What Producers Want: Effective Distribution Management
It’s no secret that in order for insurance carriers to sustain interest among varied consumers, they must focus on innovative product offerings, take the products to market in real time and connect with consumers at a personal level. The key to achieving these goals lays in effectively relating to producers as individual members of a greater distribution channel.
There are many options for producers to choose from when deciding which products to offer and recommend. Therefore, to increase a carrier’s chances of maintaining mind share (and wallet share) with producers, it behooves the carrier to ensure that producers are satisfied with their association and actively selling products that are high-priority for the carrier. To achieve this, carriers need to employ the right strategy in distribution management to attract, empower and retain good producers.
Today, carriers are realizing the benefits of automating internal processes even and especially in the face of budget constraints. Effective distribution management technology makes it easy for a producer to do business with the carrier by providing accurate, timely payments and tools to increase sales effectiveness and access self-service information.
Thus, insurance companies who invest in new processes and technology for automating the sales process can see cost savings in many forms – including increases in producer retention. For career or captive models this is especially important, as the cost to recruit and train an agent entails a large investment.
Investing wisely on distribution management capabilities brings a guaranteed ROI by securing producer loyalty and mind share, as well as increasing career-agent retention and decreasing the amount of investments wasted on agent attrition.