National Alliance Compensation Study Released
Austin, Texas-based National Alliance Research Academy announced the publication of the third edition of their producer compensation study titled, Producer Profile: Compensation, Production, and Responsibilities. This study surveyed over 400 property and casualty producers from independent insurance agencies to determine how producers are performing with respect to compensation, sales production, duties, qualifications, education and training.
This study is a guide for agency owners and sales managers to see how their agency producer compensation plans compare to others regarding annual compensation, commission rates, benefits, and covered expenses. Owners can compare their producers’ sales production to the study’s averages, and also learn about average account size, new business production, growth rates, and hit ratios. The study also discusses producers’ qualifications, training needs, and various responsibilities.
Some key findings from the study for commercial lines producers include:
· 32 percent of producers’ annual production is new business.
· Only 41 percent of a producer’s work week is spent on selling.
· The most difficult part about being a new producer was: cold calling prospects, 53 percent; managing time, 48 percent; and using a consistent sales process, 30 percent.
Results for personal lines producers:
· The average commission rates are 32 percent for personal lines new business and 20 percent for renewal business.
· Producers left their previous job because: inadequate dollar compensation, 31 percent; poorly managed agency, 25 percent; and inadequate support staff, 22 percent.
· 22 percent found their current job through referrals, while 18 percent found theirs through newspaper/magazine ads, and 18 percent simply contacted the agency.
With survey results in many key areas, the Producer Profile study can be used as a tool for producers to compare themselves to their peer group, and see how others are compensated, what commission rates are paid, the amount of sales achieved, the time actually spent on sales, difficulties experienced, and opportunities for professional development.
New to this latest edition are: a book section and CD containing sample producer contracts or agreements and sample job descriptions. Agencies can use these samples as templates for constructing new agreements or fine tuning existing ones. With the information on a CD, it is easy to make the changes and tailor the agreements to fit their own agencies.
Producer Profile: Compensation, Production, and Responsibilities is now available for purchase at $75 plus $5 shipping and handling. To order this updated study, call (800) 633-2165, or visit The Academy’s Web site: www.TheNationalAlliance.com.