Producer licenses have been so long that it is hard to imagine future national profits and losses easier (p&L). For institutions that automatically comply with dedicated insurance software, the first step towards true distribution channel management (DCM) is to connect your license data to production metrics.
Yes, the basic information is for your compliance team to ensure that your agency pays only corporate commissions for sale by properly licensed and appointed producers. However, a good distribution channel management software can leverage the API to map licensing and appointment data into your committee payment software and vice versa. This allows you to see the real ROI you want to get for agents and other downstream distributors.
Most agencies pay for licensing and renewals by agents. However, not all of these dollars are equal – some licensing fees are a total waste. Here are seven non-productive producers. With today’s DCM solutions, you can avoid these manufacturers and proactively limit their impact on the bottom line.
1. Insurance Professional Explorer
Call centers, especially seasonal call centers, such as those that sell Medicare during annual enrollment, are how many agents there are in the industry. However, licensing to train potential manufacturers in your call center can be hard because of insurance career “explorers”. Explorers will sit down through training, but they have two or three areas of busy or part-time jobs. They will be more interested. They will study the insurance test and may even pass it, but they don’t plan to equip the phone with long enough to make your investment in them realize.
Make fixed: By analyzing your bottlenecks, you can see who can complete the process of selling products and rearrange your onboarding to help explorers choose themselves before wasting permission.
2. Everything is in the kitchen-sink proxy
The agent will write down everything about any business. Maybe it makes sense that they live in Kansas, in the state, as well as Missouri, and even in Nebraska. But they also want to get a Minnesota license because they once had summers in Okechobee Lake and met a friend with life insurance. Or they obtained an Arizona license because they met someone who could use an annuity when their niece graduated. Their friends moved to Texas? Guess all licenses the agent will apply for next?
Make fixed: If your licensing fees are out of control, your business may need to provide more support to encourage inter-agency recommendations to encourage and incentivize new businesses while limiting the management hassle in the state and the cost of acquiring and renewing licenses, and producers will no longer write the business.
3. Multi-layer license collector
Multinational Insurance License Collectors don’t mind when states like California require their insurance license numbers in their correspondence, because seeing all of these numbers makes them feel important. Continuously expanding the list of states where you can do business is a priority. The growing list of statuses itself is the focus. Renewing these licenses is a focus for collectors, despite the fact that there may be no binding coverage in every state or even most states.
Make fixed: Using modern distribution channel management software, you can evaluate whether manufacturers consistently write enough business in a state to ensure renewal of licenses and, if related to maintaining the reputation or reputation of all of these licenses, you can have a conversation about needs and expenses to encourage producers to use these licenses in a timely manner.
4. Fees reporter
Fees reporters are paying their license independently and are reimbursed through Fees Reports. If you want to find out how many states they have obtained, you have to do some digging as they are buried in receipts and physical mail on the table. No transparency, but not hide Anything. …
Make fixed: If you implement a license using a single license and compliance information, you can run a single unified report to view the licensing and renewal costs of the producer each year.
5. Chaotic agent
Chaotic agents are always in their paperwork. Maybe they sell with customers, but follow-up, renewal and compliance are not within their scope. This means continuing education (CE) and renewal requirements within the week they expire, not very quickly. For an agent, chaos agents represent people who may be reliable sellers, but the late renewal and recovery costs hundreds or thousands of dollars.
Make fixed: Centralized compliance software that draws licensing data from industry sources can put the agent late in the right track – upcoming renewal ranges can be initiated until 90 or 60 days before renewal.
6. Hanging rack
They are figuring out the matter. They are starting. They will get something. They help office morale. Listen, it’s not that the hanger doesn’t bring some kind of Je ne se quois to the team, it’s that what they don’t bring is the actual insurance sales. This doesn’t mean they can’t be hired by agencies, but it does mean you shouldn’t pay for them to maintain licenses they don’t use.
Make fixed: If you can’t determine the actual ROI for each agent, you don’t know which agency might benefit from the rescheduling, so first connect the compensation data with the license data and then check the rest of the hierarchy of that agent to identify opportunities or red flags.
7. Rough diamonds
Rough diamonds are the next generation of super producers, but maybe they are hampered by poor training or bad advice. This is someone who demonstrates a commitment but does not post numbers in their sales space, and unless your agency provides them with the resources they need, they will “quietly exit” their business.
Make fixed: Similarly, by determining who is not performing well in the first place, you can start to determine how to help them improve.
“Cutting bait or fish”: Producer license efficiency with ActentSyc
Managing producer licenses with software has been an exercise in transitioning from chaos to calm, but it’s not just about knowing who got the license and where. Actentsync’s powerful reporting can also allow you to identify opportunities for producer improvement, or eliminate unnecessary licensing (and its fees) when the best answer is.
With the right distribution channel management software, you can identify these seven non-producers and without seeing a return on your business while you spend hundreds or thousands of dollars on your license, starting to address the core issues of agency profit and loss.
Learn more about Admentync with a demo today.
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