New Reports From Celent and Vertafore Show How Compensation Shapes the Relationship Between Independent Agents and Insurers

Carrier compensation plans and management technology play a meaningful role in shaping where independent agents place business in the life and health market, according to the results of two new studies conducted by the independent research and advisory firm Celent.

Based on a survey of 600 life and health agents, the reports—commissioned by InsurTech leader Vertafore^®—show that competitive, thoughtfully designed compensation packages are essential for carriers to attract and keep top producers. Designing and managing such programs, however, is no simple task.

The reports conclude that carriers need specialized technology to effectively model, administer, and track complex compensation plans at scale.

“The compensation features that matter most to insurance agents, like payment options, incentives and accuracy, aren’t easily managed in Excel or in a policy admin or billing system,” said Karen Monks, principal analyst, North America Life Insurance, at Celent and co-author on the reports. “To manage compensation effectively, and to manage their agents more strategically, carriers need specialized compensation management technology designed for the insurance industry.”

In addition, agents also value working with carriers that make their compensation easier to manage and understand. Agents are looking for digital access to commission summaries, supplemental reports and downloadable statements. The surveys found:

• Agents place high value on flexible payment options, with 86% saying personalized schedules such as weekly, biweekly or monthly are “must-have” or “really important.”
• Visibility matters, as 88% of agents rated configurable dashboards as essential or very important.
• Accuracy is critical, with 86% of agents prioritizing the ability to resolve payment disputes quickly and easily.

Smarter agent compensation management

The Celent reports concluded that insurers that prioritize their compensation strategy and execution are better positioned to standout in a competitive marketplace.

Vertafore is equipping carriers to succeed with Sircon^®Compensation, the leading insurance commission software with the speed and flexibility necessary for today’s markets.

With the ability to configure incentive programs, automate payment cycles and centralize commission control, Sircon Compensation empowers insurers to create and manage compensation structures that build stronger distribution relationships and drive sustained growth. Sircon Compensation is part of Sircon^® for Carriers, the industry’s most comprehensive distribution management platform.

Vertafore is also helping carriers thrive in the AI era. The report notes the rising demand for AI capabilities to support insurers in the fast-changing commission management landscape. Vertafore’s upcoming AI-powered assistant will answer commission questions in plain language and recommend dispute resolutions to reduce manual work and improve accuracy.

“Compensation is one of the most powerful ways insurers can strengthen their distribution networks,” said Tracey Brown, general manager of distribution and compliance management at Vertafore. “With innovative technology and practical AI capabilities, carriers can adapt their compensation programs more easily, improve transparency and create stronger partnerships with the agents who drive their business.”

Read the two reports—The Role of Compensation in Life Insurance Agent Placement Decisions and Compensation’s Role in Health Insurance Agent Placement Decisions—now.