Incentives in Insurance

Incentives in Insurance

THE Compensation analysis of the INSURANCE SECTOR

Submitted by:
Ankita Sharma

Topics covered:

1. Incentives –benefits to business & staff
2. Incentive problems
3. Insurance sector in brief
4. Avg salary based on expernce
5. Entry level compensation
6. Managerial level compensation
7. Actual figures of avg salaries wrt various designations in some companies

An incentive is any factor (financial or non-financial) that enables or motivates a particular course of action, or counts as a reason for preferring one choice to the alternatives. It is an expectation that encourages people to behave in a certain way
Incentive awards are a way of rewarding employees and others with cash, goods or holidays rather than increases in pay. Awards may be linked to sales performance, good timekeeping, safety or production records, or may involve participation in a lottery or prize draw. 

Benefits to the business

An effective system of incentives could help:

• persuade staff to join your business
• retain existing staff
• increase staff motivation, morale and loyalty
• boost productivity
• link individual and business performance
• focus employees on achieving targets
• build teamwork
Some incentives and perks may benefit your business indirectly, eg free health assessments may reduce absences.

Benefits to staff

Perks and incentives can form an attractive element of an employment package by:

• enhancing the quality of working life
• rewarding staff efforts
• adding value to the employment contract

Incentive problems

Incentive structures, however, are notoriously more tricky than they might appear to people who set them up. Human beings are both finite and creative; that means that the people offering incentives are often unable to predict all of the ways that people will respond to them. Thus, imperfect knowledge and unintended consequences can often make incentives much more complex than the...

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