This post is part of a series sponsored by AgentSync.
Historically, carriers have tended to treat compliance as a series of checklist items that must be done. But by changing your mindset to see compliance as a function of high-level business data that is automatically integrated into your entire application, you can reap many benefits.
Here, we've listed some common use cases for how carriers can use compliance data for leaner, faster, less risky, and more profitable businesses. There may only be seven here, but the ways you can use this data are endless once you decide to shift your mindset from seeing compliance as a list of process steps and instead see it as an opportunity to mine your data. used in business decisions.
No.1 Stop violations before they happen
Perhaps most obviously, baking NIPR-acquired data into your team's decision point can de-risk your business and end up wasting time accidentally green-lighting impossible situations. Commission payments can greatly benefit from this automated data. Another good use case: Carrier call centers that use license and appointment data to automatically place location-based calls only to a manufacturer who is properly licensed and designated to discuss products with a potential customer.
No. 2 Compliance data as cost-saving tools
If you are tired of continuously appointing every manufacturer who raises their hands, you can use compliance data to get more savings for your business, but one simple application that saves appointment costs.
Use appointments that are on time
If you're looking to increase compliance data to save costs, one obvious choice is to leverage your organization's ability to use Just-in-Time appointments. These legal provisions allow carriers to stop reporting appointments – and paying for them – in many states until the manufacturer has written business.
Since most designated states require individual-level appointments, waiting to process appointments on both a manufacturer-to-manufacturer and state-by-state basis can save you hundreds of thousands of dollars depending on the size of your distribution channels.
Eliminating appointment renewal costs for non-productive producers
State appointment renewals may be annual, biennial, or other forms depending on the states in which you serve. But getting a list of those producers you need to cut in which states before the deadline can be a race for hours of manual reporting. If you have accurate data built up and down your systems, generating a report on who is writing business and where it should be hot air, it can also save you thousands of dollars in renewal fees.
No. 3 Calculate the true ROI of your producers
If you operate in all states, you have the problem of not only choosing the manufacturer, but also having to choose them in all the states where you supply the products. By combining your policy management system data with licensing and appointment data, you can see the true cost of what you're paying not only your agency partners, but also each level's producers and what they deliver in return on a state-by-state basis.
For example, someone who is a big player in Kansas might waste money on an appointment in Nebraska. Or you may have recruited 60 producers to an agency only to find that more than half of them are not writing your business. This individual-level data is critical to understanding whether you have a key agency partner, or one or two key manufacturers. It can also make it much easier to negotiate contracts during renewal when you can arm your recruiting teams with concrete data about what each manufacturer and agency has to offer your business.
No. 4 Using compliance data as competitive data
If you draw data from an industry truth source, you can set your system to specifically look for hard data pieces that are just about compliance. Or you can expand your data set to include the type of information that gives you the intel key. Ex:
- Individual-level license data can tell you which licenses your manufacturers are not selling you
- Manufacturer's warranty lines can give you insight into what other products are sold by your manufacturer
- Comprehensive appointment data tells you which other carriers your producers work with for valuable competitive data
This type of data can help you make important business decisions about mergers, acquisitions, product expansions, competitive moves, and regional sales without second-guessing your strengths or relying on gut feelings.
No. 5 Reducing the risk of your sales force
It's no secret that the industry is going through a transition as current manufacturers take on ever-growing books of business as their younger compatriots retire and grow into business. But even today's great producers will retire.
Now, we're longtime proponents of the idea that paper-cutting and manual processes are critical to hiring small manufacturers, and industry research shows that small manufacturers are more comfortable with self-service options and often hate repetitive copywork. And you can't leave your current major manufacturers whose definition of white glove service may include superior interpersonal communication.
But often insurance carriers don't even understand the true makeup of their sales force. Looking at manufacturer data and seeing who your top sellers are and estimating the median retirement age percentage can help you figure out how to prioritize your manufacturer recruitment and retention strategies.
No. 6 To increase the knowledge of the institution
Internally, you may face similar risks in the threat of retiring manufacturing workers. If you're like most carriers, you have one or two compliance or operations managers who know what they're doing, and they're constantly training and retraining the green team. You may run the risk of losing all that information when they retire or move away.
If you can support more institutional information such as data points within your business systems and tools, you can shorten the training time required to onboard new employees.
No. 7 quick pivots to changing economic or regulatory conditions
Unprecedented regional fires. Probable controls. Market decline. These are all situations that require organizational level pivots and product innovations and make all the dead weight in your proverbial ship a threat to your profitability and profitability. If every change needs to be made manually, you're in trouble.
Easy access to data about product lines, appointments, individual licenses, and intellectual property can help you weather market and regulatory shifts.
AgentSync transforms compliance with better data
Geico is publicly trying to reduce its 600-plus technology systems to something closer to 20 by using cross-system integration to get better data. And they are far from each other.
Because AgentSync is built on cloud infrastructure and uses APIs to transfer data across systems, we are able to connect to other business-critical systems and surface the data you need to make decisions. But don't take our word for it – learn from our customers themselves about how they use AgentSync solutions to grow their businesses more effectively. And if you're ready to start thinking about how we can help, start with a demo today.
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