Optimal Compensation Management for Life Insurers: Aligning Agents with Organizational Goals

Executive Summary

In today’s soft market, it is becoming increasingly difficult for life insurers to find new customers. To maximize profitability, life insurers need the ability to contain costs while also leveraging creative incentive programs that keep agents and brokers focused on company objectives.

Although commissions are a huge expenditure, too often sales behavior is not in line with the insurer’s goals. There are a variety of reasons for this, such as the compensation plans themselves, the timing of payments and incentives, communication methods, and a lack of analytics to measure plan success. Numerous organizations are handcuffed to old practices that do not give them the ability to align agents and producers with company strategy and achieve the desired results.

The right technology solution gives insurance companies the functionality they need to align agents and producers with corporate strategy and bring about dramatic changes. For example, a carrier can motivate the channel by initiating incentives that reward for increased sales volume, rather than paying a set per-policy commission rate regardless of volume of business written.

Strategic tools for aligning the channel and streamlining operations—including the flexibility, agility and analytics capabilities so critical for competing in today’s changing markets—are all available in a single, proven technology package: the VUE Compensation Management™ solution from VUE Software^®.

With VUE Compensation Management, insurance company management can quickly restructure compensation plans as needed, increase business agility, build strong channel relationships and improve administrative efficiencies. By removing the obstacles that prevent carriers from succeeding, the solution empowers them to align agents with company goals and realize the vision of optimal compensation management.

To access the full content of our white paper Click Here.