Accurate, Accessible Data Critical to Insurance Compensation Management
A recent article in Insurance Networking News pointed to the need for data quality and accessibility in the insurance industry. While the article was focused on the implications for risk management, the need for clean, accessible data is also paramount to effective compensation management. Comprehensive data used in the right way helps to precisely analyze commission payment data and reassess incentive plans along with changing market scenarios.
From a management perspective, precise analysis of commission spending is necessary to reduce company expenses and enact competitive initiatives. The article states, “Having data that is reliable and not error-prone is critical to minimizing risk in our increasingly competitive sector. A key element to reducing errors is automation between systems. When data is entered once and automatically transmitted throughout systems, manual errors are greatly reduced. A way to accomplish this in the area of compensation management is with the integration of a Customer Relationship Management (CRM) system and the commission processing system.
Within the CRM system, producers enter data for contacts, leads and opportunities, and follow a simple process for tracking the progress of a sale from initiation through closing. When a sale is completed, the commission system is automatically updated to instantly process commission payments.
With this technology in place, management teams can access high quality data in real-time in a single window. This helps in generating accurate ad hoc reports to analyze channel and product performance. The article quotes Great American Insurance CIO Piyush Singh saying, “Quality goes down when we don’t analyze the data well”. This problem is avoided when managers can perform an accurate analysis of the data needed to remodel incentive plans, measure sales effectiveness, and evaluate sales potential.