INSURANCE agencies face a host of important questions right now in the face of a softening market. In any market, questions of fair compensation for producers and CSRs are near the top of the list. We recently had an extended conversation about compensation and other topics while meeting with one of our agency partners. We came up with several sets of questions that all agencies should ask themselves:
?Should we pay our producers on all accounts?
?Should we establish a "bare minimum level" of premium for accounts, below which we don't pay commissions?
?How do we get our producers to grow their books of business?
?Should we compensate CSRs for sales?
?What should be the split between agencies and producers?
?Where should we focus our efforts in 2005?
Agencies should be able to answer these questions, too. Use your responses to form a production-staff compensation plan, following the guidelines below:
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