Focusing on ease of doing business, insurers will eschew higher commissions to woo agency business, a new study published by Cincinnati-based Ward Group finds.

The report, Agency Compensation and Management Practices Study, focused on commission practices, agent incentives and other agency management practices from a diverse group of 99 insurance companies. Specifically, plans to lower agent compensation in 2010 outweigh plans to increase compensation by nearly a 3 to 1 margin, the study found. With the distribution channel representing the largest expense component outside of loss payments for most property/casualty insurers, the results are not surprising, said Jeff Rieder, President of Ward Group.

Register or login for access to this item and much more

All Digital Insurance content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access