With the long history of insurance companies paying compensation to agents, one would think the commission process would work like a well-oiled machine. But the challenges in compensation are becoming more evident as the insurance industry transforms itself into the one-stop financial supermarket for all types of insurance.
Despite hundreds if not thousands of types of insurance coverage, with thousands of insurance agents, over 40,000 insurance agencies, serving tens of millions of insurance customers, we are a long way from being a well-oiled machine.
Part of the reason is that insurance has been around a long time and agents around for nearly 200 years. This industry tended to pave the cow path rather than create a super-highway of process efficiency. And, truth be told, while the insurance industry can lump all its segments into a single insurance basket, each segment of the insurance industry stands on its own. That is why property & casualty differs from life insurance in significant ways. Financial measures are different, terminology is different, customers are different, the methodologies to sell and service are different. In short the only common tie that binds is that we call it all insurance, and we use the same person to sell our products, regardless of industry segment.