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See The World: Sell Insurance
September 12, 2007
Commission-only sales isn't for everyone, which is why this company uses fabulous travel to recruit and retain agents
By Heather Larson
Company Profile: Bankers Life and Casualty
Industry: Insurance
Objective: Attract and retain agents to sell on a 100 percent commission basis.
Solution: Travel to the annual sales convention at top vacation locales is open to agents who accrue a certain number of sales credits. In addition, an annual incentive trip to a more exotic destination is offered to the top 25 producers.
Results: Using trips as incentives, Bankers Life has experienced a 50 percent growth in sales from 2003 to 2007. The travel incentives have also attracted top talent, including managers from other large insurance companies. In addition, the trips have contributed to dramatically improved retention numbers.
Chicago-based Bankers Life and Casualty, a 128-year-old national insurance company, will recruit 7,000 new agents this year. Because their agents are 100 percent commission based and captive (they can sell only Bankers' products), recruiters showcase potential trips agents can win and highlight the itineraries to make the compensation package more attractive. Recruiters describe annual sales conventions that have taken high-producing agents to Puerto Rico, Palm Springs, Calif., The Bahamas, the Hawaiian island of Kauai and Cancun, Mexico.
To qualify to attend the three-day sales convention, agents must accrue a certain number of Agent Production Credits (APCs), which are loosely based on commissions received for selling insurance policies. Agents who qualify at higher levels earn more free time at meetings. For instance, agents who qualify for the President's Honor Circle spend an extra day at the convention locale, and those who reach President's Honor Circle Elite receive two extra days. Qualifying agents can bring one guest whose expenses are company paid, so nearly 980 people attended the 2007 convention, which was held in Rio Grande, Puerto Rico.
"Over the past few years we have raised the minimum qualification levels for the annual sales convention accordingly, to help meet annual sales goals," says Morgan Murphy, director of meetings and media services.
Bankers also offers its top 25 producing agents an Agent Advisory Trip, which is held at least every two years. These pure incentive trips typically last nine days including travel days, and the destinations are luxurious—places that often grace the covers of travel magazines. In October, a trip is planned to Rome and Venice, Italy. Previous locations have included Ireland, Tahiti and a Mediterranean cruise to Greece and Italy.
In the past, Bankers Life has held merchandise-based sales contests as well.
"We have experienced a 50 percent growth in sales from 2003 to 2007," says Gerardo Monroy, vice president of field administration and analysis. "I believe a key reason for those sales increases is the incentive programs we have in place for our agents." This year's sales are expected to exceed goals.
Over the past two years, says Monroy, Bankers has attracted managers from other large insurance companies who say its travel incentives are very attractive.
"Not only are the locations impressive, but the accommodations, the structure, the leisure activities offered, the speakers and the entertainment, plus the overall experience is top-notch," says Monroy. "This is not to say Bankers Life invests a great deal more money than other companies in incentives, but that over the years we have learned how to effectively plan and execute these events."
The travel incentives Bankers offers not only attract quality producers, but also help to keep them.
"Because our agents are totally commission-based, we have a large turnover early in the process," says Monroy. "But once an agent has made it through the first year, our retention numbers improve dramatically. Our incentive programs play an important role in retention."
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