This post is part of a series sponsored by AgentSync.
Historically, carriers have tended to treat compliance as a series of checklist items needed to perform. However, with automation integrated throughout your operational systems, you can realize many benefits by changing your mindset to view compliance as a function of good business data.
Here we list some common use cases on how carriers can leverage compliance data to become leaner, more agile, less risky, and more profitable businesses. did. There are only seven here, but if you decide to look at compliance as an opportunity to mine data rather than a list of steps in a process, there are endless ways to leverage this data. For use in business decision making.
No.1 Preventing compliance violations
Perhaps most obviously, incorporating data from NIPR into your team’s decision-making points can reduce business risk and eliminate wasted time accidentally granting permissions to impossible situations. That’s what it means. Commission payments can greatly benefit from this automated data. Another great use case: communications that uses licensing and reservations data to automatically route calls based on location to only producers who are properly licensed and designated to discuss products with prospects. This is a call center for business operators.
No.2 Compliance data as a cost reduction tool
If you’re tired of proactively appointing every producer that comes up, you can use compliance data to realize a variety of cost savings for your business, but one that’s easy to apply is reducing appointment costs. It’s a reduction.
Operationalize just-in-time bookings
If you want to leverage compliance data to reduce costs, one obvious option is to operationalize your organization’s ability to use just-in-time appointments. These legal provisions allow carriers in most states to withhold reporting commitments and payment of their costs until the producer executes a contract.
Because most reservation states require individual-level reservations, waiting to process reservations both between producers and by state can potentially save you hundreds of thousands of dollars, depending on the size of your distribution channel.
Elimination of reservation renewal fees for producers who are not in production
State appointment renewals can occur on an annual, biennial, or other basis, depending on which state you operate in. But getting a list of which producers need to close in which states before the deadline can be a race with hours of manual reporting. Having accurate data factored into your system makes it easy to generate reports on who is writing your business and where, potentially saving you thousands of dollars in renewal fees.
No. 3 Calculate the producer’s actual ROI
If you work across states, you are faced with the dilemma of not only whether to appoint a producer, but whether to appoint a producer in every state in which you offer your product. By integrating policy management system data with licensing and reservations data, you can see the real costs you’re paying not just to your agency partners, but also to your individual producers, and what they provide in return on a state-by-state basis. cost.
For example, a top pick from Kansas State might be a waste of pick money at Nebraska. Or maybe you appointed 60 producers from your agency, only to discover that more than half of them aren’t writing your business. This individual-level data is important in understanding whether your company has a valuable agency partner or one or two highly valuable producers. You can also provide your recruiting team with concrete data about how each producer or agency contributes to your business, making contract negotiations much easier at renewal time.
No.4 Utilize compliance data as competitiveness data
If you’re getting your data from a trusted source in your industry, you can configure your system to only see the most stringent slice of data that’s only relevant to compliance. Alternatively, you can expand your data collection to include types of information that provide important information. for example:
- Individual-level license data shows where producers are licensed and unlicensed.
- A producer’s line of authority provides insight into what other products the producer sells.
- Broader booking data reveals which other carriers the producer works with for key competitive data.
This type of data allows you to make important business decisions about mergers, acquisitions, product expansions, competitive moves, regional sales, etc. without second guessing your abilities or relying on intuition. Helpful.
No. 5 Reduce risk for salespeople
It’s no secret that the industry is undergoing change as current producers take on an ever-increasing amount of business as their slightly older compatriots retire and age out of the business. However, even today’s super producers will retire someday.
Now, we are long-standing proponents of the idea that reducing paperwork and manual processes is key to recruiting young producers, and industry research shows that young producers are highly receptive to self-service options. , and generally dislike repetitive copy-and-paste tasks. Nor can we abandon our current super-producers, whose definition of first-class service is likely to include human touch.
But often, insurance companies don’t even understand the actual makeup of their sales force. Detailed analysis of grower data to see who the supersellers are and estimate the percentage of those near retirement is a way to prioritize strategies for grower recruitment and retention will help you understand.
No.6 Strengthening organizational knowledge
Internally, you may face risks similar to those of departing producer employees. Like many airlines, we have one or two compliance managers or operations managers who know what we’re doing, and they’re constantly training and retraining their green crew. You may run the risk of losing all of that knowledge when they retire or retire.
The more organizational knowledge you can support as data points within your business systems and tools, the faster the training period it takes to onboard new employees.
No. 7 Rapid pivot in changing economic and regulatory conditions
An unprecedented regional fire. Regulators need to prove something. Market downturn. These are all situations that require organizational-level pivoting and product innovation, with every dead weight of the proverbial ship threatening solvency and profitability. You’ll run into problems if every change requires a manual overhaul.
Easy access to data on product lines, schedules, individual licenses, and competitive information increases your resilience to market and regulatory changes.
AgentSync is transforming compliance through better data
Geico very openly is shrinking its more than 600 technology systems to nearly 20 by leveraging integration between systems for better data. And they’re not alone.
AgentSync is built on cloud-native infrastructure and uses APIs to send data between systems, allowing you to connect to other core business systems and display the data you need at the point of decision-making. . But don’t take our word for it – Read what our customers have to say Learn how to grow your business more efficiently with AgentSync’s solutions. If you’re ready to start thinking about how we can help, Start with a demo today.
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