North American life insurers are happier with their commission levels and processes than brokers are.
Forrester has reported that finding in a summary of results from a survey of about 200 North American life insurance carriers, brokers and advisors that was commissioned by Equisoft, a financial services software firm.
About 75% of the insurers said their commissions motivate brokers to do their job well. But only 58% of the brokers said the insurers' commission and bonus programs are strong enough to motivate them.
Similarly, 71% of the insurers said they compensate their brokers fairly, but only 54% of the brokers said they feel as if insurers pay them fairly.
What It Means
If you earn insurance sales commissions, you might have trouble communicating with the insurers about how you see their pay.
Commission Payment Systems
About 25% of the brokers surveyed their firms have digital commission management systems.
But 49% said their firms have commission management strategies that are mostly or about half manual.
Another 27% said the insurers handle any complicated commission calculations for them.
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