How manual processes hurt insurance agency productivity

Even today, many distributors rely on ad hoc approaches and manual, spreadsheet-based workflows to execute some of their most crucial tasks, such as commission computation, policy submission tracking, and sales follow-ups. These tasks, which are vital to the agency's proper functioning and are performed on a regular basis, are taking too long, wasting resources, and delaying the pace of business. Because of the absence of digitalization, integration, and uniformity within the channel, the time it takes to accept new policy submissions is particularly problematic.

Manual processes prevent employees from focusing on higher-value, customer-focused activities. Client service becomes more challenging as a result. It also makes calculating and administering advisor commissions more difficult.

Manual workflows not only consume a lot of time and resources but also leave room for human error in data processing. As NIGO rates continue rising, both clients and advisors grow unsatisfied.

All this creates unnecessary frustration for distributors, carriers, consultants, and end clients.

Below are some of the key roadblocks carriers face with manual processes:

Roadblock 1: Visibility into the policy approval process is hindered by manual processes.

Most carriers still rely on too many manual procedures to handle new business applications as they migrate from advisor to distributor to carrier. This increases the overall time to issuance, as well as client frustration, which is carried over through to the?remainder of the channel. Advisors struggle with not knowing where an application stands in the process or why it has been delayed. Task assignment and follow-up are not automated. All of this adds up to an inefficient and frustrating?workflow.?

Ultimately, distributors who can solve for inefficiencies in manual processes will be the ones that succeed. Having real-time visibility on applications will significantly improve the policy approval process.

Roadblock 2: Inefficiencies are caused by a lack of centralized customer data.

Inefficiencies increase when manual processes are employed to transfer or store?data.?Unfortunately, many distributors still lack automated access to carrier data, which is essential to their operations. It's difficult for them to keep track of and monitor the progress of policy submissions in real-time.

For advisors, the lack of centralized?customer data from numerous carriers makes getting a complete idea of?a client's insurance products difficult and time-consuming. Advisors must log into each carrier's platform and navigate back and forth to find the data they require. It is a waste of time that they could be using to solve client problems and improve the customer journey.

Roadblock 3: Frustrations and delays associated with commission splitting can cause conflict and bottlenecks.

Commissions are a constant source of frustration for advisors because quick and accurate payment is not as accessible as they would want.?Significant barriers arise?when distributors and carriers do not share commission feeds and distributors do not have adequate commission management systems.

Complicated commission distributions between parties participating in a sale might be difficult to manage. Matching?actual commissions?with expected commissions can be hard to reconcile.??Advisors, like everyone else, are easily frustrated by payment?errors or?delays.?

In order to earn advisor trust and build stronger relationships, Distributors must regain control of their commissions by establishing sophisticated systems that automatically calculate and pay advisors accurately and on time.

It's time for a fresh approach to data centralization and policy approvals.

Distributors must discover solutions that will accelerate the digitalization of their operations in order to compete in the emerging independent channel. They require solutions that automate all essential operations, increase agent and staff productivity, minimize errors, increase efficiencies, and lower costs. The finest systems are management workhorses that provide total visibility into data and activities across the value chain to distributors.