Final answer:
Two effective ways direct writer insurance companies can encourage their sales agents to develop new business are by implementing performance bonuses and offering robust training and support, which incentivize and equip agents for success.
Step-by-step explanation:
To encourage sales agents in direct writer insurance companies to develop new business, two effective methods include:
- Implementing performance bonuses – By offering financial rewards for reaching or exceeding sales targets, agents are incentivized to attract new clients and expand the business.
- Providing limited training – This option is not an effective method to encourage sales agents. Instead, offering robust training and support enables agents to be more successful in developing new business, as it equips them with the necessary skills and knowledge.
Offering lower commissions or restricting marketing resources are less likely to be successful strategies, as they could discourage agents from putting forth their best effort in sales due to reduced incentives or a lack of tools to reach potential clients. In contrast, performance bonuses serve as a motivational tool that can lead to enhanced productivity and a focus on acquiring new business by providing a tangible reward for success. Hence, this method is one of the primary ways to encourage sales agent productivity and growth.