Today’s insurance market is fiercely competitive, prompting carriers, agents and brokers to look for any possible advantage when selling group insurance products. Because several key customer segments are cost-prohibitive to approach, carriers and brokers must identify the most cost-effective ways to capitalize on these and all segments of the market.
In addition, many insurance carriers face challenges associated with manual processes for quoting, rating, underwriting and enrolling group insurance business. Often, there are as many as 10 “human touch points” in the sales cycle. These manual processes are labor-intensive, costly and are often the deciding factor as to which markets to focus on. Carriers are also under scrutiny from shareholders to cut costs and increase the bottom line. In response to all of these pressures, carriers must simplify and automate business processes to achieve seamless data flow through the organization.
Business Process Management
Business process management (BPM) is a growing and critical discipline by which companies can boost productivity and identify business bottlenecks.
What Your Peers Are Reading
An area that can benefit from BPM is sales automation systems. Sales and service automation solutions enable insurers and intermediaries to streamline the process of quoting, enrolling and renewing insurance in order to increase efficiency, customer service, revenue and profits–making it easier to take a prospect from proposal into enrollment while being in control of the distribution and underwriting.
A majority of insurance carriers have difficulty managing the quoting and enrollment processes for tens of thousands of quotes per year for group life and health products. They need to identify solutions designed to improve business process management and increase sales by automating the entire sales process from prospecting through enrollment and ultimately renewal for the group life and health market.
By using solutions that separate business rules from system rules, insurance carriers can automate day-to-day decisions and processes, enabling speed, agility and consistency without sacrificing underwriting integrity.
Automating sales and service processes delivers increased revenue. Sales and service automation solutions and straight-through processing simply allow carriers and producers to achieve their main objective–to write more business in less time–by:
Reducing sales cycle time.
Increasing RFP response rates.
Increasing conversion and closing rates.
Decreasing discount rates.
Increasing group premiums and deal size.
Decreasing customer churn.
Another key benefit of automating the business processes that surround quoting and enrollment of group benefits products is the elimination and significant reduction of costs associated with generating a quote. These costs include labor, business process overlap, capital equipment, consumables, legal expenses and working capital. The contribution of greater efficiency cannot be minimized.