Celent Says

Vertafore’s Move Helps Insurers Gain a Bigger Piece of a Smaller Pie

Mike Fitzgerald
Insurance Experts' Forum, August 26, 2011

Vertafore’s purchase of Kaplan Compliance Solutions is another step toward delivering on the ease of doing business promise to insurance distribution professionals. It is an indication of the consolidation of vendors along vertical lines as providers deliver solutions that can solve multiple problems in producer management.

Managing the insurance distribution chain involves disparate administrative functions such as configuring compensation plans, administering payment and reconciliation, registering and licensing of producers and tracking education requirements. To a producer, all of these tasks are part of a single process — maintaining and growing a critical relationship. However, in a many insurance companies, multiple departments perform separate tasks in the chain. Systems and work processes have been separated according to history and habit.

When service issues arise, agents are not interested in knowing that different people are handling different parts of the process using systems that do not “speak” to one another. They would like their commission or licensing or education inquiry to be resolved immediately with as little time investment as possible.

In the New Normal environment of a low-growth economy, it is critical to increase production within existing agents (keep them happy), necessary to expand into new channels (bring them onboard quickly and with minimal hassle), and essential to monitor performance of all sales activities (know who is doing what and take action appropriately). Celent believes there is an opportunity for insurance companies to gain market share through the execution of a strategic approach to producer lifecycle management. Carriers can gain competitive advantage in their distribution efforts if they bring together and consolidate these various processes to create an integrated approach that delivers higher quality service, more reliable information, and lower costs.

Accomplishing this goal will require process optimization and integrated automation. In order to meet these objectives, leading insurers will manage producer relationships in a more holistic manner. Vendors will continue to consolidate, form partnerships, and build solutions which facilitate these process changes.

This blog has been reprinted with permission from Celent.

Mike Fitzgerald is a senior analyst in Celent's insurance practice, and can be reached at mfitzgerald@celent.com.

Readers are encouraged to respond to Mike using the “Add Your Comments” box below.

The opinions posted in this blog do not necessarily reflect those of Insurance Networking News or SourceMedia.

 

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments...

Already Registered?

If you have already registered to Insurance Networking News, please use the form below to login. When completed you will immeditely be directed to post a comment.

Forgot your password?

Not Registered?

You must be registered to post a comment. Click here to register.

Blog Archive

Despite Valiant Efforts, Insurers' Consumer Ratings Drop

Insurers also are confronting waves of disruptive changes, including big data analytics, an aging population, ongoing economic uncertainty and the growing frequency and severity of natural disasters, which threaten to challenge and undermine businesses.

Why You Can't Take a Wrecking Ball to Your Legacy System

If you think of enterprises like collections of neighborhoods that need to be nurtured, you quickly see that architecture, not obliteration, is the key.

The Apple Bounce: Are Wearables Truly this Big?

I just donít believe it; only 720,000 Androidwear watches were sold in 2014. Apple has been amazingly successful in so many markets. Were they always first? No, a lot of products before. Were they always best? Again, no, superior devices have fallen.

Ten Stats About Social, Mobile, Analytics, Big Data, Cloud and Digital

Deployment rates have grown in the year since Novaricaís last study on these topics.

Trends in P&C and L/H/A Policy Administration Systems

Novarica research shows that nearly 40 percent of P&C and life/health/annuity carriers are currently replacing or planning to replace a policy administration system.

How Quote Data Can Deliver Powerful Business Insights

Quote data often is disregarded due to its volume, but properly managed can offer insights into product and pricing strategy, expense control, cross selling and upselling.