There is one over riding complaint that I hear from almost every agent this year. You are frustrated with the reduction in commissions, whether due to cuts by suppliers, the impact of clients buying cheaper trips, or the rise in Non Commissionable Fares (NCFs). Despite seeing an increase in the number of policies sold this year, I am still baffled by the overall sales closing ratio for many agencies remaining so low. In 2007 the United States Travel Insurance Association (USTIA) found that travel agents only sold third-party travel insurance 30% of the time–30%!
In today’s market it is remarkable to see the amount of insurance commission that travel agents still leave on the table despite their business challenges. You face shrinking commissions, increasing NCFs, and concerns about the financial instability of many tour suppliers. Read the rest of this entry »