How Do You Know If You Have a Compliance Downside?


This submit is a part of a collection sponsored by AgentSync.

Compliance and producer administration are just like the proverbial frog boiling within the pot. In case you walked in recent to a brand new group, disordered compliance practices, guide processes, and lacking producer knowledge could be horrifically obvious, like a waving pink flag. However once you’re struggling to maintain up with guide onboarding processes along with all the opposite issues required to do your job, these errors and knowledge gaps slowly construct till they’re overwhelming.

So, earlier than you’re a frog boiling alive in a pot of compliance points, how are you going to appropriately establish the chief areas of concern in your producer administration processes? And do you may have any concept methods to measure your individual success or failure?

Right here in your personal analysis, we’ve rounded up the highest three classes we use to guage the efficacy of a company’s compliance in addition to the factors we see organizations use to objectively measure outcomes. In case you can reply “sure” to all three questions, you may not have a compliance downside. For almost all of individuals working in insurance coverage, nonetheless, you might acknowledge a number of of those signs pointing towards your individual little compliance downside (keep tuned for methods to really resolve it!).

1. Is your compliance real-time, built-in, and automatic?

With knowledge that’s frequently up-to-date and built-in throughout your tech stack, your group could make higher choices at each stage of enterprise.

Nonetheless, out-of-date data weighs down your infrastructure. Compliance processes that contain delays, siloing, and guide inputs create numerous drag on inner processes for companies and carriers. As an alternative of having the ability to make well-informed, speedy choices, each resolution is burdened with guide knowledge verification or the danger of skipping needed compliance steps altogether.

It’s an open trade secret that guide processes, legacy techniques, and hours of emails and cellphone calls are how inner compliance groups at the moment deal with compliance. However it doesn’t must be this manner. Following are before-and-after profiles of companies that applied automated compliance options. If you end up figuring out with the “earlier than,” you possibly can be in want of a compliance improve:

  • BEFORE: The chief compliance officer routinely took work residence on weekends to take care of guide compliance within the state of Texas alone.
  • AFTER: He now retains the enterprise inside enterprise hours, managing producers in all 50 states in much less time than it used to take for a single state.
  • BEFORE: With two fulltime compliance officers, this enterprise nonetheless lacked readability about their compliance charge. As a enterprise with an aggressive development map forward, the manager group lived in dread of a state compliance assessment.
  • AFTER: They diminished each compliance officers’ workloads by 25 p.c, releasing them as much as leverage their data elsewhere for the corporate. One of the best half? With visibility into their very own knowledge, they moved from critical uncertainty about their compliance to having one hundred pc confidence that each sale is correctly executed by somebody with the suitable license and appointment.
  • BEFORE: One compliance officer mentioned a single new-hire class of brokers would require him to dam off two weeks for guide processing and knowledge enter.
  • AFTER: Your complete technique of onboarding a brand new class of brokers is 2 hours.

Do you acknowledge your self within the earlier than, or within the after? Do you may have entry to your compliance and producer knowledge on the level of decision-making, or does it require digging? Think about, what do these guide hours of digging to search out the suitable data value you each week? Yearly? As one AgentSync buyer mentioned, “We don’t invoice for our personal time, however the reality of it’s that the corporate was spending far more cash on me attempting to muddle by way of compliance than on AgentSync the place it’s now automated and easy.”

2. Do you supply a world-class agent expertise?

As retaining expertise turns into mission-critical, companies that empower their brokers with knowledge and self-service instruments put themselves in an advantageous place. It’s no shock that brokers worth their speed-to-revenue.

For companies that fail to understand the necessities of agent expertise, they’ll spend hundreds and even thousands and thousands of {dollars} on recruitment packages to draw skilled, respected downstream companions. However they’ll by no means see the ROI from that spend due to fixed churn, as brokers fall off in the course of the onboarding interval or quickly after.

Based on knowledge from a report AgentSync co-sponsored with analysis agency Aite-Novarica, having digital choices and speedy service are key in recruiting the subsequent technology of producers.

The examine reported 97 p.c of younger brokers noticed pace and time-to-quote as extremely necessary to inserting enterprise. But, 54 p.c of brokers reported their appointed carriers didn’t supply an internet or cell onboarding possibility.

Your compliance is perhaps a roadblock in attracting and retaining strong brokers if the next examples really feel acquainted:

  • BEFORE: One enterprise struggled with a median onboarding expertise that took weeks, typically even months. Though the compliance and operations groups knew from expertise that this was according to trade norms, the entire group was dissatisfied.
  • AFTER: With options that prioritize a world-class agent expertise, the start-to-finish onboarding course of turned a matter of days, typically even hours!
  • BEFORE: A compliance officer struggled with hours of guide work to onboard a single new producer.
  • AFTER: As soon as the enterprise applied trendy options, the identical result’s now a couple of clicks away.
  • BEFORE: With a earlier answer, a single agent’s title or handle change meant an operations group member searching by way of quite a few exterior state web sites.
  • AFTER: Brokers are empowered with agent portals and might management their very own data. Two-way knowledge syncs allow brokers to replace and proper their data straight as a substitute of trapping data in emails and voicemails and necessitating hours of guide intermediary labor.

The last word results of this emphasis on agent expertise is that corporations with automated compliance options retain good brokers. By retaining superior brokers, they spend much less on recruitment efforts, and as a substitute can thrive on referrals from already-excited current companions. As one AgentSync buyer mentioned, “Having knowledge instantly at my fingertips helps me shine, impressing my colleagues and our recruits alike.”

3. Knowledge intelligence to optimize distribution

We wish to have the ability to justify our enterprise choices with knowledge and enterprise intelligence, however, usually, our selections are made by intuition and intestine response.

In case your compliance and producer administration knowledge is tied up in spreadsheets and sticky notes, you then would possibly have the information to make clever choices, however soiled knowledge isn’t usable knowledge. As an alternative, you’re working at nighttime, probably losing hundreds of {dollars} in charges for pointless appointments or licenses, to not point out the danger of fines for opaque compliance practices.

Whereas the variety of companies that need to make good, data-driven choices is, we’d guess, close to one hundred pc, even carriers which have constructed their companies off long-term actuarial knowledge are at a loss in the case of their very own enterprise knowledge. Based on one examine, 75 p.c of economic and insurance coverage companies execs “are challenged by the fractured nature and huge quantity of information out there.”

That statistic isn’t an entire shock if you happen to’ve labored at a enterprise tormented by siloed, guide knowledge that lives on spreadsheets, private drives, emails, and sticky notes. The truth is, one trade blogger asserts “a staggering 88 p.c of company knowledge is sitting idle.”

However what if you happen to might entry and analyze your knowledge?

  • BEFORE: One compliance officer used to spend weekends manually compiling stories about the place his enterprise spent cash on licensing charges.
  • AFTER: With clear and accessible knowledge stories in a complete compliance answer, it takes him two minutes to generate a report that helps him optimize the charges for his enterprise. His enterprise is working leaner than ever, and he’s acquired his weekends again.
  • BEFORE: One compliance officer described her agency’s strategy to compliance as “continually reactive” as a result of the group had no alternative however to submit license functions to a state and wait to see if they’d missed key data.
  • AFTER: This enterprise has de-risked its distribution pipeline, was capable of switch a DRLP seamlessly throughout 50 states in lower than two weeks, and is now taking a predictive, strategic strategy to development. With lacking knowledge a factor of the previous, they’ll selectively apply for licenses solely in needed areas and divert enterprise to licensed suppliers in particular gross sales areas with out a flurry of cellphone calls.

With alerts set to flag solely functions that want consideration, compliance groups utilizing automated compliance techniques flush with knowledge not want to the touch each utility. In-good-order enterprise drives itself, leaving solely not-in-good-order paperwork and red-flagged enterprise for hands-on consideration, and permitting the enterprise to drill down into the information that issues.

Retaining on retaining on is slowly draining your online business

In case you’re treading (boiling) water with the inefficiencies of guide compliance and producer administration, we get it. Typically you’re barely retaining your head above the floor and survival looks like an accomplishment.

However barely making it isn’t what success appears to be like like. Groups that may’t take trip with out every little thing grinding to a halt aren’t groups that can provide their finest. Groups which might be making choices based mostly off what’s on fireplace proper now aren’t groups which might be planning for longevity.

So, consider what p.c of your efforts this week went to waste. Was it a traditional week? Take that quantity occasions 52, and that’s what your inefficient compliance is costing you this 12 months and yearly that you simply keep within the ever-hotter pot of hellish guide compliance.

Cease retaining on retaining on. It’s time for compliance that rocks, brokers who’re smitten by becoming a member of you, and enterprise knowledge that provides you an edge. It’s time for AgentSync.

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