Agent Commissions Rise For Annuities in 1Q

May 29, 2018 by Cyril Tuohy

Here’s some good news for agents selling fixed annuities: the products paid a bit more in the first quarter than they did last year.

The difference was slight, and probably not enough to pay off the mortgage.

But small numbers add up, particularly when overall sales volume jumps, as it did for indexed annuities this quarter, according to Wink’s Sales & Market Report.

• The indexed annuity commission received by the agent averaged 6.26 percent of premium for the first quarter of 2018; an increase of 0.13 percent as compared to last quarter. In the first quarter of 2017, average indexed annuity commissions were 6.2 percent.
• The fixed annuity commission received by the agent averaged 4.18 percent of premium for the first quarter of 2018, up 0.13 percent compared to last quarter. In the first quarter of 2017, average fixed annuity agent commission was 3.9 percent.
• Average agent commission on a multiyear-guaranteed annuity (MYGA) was 2.29 percent of premium for the first quarter of 2018; down 0.11 percent compared to last quarter. In the first quarter of 2017, average MYGA agent commission was 2.3 percent.

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Originally Posted at InsuranceNewsNet on May 25, 2018 by Cyril Tuohy.