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.
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.
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.
Are you ready to embrace the change?
- Business Processes
- Access to Data
- Brick and Mortar
- Beyond Face to Face