Author: Mirza Baig
While generic Incentive Compensation Management solutions offer commissions and bonus calculation along with other features, insurance industry-specific solutions are a perfect match for carriers to manage their unique business needs.
With the increased competition, ever changing regulations as well as the operational costs that chew-up margins, carriers are looking for ways to address key challenges. Some of these are overcoming the compensation and bonus errors, agent compliance tracking and verification, lack of performance visibility, and increased maintenance costs of siloed legacy systems, just to name a few.Industry know-how makes software vendors the experts with deep understanding of your operational business processes, offering vertical solutions to address pain points and challenges. Some of the key benefits realized by implementing a solution, like CallidusCloud Insurance ICM and SAP Agent Performance Management, are:
- Maximizing agent performance
- Improve Onboarding effectiveness
- Refine Sales Execution
What exactly does it offer?
Modern Insurance Incentive Compensation Management cloud solutions not only manage the end-to-end producer lifecycle but can also support very advanced incentive management processes, as well as comprehensive onboarding functionality. Using an integrated workflow engine, it can automate producer onboarding, administration and credential checking.
Credential checking can be automated through integration with the National Insurance Producer Registry (NIPR), the Depository Trust and Clearing Corporation (DTCC), and the Financial Industry Regulatory Authority (FINRA).
Insurance carriers can speed-up onboarding with electronic contracting and track status with built-in checks. Producer lifecycle management helps gain visibility into the entire book of business, streamlines communication with agents, and establishes a centralized repository for all producer-related information, reporting and compliance data. It supports unlimited rules-driven hierarchies and reporting structures and offers a Producer Portal as self-service application to provide relevant insight.
Advanced incentive management enables carries to design, distribute and model agent compensation plans to unlimited payees (vendors). It improves sales performance by offering simplified pay-for-performance plan design and unlimited rules-driven commissions and bonus plans. It also provides the ability to manage client-defined performance metrics, advances, earned vs. unearned commissions, debt management and more.
Insurance companies can be confident that they’re getting a proven industry-specific solution. Some of the quick gains that are immediately realized:
- Onboard and end-to-end producer life-cycle management
- Build better producer relationship
- Facilitates accurate compensation with transparency
- Manages dispute resolution
- Scalable, future-proof cloud solution that drives sales performance
- Increased revenues and growth
Carriers today must rethink and realize that one-size fits all concept doesn’t work well for insurance companies that have unique processes, audit, and compliance requirements.
Modern cloud solutions, such as SAP’s CallidusCloud Insurance ICM and SAP Agent Performance Management, offer this insurance agent management and commissions/bonus management as one pre-packaged solution. Together with the workflow tool, it provides comprehensive onboarding functionality as well.
Carriers can establish a single source of truth and manage the entire producer lifecycle with full visibility and embedded reporting.
These specific functionalities only come with strong industry expertise and years of experience developing software, around those niche business challenges.
Learn more about the author, Mirza Baig.