Is Agent Satisfaction Becoming Less Important To Insurers?

[AllenChicago]

My colleagues, (Seeking your feedback)

When a commission date falls on a Wednesday or Thursday, many company deposits don't arrive in my bank account until the following Tuesday morning...or, in the case of this month's Wednesday January 15th earned commissions, some deposits won't show until after midnight tonight, which will be Wednesday January 22, 2014. (ML King holiday was Monday.)

Do some companies sometimes not give the "order" to release commissions until after the close of business on Friday, so that they can earn 2 or 3 days more interest on those millions of dollars?

Also, are you finding that the threshold for paying commissions is increasing in general? It used to be that if you chose direct-deposit, even a $10 commission would be paid. Now, a few companies are up to $100.00. Transamerica life was at a $100 threshold for paying earned commission, but lowered it back to $50, I think. There's also an agency called Universal Marketing out of Saint Charles, Missouri, that stopped paying ANY commission unless the amount is over $50. They don't hold and accumulate it for you....they now KEEP it.

Lastly, I've noticed on some of the newer contracts that lifetime renewal commissions are totally gone. Instead, some measly 1.5% service commission kicks in after year 10..and with one company after just 5 years.

Are we being taken advantage of with increased frequency and boldness, or is it just my imagination and too many years in the business (1987) getting the best of me?

-Allen in Chicago

 

[rousemark]

My colleagues, (Seeking your feedback)

When a commission date falls on a Wednesday or Thursday, many company deposits don't arrive in my bank account until the following Tuesday morning...or, in the case of this month's Wednesday January 15th earned commissions, some deposits won't show until after midnight tonight, which will be Wednesday January 22, 2014. (ML King holiday was Monday.)

Do some companies sometimes not give the "order" to release commissions until after the close of business on Friday, so that they can earn 2 or 3 days more interest on those millions of dollars?

Also, are you finding that the threshold for paying commissions is increasing in general? It used to be that if you chose direct-deposit, even a $10 commission would be paid. Now, a few companies are up to $100.00. Transamerica life was at a $100 threshold for paying earned commission, but lowered it back to $50, I think. There's also an agency called Universal Marketing out of Saint Charles, Missouri, that stopped paying ANY commission unless the amount is over $50. They don't hold and accumulate it for you....they now KEEP it.

Lastly, I've noticed on some of the newer contracts that lifetime renewal commissions are totally gone. Instead, some measly 1.5% service commission kicks in after year 10..and with one company after just 5 years.

Are we being taken advantage of with increased frequency and boldness, or is it just my imagination and too many years in the business (1987) getting the best of me?

-Allen in Chicago

Yes and yes!

 

[AZDave]

1986 for me. Agents were treated much better back then. But remember, premiums were agency billed! Did mostly P&C then, but also a lot of health. The company I represented would agency bill the entire premium without offering any payment options. I was good at sales, but sucked at billing. Almost hung it up many times.

With everything so automated, I don't think carriers have much control on the commission deposit dates. But they do have control on the issue dates...

On the P&C end, don't see any carriers with minimum commission to pay. If there was a charge back on your companies that do, would they then allow you to not pay if you owed them less than $100?

It is a new era for us agents. We are geting hammered on all sides. Seems carriers don't have the agents in mind, think we are raking in sooo much and a couple of points less won't effect our relationship.

You Health guys now all about that! Just can't imagine that kind of commission pain and adjustment to business.

Good Selling!

Dave

 

[Larry Tew]

It helps to remember what the insurance company's purpose is. It's NOT to make the world a better place nor is it to assure the comfort of agents. Their ULTIMATE purpose is to earn a profit. Not a bad thing.

They manufacture a product that people want / need, and they need a distribution system to get their product to market, whether it be the internet, phone center, or agent.

They want to distribute their product at the lowest cost while remaining competitive and at the same time keeping their distribution (agents) stable.

Look at it this way. If you ran a business (you do) that required delivery by UPS or FedEx, would you ship next day early morning - or would you ship next day afternoon for less cost if your customers were just as satisfied?

This works both ways. Companies are always looking for lower distribution costs, and as a distributor, you can always look for a better product to distribute.

This may sound like a home office response, but it's just really how things are.

 

[Expat]

Since when did insurance companies ever give a rats a*** about agents.
To them, agents are merely a necessary evil.

 

[xrac]

Yes! Yes! No! No!..............