The Changing Compensation System of Agents.

Since the beginning of the 20th century, the underpinning of agent compensation has been the New York compensation and expense regulations. The competitive demands of a vastly changing product and service environment will not permit companies to maintain the historical compensation levels or traditional patterns of compensation resource allocation associated with the New York regulatory model Two philosophies will drive future compensation strategies. The majority of companies will increasingly allocate valuable compensation resource by performance standards. First year and renewal commissions, as well as expense allowances and company supports, will increasingly be determined by individual agent performance. A growing number of companies will implement nontraditional compensation strategies with a goal of better serving the customer on a more efficient basis. Legalized life insurance commission structures will play an expanding role. Salary, plus bonus programs, are beginning to surface. Experimentation along other lines can also be expected. [ABSTRACT FROM AUTHOR]