Compensation Incentive Strategy
Leading insurance companies are working to answer key strategic question to optimize their compensation and incentive strategy. APT helps answer a number of questions, such as:
- What would happen to revenues if commissions were decreased slightly across the board? Was the company simply over-paying commissions based on all of its other broker benefits?
- Conversely, what would happen if commissions were raised slightly? Would incentive increases drive better performance?
- Was the differential structure between new and renewal policies having the desired impact? For example, would raising
commissions for renewals actually improve both new sales and renewals, by making a long term relationship with the insurer more attractive overall?
- Conversely, would raising new sales commissions and lowering renewal commissions increase the book through new sales and manage to maintain satisfactory levels of renewal?
Click here for an in-depth case study about optimizing Compensation Incentives.