The 2016 Broker Compensation & Services Report examines the services delivered by brokers and the commissions and fees that come with these services.
What brokerage services are most valued by insurance buyers? What services are they looking for apart from traditional products offered by their brokers? How are brokers responding to the expanding needs of their customers? 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 2016 Insurance Broker/Agent Compensation and Services Survey answers these questions and more. Over the last eight years, Advisen has been polling insurance buyers and brokers about their views on product offerings and compensation.
Advisen’s analysis of this year’s responses identified several important conclusions:
Launched in 2008, the Insurance Broker/Agent Compensation and Services 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 2016 survey is the fifth leg of this benchmarking data collection initiative conducted in 2008, 2009, 2011, and 2014. The results provide a fascinating insight into the evolving broker compensation and services 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.
Order your copy of the 2016 Broker Compensation and Services Report.