximize growth and profitability goals.
How does your sales compensation program compare to industry?
Alexander Group recently completed a comprehensive study on compensation plans and pay levels for the majority of selling roles (employ or 1099) in the industry.
With responses from over 50 U.S. participants, the Insurance Compensation Study provides compensation, productivity, and incentive plan data and insights. It encompasses both employee selling roles and agents (exclusive and independent), covering P&C and Life/Financial lines.
Key findings:
- Agent Programs: Carriers make limited and inconsistent use of critical agent programs like add-on bonuses, new agent incentives and agent segmentation / prioritization.
- Leadership Pay: Leaders receive a more conservative base/incentive mix, with a significant portion achieving their target bonuses.
- Attrition Rates: Carriers with above market base salaries and total compensation for call center reps have significantly lower attrition than those that target below market pay levels.
Schedule a readout today to explore how you can leverage principles and best-in-class guidelines to effectively assess and design your compensation plans.
Please complete the form and an Alexander Group representative will be in contact with you soon to schedule your briefing.
