ID Trends Winter 2022 ID Trends Winter 2022 | Page 36

36 ID Trends NAILBA

Making it count -

The state of commissions

60 %
Many agencies , regardless of how big they are , rely on manual processes and commission managers manually determining agency commissions , and their downline producers . This survey shows only 21 % were able to utilize CRM commission modules , while 51 % chose to rely on Excel-based manual processes . And , of those agencies surveyed , more than half of them are greater than $ 5M .
50 %
40 %
30 %
20 %
10 %
0
Manual using Excel
Commissions Module in AMS or CRM
Custom inhouse commissions solution
Other

84 % Up to $ 50K

8 %

8 %

$ 50K to $ 100K
Over $ 100K
All of the agencies surveyed have found errors in commission payments . Of all respondents , 91 % reported they routinely find at least up to $ 10,000 of underpaid commissions annually ; 84 % find up to $ 50,000 .
8.4 % of commission transactions are in error
Commission errors represent
• 27 % of profit
• 19.5 % of revenue
Source : 2022 State of Insurance Commissions Report by GreenWave Commissions Management ( http :// www . GreenWaveCommissions . com )
On average , $ 375,000 of underpaid commissions are recoverable every week — $ 19,500,000 annually .
~ Slava Isayev , GreenWave Commissions