PRODUCTION accounts , they shouldn ’ t be receiving a higher commission on those renewals . Producers can become complacent , shepherding a book of renewals , and not focusing on generating new business . While there are cases when firms allow producers to do a lot of service work , justifying higher renewal commissions – the results may come at the cost of new business development .
Reducing commission for renewal business will encourage producers to focus on writing new business , building relationships with prospects , achieving performance goals , mentoring new producers , and contributing to overall organic growth .
Higher performing firms choose to incentivize their producers by pushing the commission split between new and renewal business closer to 15-20 %.
Where do you want your producers to be spending most of their time ?
REINVEST IN THE SERVICE TEAM
By reducing producer renewal commissions , firms can reinvest into a team whose value and costs are on the rise : your service staff .
Servicing accounts is getting more and more expensive , particularly in compensation costs . Wages have increased for both current employees and new employee expectations . MarshBerry ’ s 2024 Insurance Agency & Brokerage Compensation Study found that service staff received the biggest compensation increase across all roles , going up 6 % for both salaries and bonuses . There is an expectation that salaries will continue to increase as client services expand .
In addition to rising compensation costs , insurance brokerages are becoming overwhelmed with finding enhanced technology and outsourcing services . Both options can help drive efficiencies and improve your client service experience . IT resources are getting
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