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2 minute read
Dave Stephan has worked for Washington National for 23 years with the last 16 focused on sales and relationship development for supplemental health and life products. He started his sales career answering calls on the sales desk and found it invaluable to speak directly with customers and understand what they really want. Dave joined Host, Alan Edgin, to discuss the strategic importance of commissions. Washington National prides itself on providing detailed, accurate commission statements that drive agent trust, loyalty, and agency growth.
The importance of Commissions
Commissions are the lifeblood of agencies and FMOs, but many carriers struggle with commission systems, especially if they have multiple, jerry-rigged legacy systems. Carriers realize they need to improve commissions to improve agent recruiting, motivation, and retention. The accuracy and timeliness of commissions, and flexibility in pay cycles are critical. But Dave explains that in his experience, “the most important thing is showing the commission details to the agent and agency so they see what they’re being paid is accurate for everything they sell. I love my job, but I wouldn’t do it for free and I wouldn’t do it if the pay was continually wrong.”
Washington National Builds Trust with Accurate, Detailed Commissions
CNO Financial Group, the parent company of Washington National, has invested significantly in consolidating legacy systems over multiple lines of business so they can provide a single, simple commission statement to agents. Commission statements that are easy to understand create trust with agents and distribution partners.
This new system leverages e123’s distribution and commission systems to post commission statements weekly in their agent portal. For maximum agent commitment, they pay weekly in advance on submissions, with flexible options for agents who prefer a different schedule.
While many carriers are willing to accept a margin of error with commissions, Washington National’s executive team is committed to “continuous improvements in commission reporting and the statements so we can simplify them for not only the agency but the downline agents.” While some new agents complain that the statements may have too much detail, Dave reports “The feedback that I get is once you learn how the statement works and the information provided, you appreciate the detail that we give, especially with advancing.” For every payment that enters the system, Washington National lists it as a recoup from the advance or as an earned payment when it’s out of the advance period. And they can provide this level of detail for unlimited hierarchies for downline optimization.
Creating Trust Through Technology and Process
Washington National understands how important trust is when working with distribution partners. With the e123 commission system, Washington National “has tried to remove every opportunity for human touch and mistakes to be made, but there’s always a human factor and mistakes will happen.”
In Dave’s world, trust goes beyond technology. Agents and agencies need to trust that if a mistake happens, the carrier will promptly fix it. And a strong commission management system helps Washington National do that as there’s one place to quickly and easily access the data needed to correct human issues, which agents see immediately in their statements.
The Future of Commissions
Washington National uses its commission management system as a strategic advantage to increase insurance distribution, agency growth, and agent retention. You can too with e123’s Commissions for Carriers. Contact us to learn more.
