Improve Productivity with Integrated Distribution Management Systems
Celent recently published a report that examines how insurers can achieve sustained profitability and growth through improved information sharing within distribution channels. Typically, the insurance industry is hampered by outmoded or disjointed technology systems that negatively impact access to information and coordination among different departments. When it comes to producer management, lacking appropriate information at a critical moment leads to delayed responsiveness, which does not sit well with producers. Delays may decrease producer productivity, which can directly impact the bottom line of the organization.
Luckily, insurers have many options when it comes to technology solutions to address these issues. The most promising vendors provide distribution management solutions that accomplish all of the tasks involved in the full lifecycle of the company-producer relationship by combining the capabilities of enterprise incentive management, licensing and compliance. These are integrated solutions that can carry out “producer management functions of appointment, commission, compliance and registration management,” along with support functions such as “document management, workflow and rules management. As a result of this convergence, Celent further expects to see increased integration and capabilities for self-service portals, as well as increased workflow automation.”
Improved coordination between the various functions involved in the producer management lifecycle ensures better producer productivity and customer service. This synchronization of information will also give a superior insight into producers’ performance for the management teams to better align the company’s objectives with producers’ incentives. Thus, coordinated information transfer and system integration empower insurance business users to achieve administrative efficiency, increase producer productivity and advance compensation strategy.
Mike Fitzgerald, senior analyst with Celent’s Insurance group and author of the report, says“Distribution solutions that increase coordination and consistency improve agent service, decrease expenses, and attract business.”