Distribution Modernization
is here to bring change
to the Insurance industry.

Distribution Modernization

Insurance is changing. Fast.

Things have changed. From demographics of both producers and customers, to the adoption of a digital communication environment where more people share their life events with the world on social media, to the growing number of people willing to buy insurance over the internet, is forcing insurance companies to change their playbooks. Insurance Distribution Modernization is now the determining factor that represents a real competitive advantage for companies. Those that have started looking at their legacy systems and have begun a process of modernization will achieve greater levels of performance, operational efficiency, and ultimately revenue growth.

Multiple device support. Insurance  Software

According to a recent survey from Novarica -a research and advisory firm focused on the insurance industry- titled “Business and technology Trends: Personal Lines”, Agents want transactions to happen fast and easy, and customers want the same thing. This can only be achieved with sophisticated technology solutions that open the flow of information, reduce the time-to-appoint, increases channels of distribution, automates processes, speeds up transactions, offer portals for producers and customers, real-time analytics for management, and a true straight-through-process that must be accessible 24/7/365 across multiple devices (computer, tablets, mobile phones) using cloud technology. Indeed, Distribution Modernization is here, customers demand it, and VUE Software can provide it.

Revenue Growth Strategy for Insurance Companies

Some might be skeptical about modernizing distribution since current distribution models “have been working this way for a long, long time.” However, when looking at key business processes such as agent or advisor compensation, long gone are the days of a simple commission table that paid everything at a percentage of the premium. Nowadays, increasing complexities keep pushing operational costs higher for insurance organizations (across all insurance verticals). These complexities include multiple hierarchies, trailing commission management, clawbacks, draws, deferred commissions, contingent commissions, multi-tier, growth and retention bonuses, sales contests, commission based on deposit premiums, advanced commission and subsequent earn-rates/deficiency, generating audit trails and policy history, and even collect outstanding agent balances. The same applies for many of the processes in the insurance business: new producer onboarding, compliance, licensing, sales and marketing, billing, claims processing, and reporting.

Nonetheless, what does this mean for your company? The business case here is that all these changes have sparked a Distribution Modernization movement that represents an excellent opportunity for insurance companies to capitalize on a solid growth in revenue, and achieve operational efficiency with leaner processes by embracing technology solutions built for insurance.

At VUE Software, we know Insurance and we know your business. We believe in the power of driving growth strategically with software solutions built for your line of business: Life & Annuities, Property & Casualty, Health , and Non-Carriers. Solutions that can help carriers and non-carriers improve the ROI of incentive programs while reducing the cost of managing transactional compensation, improve retention of current business, expand distribution channels, sell more existing products to current policyholders, strengthen your brand and improve competitive positioning.

Insurers are still sharply critical of their own technology-enabled capabilities. Out of 16 core systems areas, insurers rate their own capabilities highly in only 4 or 5 areas on average.

Novarica research

Is Your Company Ready?
With a technology driven ecosystem, comes a completely new set of rules.
Are you ready to embrace the change?
  • Business Processes
  • Access to Data
  • Brick and Mortar
  • Beyond Face to Face
Old Way
Process based on paper, with limited to no support for multi-hierarchy commission systems, inability to personalize payment schedules or terms by agency, and manual vesting calculations. Processes are often lengthy and prone to encounter errors.
New Way
Use of automated tools to recruit, onboard, train and manage producers. The results are strong channel relationships, faster revenue generation, reduced administrative overhead, and errors.
Old Way
Use of legacy systems and traditional technology that makes clerical, technical and analytical tasks long and time consuming. These systems have limited access (if any) from outside networks and buildings. Distribution channel data is normally distributed across multiple systems creating a disparity of sources leading to inability to link information strategically with reconciliation tools to create commission reports.
New Way
The use of Analytics to provide a comprehensive & reliable single source of information Flexible tools for extraction, transformation & loading of insurance data. Dimensional, flexible, modular and scalable enterprise-wide data warehouse architecture with defined reporting packs to support enterprise insurance information needs. Use of Cloud Computing and SaaS accessible 24/7/365.
Old Way
Traditional approach is to have a large field presence of either employed (captive) insurance representatives or independent agents. Producers must try to differentiate their products even when there may be very few differences from company to company. Marketing materials often do not match the need of producers when ordering collateral for their sales and acquisitions.
New Way
By moving marketing materials into the cloud, carriers can improve both distribution efficiency to producers and full personalization. The use of multi-platform devices such as a PC, Tablet, and mobile phones, to access such materials increases the engagement with customers for better sales practices.
Old Way
Old acquisition model for insurance producers included growing their businesses through word-of-mouth referrals, traditional advertising, and cold calling.
New Way
Harnessing the power of analytics tools to interpret the data gathered from social media channels to increase customer engagement and improve acquisition and retention. Successful agents differentiate themselves by building social media best practices into their regular routine to prospect, connect, and grow their customer base.