Carrier persistency bonuses and how they change product choice

Some carriers pay a bonus on top of commission when your book's persistency stays above a threshold. It's real money, and it quietly changes what agents write.

How they usually work. The carrier measures 13-month persistency across your placed business, sometimes annually, sometimes on a rolling basis. Above the threshold, often in the high 80s or low 90s, you get a percentage bump on new business, a year-end bonus, or a higher commission level. Below it, nothing, and at some carriers a level reduction.

Why it matters. An agent writing with three carriers spreads their book, and each book is small enough that one lapse swings the percentage. Concentrating your clean cases with one carrier can push you over that carrier's threshold. Agents do this and it works, as long as the product still fits the client.

Where it goes wrong. Writing a client with a carrier because of your bonus when another carrier would give them a better rate or a level plan instead of graded. That's a suitability problem and it's the kind of thing that turns up when a client compares notes with a neighbor.

The persistency tools that actually move the number. Draft dates tied to the deposit, a call after the first draft, a call at month 11, and not overselling face amounts the client can't sustain. The bonus follows good practice; it doesn't create it.

Ask your IMO. Which carriers offer persistency bonuses at your level, what the thresholds are, and whether they're measured on your book alone or the IMO's. Some agencies see the bonus and you don't.

Are you tracking persistency by carrier in your CRM, and has a bonus changed where you place business?