{"id":12979,"date":"2022-02-03T04:23:32","date_gmt":"2022-02-03T09:23:32","guid":{"rendered":"https:\/\/www.resourcepro.com\/how-agencies-can-track-and-maximize-carrier-incentives\/"},"modified":"2025-11-05T11:44:40","modified_gmt":"2025-11-05T16:44:40","slug":"how-agencies-can-track-and-maximize-carrier-incentives","status":"publish","type":"post","link":"https:\/\/www.resourcepro.com\/blog\/how-agencies-can-track-and-maximize-carrier-incentives\/","title":{"rendered":"How Agencies Can Track and Maximize Carrier Incentives"},"content":{"rendered":"\r\n

Michael serves as Lead Specialist of Innovation & Product Development at ReSource Pro.<\/em><\/p>\r\n\r\n\r\n\r\n

Calculate your carrier contingent commissions<\/strong><\/h2>\r\n\r\n\r\n\r\n

Previously, we looked at the importance of carrier contingent commissions<\/a> to agency profits and discussed a few strategies for maximizing them. Now, we\u2019re going to dig into the real nitty-gritty: how to track your agency\u2019s ongoing performance in achieving carrier contingency eligibility requirements.<\/p>\r\n\r\n\r\n\r\n

The best way to evaluate a specific contract is to plug in the numbers. That means reviewing the terms and conditions of each carrier contract and translating them into formulas that will calculate supplemental income based on the monthly production reports you receive from the carrier. These formulas will include eligibility variables, such as the written premium volume, adjusted loss ratio, premium growth, stop-loss limits, and coverage lines.<\/p>\r\n\r\n\r\n\r\n

The results should show you the monthly and contract year-to-date supplemental income your agency has generated, as well as what income you can still achieve before the end of the contract term. The goal is to earn your agency\u2019s full incentive capture rate (ICR), which equals your total projected bonus divided by your total eligible premium. Another key performance indicator (KPI) to follow is your premium efficiency rate: the percentage of eligible over total written premiums.<\/p>\r\n\r\n\r\n\r\n

Where to go from here?<\/strong><\/h2>\r\n\r\n\r\n\r\n

These metrics should give you clear insight into the next steps you need to take: What policy types should your producers focus on writing? What carriers offer the greatest remaining income potential, and which ones may be nearly tapped out? How should you be focusing your marketing efforts?<\/p>\r\n\r\n\r\n\r\n

While these steps will vary from agency to agency and even month to month, there are a few broad strategies you can take to maximize contingency income:<\/p>\r\n\r\n\r\n\r\n