Sales Incentive Ideas for Insurance Agencies
Updated
An incentive is an extra reward for a result you want more of. Start with the result, then pick the reward that fits it.
Start with the behaviour
Before you choose an incentive, write down the one thing you want more of this month. More quotes. More second policies in a household. More life sales. Fewer cancellations. An incentive that rewards everything ends up rewarding nothing in particular.
Then check you can count it. If you can't see the number each week, your team can't either.
10 ideas, and what each rewards
- Tiered rate. A higher commission rate once a producer passes a monthly target. Rewards total production.
- Per policy bonus. A flat amount on each policy of one type. Rewards the count, which helps small policies you want more of.
- Second line bonus. A flat amount when a household adds a second product. Rewards rounding out accounts.
- Milestone bonus. A reward when a running total reaches a big number. Rewards steady work over a quarter or a year.
- Streak bonus. A reward for hitting a target several months in a row. Rewards consistency over one big month.
- Team goal bonus. Everyone eligible earns it when the office reaches a shared goal. Rewards helping each other.
- Activity bonus. A reward for hitting a count of quotes or calls. Rewards the work that leads to sales, which helps new hires before their sales build up.
- Retention bonus. A reward for a book that renews at a target rate. Rewards service and follow-up.
- Time off. An afternoon or a day off for a target. Costs little and many people value it highly.
- Recognition. A spot at the top of the board or a shout-out in the team meeting. Costs nothing and works well alongside a real reward.
Work out the cost first
Every incentive is a cost. Work it out on paper before you announce it.
Example. You offer a $20 second line bonus. Last month the office added 15 second lines. If the bonus lifts that to 25, it costs 25 × $20 = $500. If each new line earns your agency $100 in commission in its first year, those 25 lines earn $2,500. The extra 10 lines earned $1,000 and the bonus cost $500 in total.
Do the same for a tiered rate.
Example. A producer earns 3% of premium, and 4% on premium above $30,000 in a month. They write $35,000. The tier costs you 1% × $5,000 = $50 extra that month.
Keep it fair and clear
- Write the rule down in one or two sentences, with the target, the reward and the dates.
- Say when it is paid and whether a chargeback takes it back.
- Pick targets most of the team can reach with effort. A target only one person can hit motivates one person.
- Change one incentive at a time, so you can tell what worked.
Check if it worked
After the month, compare the number you wanted to move with the month before and the same month last year. If it moved and the cost was less than what it earned, keep it. If not, change the target or the reward.
How Agency Edge works it out
Agency Edge holds Earnings Tiers and per policy, milestone, streak and Team Goal bonuses in each person's commission plan, and adds them up for every pay period. You review each period before you pay anyone. See Add a bonus to a plan, or read about commission and incentive tracking.
Put an incentive in your plan
Tiers, per policy bonuses, milestones, streaks and team goals, worked out from your sales.