Case Study
Company with Large Producer Force Cuts Commission Overpayments by $22 Million
www.optymyze.com Copyright © 2015 Optymyze. All rights reserved. Problems Producer commissions were being managed using a combination of legacy systems and manual processes. The company needed a compensation plan that more accurately reflected producer performance, but the changes could not be implemented within the existing system. Inefficiency and inflexibility were preventing alignment of compensation plans with corporate strategy, which created numerous problems, including: • The company was overpaying producers by $11 million per year because the incentive plans did not compensate for inflationary changes in premiums. • Management lacked visibility into producer performance due to delayed and uninformative payment reports. • The relationship with producers was degraded because