Insurance industry has been in the doldrums, especially when it comes to increasing competition. As a result, insurers focus on cost effective operations without losing the “human touch”—especially in readiness for the omnichannel era which uses a mix of digital and physical touchpoints. Digital Distribution Transformation fulfils these requirements for insurers, even as it ushers in multiple cost efficiency gains.
In this thought leadership post, we explore the key cost efficiency gains that come with Digital Distribution Transformation. Read on for the four ways in which Digitial Distribution Transformation initiatives reshape insurance distribution—with a focus on optimal costs.
Gain #1
Close sales faster
Leading insurers rely on digital distribution transformation to ensure faster sales closures. End to end digitalization of manual processes are the key cost efficiency drivers on this front. Significant benefits of such initiatives include capabilities like instant product illustrations, quotes, field underwriting, and payment processing.
To start with, an extensive sales engagement tool streamlines the entire sales cycle. It equips the salesforce with detailed information and decision-making capabilities to manage every customer objection. This minimizes delays in resolution of customer queries, quote generation, and service delivery.
For example, the SymbioSys portfolio’s powerful sales enabler tool delivers capabilities that cover the entire sales cycle—right from lead activity to collateral management, Financial Need Analysis, product recommendations, sales Illustrations, and solvers. e-Application features like document submissions and signature captures free up agents even as it ensures accurate data processing. Field underwriting and straight through processing ensure hassle free interactions with lesser visits.
Gain #2
Differentiated rewards optimize resources
Traditional spreadsheet-based or manual compensation management processes fail to account for the 80-20 rule. Insurance leaders leverage Digital Distribution Transformation to reward and recognize their top 20% of performers who bring in 80% of the business’ revenues. Such measures ensure significant cost efficiencies due to the right resource and recognition allocations.
Differentiated capabilities on fronts like compensations, service, and payouts are essential to drive effective reward management initiatives. A case in point is the use of tiered commission structures or bonus schemes which ensure higher rewards for outstanding performers. This ensures that the available budget allocations are allotted optimally. In this context, automation of commission calculations is critical to streamline the management of aspects like commission rules, overrides, and chargebacks. Digital Distribution Transformation fulfils these needs for Insurers.
Innovative compensation capabilities are a direct offshoot of Digital Distribution Transformation. For instance, Liberty General Insurance configures key performance indicators that improve effectiveness and facilitate tailored compensation models for top-performing agents with the help of SymbioSys Compensation Management. The insurer is also able to provide a wide range of payment frequencies (daily, weekly, bi-weekly, or monthly) for different channels and distributors.
Gain #3
Ensures data driven decision making
Data driven decision making is the next step of every insurer’s cost efficiency gain roadmap. Digital Distribution plays a significant role on this front—especially in terms of sales performance, compensation, contests, and distributor management. In addition to optimal resource management, insurers leverage the immense potential of these initiatives to minimize risks and maximize investment returns.
Real-time data and advanced analytics equip insurers with extensive insights. For instance, a close understanding of market trends and customer behavior aid highly targeted product creation as well as customized pitches. These benefits extend all the way to accurate underwriting and claims processing cycles that reduce losses.
The story of how Indian insurer Bajaj Allianz General Insurance streamlines underwriting and claims processes is a notable example. In this case, the insurer empowers customers to manage the underwriting process to create an efficient and transparent experience. Such digitization enables producers with the capability to issue a substantial number of insurance policies in a faster manner.
Gain #4
Accelerates self-service and onboarding
Digital Distribution Transformation brings in robust self-service options for producers with a distributor management portal. Such a consolidated platform enables insurers to ensure distinct experiences for distributors and agents.
A dedicated distribution management portal equips the salesforce with extensive information access and tools to ensure ready, accurate responses for every customer query. This is made possible with real time integration, data consistency, third party insurtech services, and centralized process management. It also equips insurers with extensive sales process monitoring and management capabilities for maximum optimization.
Simplification of processes to ensure faster partner onboarding processes is another positive outcome of Digital Distribution Transformation. When used in conjunction with a comprehensive digital onboarding platform, this accelerates distribution network expansion. Such options enable partners to submit documentation online for quicker approval turnarounds.
The immense cost optimization possibilities of Digital Distribution Transformation call for the right expertise. This is where our veteran team steps in. With customer implementations that span across 12 countries, C2L BIZ has successful relationships with over 40 leading insurance carriers. You can rely on this rich expertise to chart out your business’ new distribution success story.
Contact us on [email protected] for a comprehensive Digital Distribution Transformation consultation session that suits your insurance business’ needs.