Admittedly I'm coming from the health space and I'm trying to understand the life compensation structure. From what I can discern, the total 1st yr payout approximates 150%. Second yr probably around 30%. So in the first two yrs, the carrier is remitting back to the field nearly all the premium paid.
Add to that HO admin & risk costs and the carrier is lucky if they can break even by the end of yr 3.
Rendering this model even more problematic is the heavily weighted 1st yr comp.
In my view this invites churning.
If the average FE policy isn't persisting for at least 3 yrs, then carriers
Source of insurance-forums.net
Add to that HO admin & risk costs and the carrier is lucky if they can break even by the end of yr 3.
Rendering this model even more problematic is the heavily weighted 1st yr comp.
In my view this invites churning.
If the average FE policy isn't persisting for at least 3 yrs, then carriers
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