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.
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