The 2018 Broker Compensation Report examines the commissions and fees that come with brokerage services.
How much are insurance buyers spending on brokerage services? Which industries pay more and what lines of business have the highest compensation paid as a percentage of premium? Are insurance buyers paying their brokers overall fees or commissions?
The 2018 Brokers’ Compensation Report answers these questions and more. Over the last 10 years, Advisen has been polling insurance buyers and brokers about their views on product offerings and compensation.
Advisen’s last analysis in 2016 identified several important conclusions:
• Brokers continued to evolve their service offerings to respond to buyer needs.
• A disconnect persisted in terms of what services insurance buyers value and what brokers thought their customers valued.
• Compensation practices varied significantly across industry and revenue groups.
Launched in 2008, the Insurance Broker/Agent Compensation Survey has seen how broker compensation practices shifted from commission-based pricing to fee-based services and back again. It has also documented the similarities and differences of insurance buyers’ and brokers’ views.
The 2018 survey is the sixth leg of this benchmarking data collection initiative conducted in 2008, 2009, 2011, 2014 and 2016. The results provide a fascinating insight into the evolving broker compensation picture.
“We have very large programs and a large annual spend; we like to use multiple brokers to have access to the entire market and ensure we are getting the most competitive rates and top rate service.”
-Respondent to the 2016 Survey
“Given the significance of our annual insurance program, Advisen’s [Broker Compensation & Services] Report proved helpful to our Risk Management department’s efforts in evaluating our P&C brokerage relationships. This report, which we found to be the only one of its kind, enabled us to ask better questions of our brokers, and to make sure that our services and fee structures are more aligned with our department’s goals.”
• Executive Summary
• Key Findings
• About the Survey
• About the Respondents
• Use of Brokers
• Broker Compensation Practices
• Insurance Buyers’ Views
o Fee-based vs. Commission Compensation Model
o Broker Compensation Model and Company Size
o Broker Compensation Model by Industry
o A Look at Broker Compensation Across Nine Lines of Business
o Contingent Commissions
• Brokers’ Views
• Survey Summary and Conclusions
• About Advisen
Order your copy of the 2018 Broker Compensation Report.