Going contingent

Article Abstract:

Insurers should consider retention ratios as an essential part of an insurance agent's contingent commission program. Contingent commission plans have historically been designed around profitability and growth. However, retention ratio, which measures the proportion of an agent's policyholders that renew their policies and stay with an insurer, is infrequently used in contingent commission compensation even if it is likely the most important measure of an agent's performance.

Methods, Compensation and benefits, Compensation management, Insurance agents

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Fee-based compensation replaces shrinking income

Article Abstract:

Insurance agencies are increasing their use of fee-based compensation due to increased competition and declining income. The benefits of fee-based compensation include increased efficiency and enhanced service of clients' needs. Determining appropriate fee-based compensation is dependent on the agency's capabilities and the individual clients' needs. Insurance company contracts and state regulations should be considered before integrating fee-based compensation.

Finance

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