New Eastbridge report examines compensation of voluntary brokers

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Jul 26, 2023, 08:00 ET

Study shows carriers offer multiple options to compete for top producers

AVON, Conn., July 26, 2023 /PRNewswire/ -- Most voluntary benefits carriers offer numerous options for commission schedules, bonuses and other compensation to attract, compete for and reward the business partners they depend on to market their products, according to Eastbridge Consulting Group's most recent research.

Eastbridge's 2023 "Voluntary Carrier Commission and Compensation Practices" Spotlight^TM Report shows 71% of carriers offer multiple commission schedule variations, 79% offer a bonus program, and 68% pay the same commissions for takeover business as new business.

"Recruiting the right type of broker is essential to voluntary carriers' success," said Nick Rockwell, Eastbridge president. "Carriers must be nimble to compete effectively for top producers, and a competitive compensation program is a key component of attracting — and keeping — the best talent."

The "Voluntary Carrier Commission and Compensation Practices" Spotlight^TM Report compiles data from 28 voluntary carriers surveyed in April and May on practices and trends for commissions, vesting, advances, bonuses and compensation reporting. The report is designed to help carriers compare their compensation programs with others in the voluntary industry to determine if they need to make changes to stay competitive.

Other key findings in the report include:

Most carriers offer an option of heaped or level commissions, but brokers select the heaped model 60% of the time. However, half of carriers surveyed impose restrictions on heaped commissions, such as requiring an active enrollment.
The majority of carriers support commission vesting, and only a few limit vesting to certain types of products.
Fewer than half of carriers offer advances to producers, and very few brokers use them.

Information about purchasing the "Voluntary Carrier Commission and Compensation Practices" Spotlight™ Report is available on Eastbridge's website. Those interested can email [email protected] or call (860) 676-9633.

About Eastbridge Consulting Group
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving companies focused on the voluntary/worksite benefits market in the United States and Canada. Follow Eastbridge on LinkedIn at https://www.linkedin.com/company/eastbridge-consulting-group.

CONTACT: Ginger Bates
EMAIL: [email protected]

SOURCE Eastbridge Consulting Group