Not surprisingly, a survey conducted for technology provider Equisoft shows that brokers need more technology in their lives. The insights, however, also reveal a deep divide between carriers and brokers about the fairness of commission paid to intermediaries.

The study commissioned by Equisoft, Digitalizing Life Insurance Distribution, found that compensation management is a sore spot for brokers. Of the carriers surveyed, 11 per cent said it takes more than 60 days to pay their brokers. Just 14 per cent said digital commission capabilities were integrated into their agency management systems, 11 per cent had standalone digital commission management systems, 36 per cent said they had a semi-digital process and 13 per cent said they have a mostly manual process for paying their brokers.

“Brokers stated that carriers compensation plans are overly complicated; further, they said compensation doesn’t feel fair, nor does it motivate them to do their job well,” the report states. “Carriers, on the other hand, believed their compensation plans are fair and motivational.” The deep divide is revealed in the numbers: Among carriers, 75 per cent said their commissions motivate brokers to do their jobs well. Just 58 per cent of brokers agreed that was true. When asked if carriers compensate brokers fairly, 71 per cent of carriers agreed, while just 54 per cent of brokers said the same.

The survey of just 211 conducted in August 2022 identified four top challenges brokers have with their carriers. These include a lack of tools to help manage licenses, credentials and appointments, followed by non-competitive commissions and bonus programs and the inability to track compensation.

“The life insurance industry is in a time of flux,” the company adds in a statement about the release of the survey’s findings. “Unfortunately, many brokers still lack the digital tools needed for advisor success.”