Dynamic, agile, and intense—these terms best describe today’s insurance markets. So, how can insurers prosper in this disruptive digital age? We require a quick overview of the present competitive landscape before an analysis of this complex scenario.
Insurers face shifting goalposts in terms of meeting an increasingly demanding customer base’s needs. With their high expectations from each product and service, these informed customers expect businesses to cater to their every need 24/7. When coupled with the diverse customer demographics, these pose daunting challenges.
Today, modern insurance buyers demand real-time sales and comparison tools that help them make informed decisions. These buyers prefer helpful yet non-intrusive advisory services and customized packages that cater to specific requirements.
At the same time, the insurance industry faces new challenges to its distribution and business models. The emergence of single-stop, comprehensive insurance, and financial product purchasing options from platforms like Amazon, Google, WeChat, Jio, or Waterdrop, as well as insurance aggregators like Policy Bazaar and Pasar Polis, are significant disruptions. The threat is further compounded by recent entrants in the form of digital insurers, embedded insurance, peer-to-peer (P2P) insurance, and entirely new channel models.
Omnichannel insurance distribution requires hybrid matrix structures and key performance indicator (KPI) measurements. This is inevitable since the split value chain creates new customer-owners. In this context, insurers must be able to easily zero in on product channel segment strengths. Recruitment and motivation of key producers also poses major challenges to insurers at this point.
Increasing regulatory scrutiny creates another set of issues for insurers. Recent regulations focus on stricter process compliance and higher transparency. These call for systemic tracking, process refinements, built-in controls, and change management.
Such pressures underscore an urgent need for business and technology capabilities to stand up to the competition. Automated data is critical, especially to power bots and self-service apps. A case in point is the use of smart devices for business empowerment. Or it can be in the form of artificial intelligence (AI) and analytics for process improvements.
End to end Digital Distribution Transformation fulfils the insurance industry’s need for ‘Digital First’ and omnichannel insurance models. It lays the foundation for optimal implementation of automation, advanced analytics, and AI. In this context, the four key Digital Distribution Transformation capabilities that every insurer needs in the digital age are as follows.
Capability #1
Extensive business insights
Insufficient business insights and the resultant lack of decision-making capabilities are a common challenge faced by most insurance companies. This is especially the case when it comes to critical areas like sales performance, compensation, contest, and distributor management.
Digital Distribution Transformation enables access to extensive data-driven decision-making possibilities. It leverages the power of machine learning, predictive analytics, data integration, third party data sources, and detailed dashboards for real time visibility into key metrics.
For instance, C2L BIZ’s clients leverage the power of Digital Distribution Transformation and highly customizable dashboards for insights about:
- Identification of new business growth and revenue streams
- Customized products and targeted campaigns
- Distribution management and optimization
- Multidimensional sales and channel performance monitoring
- Correlations between distributor performance and recruitment data
- Accurate financial need analysis and detailed sales illustrations
- Underwriting optimization possibilities
Capability #2
Rapid partner recruitment and management
Modern insurers leverage Digital Distribution Transformation to simplify partner onboarding processes. For example, a quicker onboarding process for partners and producers accelerates the expansion of their distribution network. A comprehensive digital onboarding platform that enables partners to submit documentation online for faster approvals goes a long way on this front.
Digital Distribution Transformation empowers insurers to prioritize and oversee contest launches. Such possibilities significantly enhance distributor engagement and incentive programs. Advanced digital tools also enable distributors to monitor their real-time progress, which empowers them with valuable insights.
Automation as part of distribution transformation improves operational efficiency and reduces expenses. Case in points can be automated underwriting processes or AI-powered chatbots that manage routine customer queries. Such interventions streamline operations and decrease manual workloads.
Capabilty #3
Differentiated and performance-based distributor management models
Effective insurance distribution management calls for an approach that simplifies and bundles custom made offerings for each partnership. Unique distribution models and channels are essential for such specialized product segments.
For instance, insurers can offer customized DIY product offerings that allow advisors to create protection or combination packages. These initiatives also call for advanced performance and compensation models that incorporate split reward systems to create optimal partner relationships.
Digital Distribution Transformation unlocks unlimited intelligent performance management capabilities. To start with, these include differentiated compensations, KPI tracking, simulations, and partner self-service portals. Performance monitoring and reward systems based on KPIs are critical elements of Digital Distribution Transformation efforts. Insurers achieve these objectives via real-time tracking of KPIs like STP closures, combination products, upselling, cross-selling, and loss ratios.
Capabilty #4
360° Sales cycle management
Productivity maximization is the natural step post partner onboarding. It calls for a comprehensive sales engagement tool that streamlines the entire sales process. These increase customer engagement and seamlessly address customer objections.
Digital Distribution Transformation ensures end-to-end empowerment for Sales with comprehensive advisory tools, intelligence, field underwriting, and last mile decision-making capabilities. These ensure quick and effective sales closures.
Dedicated support for distributors and efficient case management leads to substantial productivity improvements. At the same time, exception management and the freedom to make quick underwriting decisions in the field speeds up sales efforts. These advantages empower insurers to offer timely and proactive support to partners, regardless of the time or location.
The availability of compensation and performance review dashboards allows leadership to monitor vital metrics like sales quotas, individual performance vis-a-vis targets, and commissions. These inputs help streamline compensation and incentives. Additionally, gamification tools can be handy for motivating sales leaders and their teams. For instance, a gamification platform that rewards performance-based points or badges significantly enhances team engagement.
Seamless integration with distributors’ current tools and processes is another key advantage of Digital Distribution Transformation initiatives. This is essential to enable informed decision-making capabilities.
Accelerate your Digital Distribution Transformation journey with help from the experienced C2L BIZ team. With customer implementations that span across 12 countries, C2L BIZ has successful relationships with over 40 leading insurance carriers.
Contact us on sales@c2lbiz.com for a comprehensive Digital Distribution Transformation consultation session that suits your insurance business’ needs.