TECHNOLOGY
Digital Distributor for unlocking growth
No matter where you fall on the digital continuum , you are only as digital as your least digital partner .
Digital agencies have the potential to grow faster and increase revenue more than traditional distributors . Everything moves faster and further when the speed limits imposed by the drag of paper and human hands are removed . Implementation of automated processes and systems that are repeatable , error-free and fast , greatly increases the overall value of a digital MGA / BGA versus a more manually driven operation .
The many benefits of digital transformation include : Case management happens more smoothly and quickly Streamlined commission management Approvals for an ever-increasing number of simplified products can happen almost instantaneously Instant access to the data required to find real-time effective solutions to advisor and client issues , means service can be delivered anywhere , anytime
Challenges to maximizing growth
However , there are important factors , beyond technology and data , that distributors need to consider in order to realize the full growth potential of their digitalization efforts .
Digital tools are not enough
Charles Pedneault , Vice President , Insurance Distribution Solutions , Equisoft , is dedicated to solving challenges using technology within insurance distribution . With more than 10 years of life insurance & investment experience , he consults with financial institutions , BGAs , MGAs , and AGAs to optimize operations with digital transformation .
Most distributors were not ‘ born ’ digital . Almost all organizations are transitioning to a digital practice and are in different stages of that journey . That ’ s fine , because each further step you take towards full digitalization is another increment of efficiency , another level of cost-reduction and a further opportunity to accelerate growth . But keep in mind that , no matter where you fall on the digital continuum , you are only as digital as your least digital partner .
Consider , for example , the distributor that has embraced digital solutions for their agency management systems and advisor tools , but still receives policy applications by fax and works with carriers who don ’ t share their feeds . In each interaction with each of those agent and carrier partners , the workflow reverts to manual , even paper-based speeds .
The flow of data slows . The speed of sales is arrested as if someone applied the handbrake . Growth , in terms of new business processing , is held in check .
Compare that to the example of a distributor who has implemented the same digital solutions but then makes it a matter of policy to work only with partners who will interact with them digitally . Advisors complete and submit apps electronically , carriers share client data and approval information , allowing information to flow where it is needed . In this case , the agency is able to communicate the status of every transaction , at any given time , to all stakeholders . Onboarding , client service and advisor management now happen in real time , every time . And the potential for the acceleration of new business development is fulfilled .
36 Perspectives Q3 2021