Moody's Looks At Career Agency System

National Underwriter Life & Health-Financial Services Edition, May, 1998 by MURRAY, M. CHRISTIAN

With demand for traditional life insurers need to streamline theirinsurance on the decline, in-traditional agency systems, and develop and enhance alternative distribution channels, according to a report by Moody's Investors Service.

The report, "The Changing Distribution Paradigm for U.S. Life Insurers," says insurers need to increase the productivity level of their career agents.

This can mean putting in place higher production requirements for career agents, said Patrick Finnegan, a New York-based Moody's analyst and co-author of the study. Additionally, it can mean changing commission structures-moving away from large, first-year commissions, toward the trail commission structure, Mr. Finnegan added.

According to the report, companies are no...

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