Insurance Best Practices

Periodically Train Insurance Representatives in New Legal/Compliance Policies to Ensure Regulation Compliance Standardization

Best Practice (Good)

Ensure that all insurance representatives periodically undergo training to keep up with new legal/compliance policies and procedures. Automate enrollment procedures and provide with an online resource they can access to obtain any and all enrollment information and instructions. Ensure that representatives also have access to physical and online training materials so they can refer back to them when necessary.

Typical Practice (Bad)

Ensure that insurance representatives have access to consistently updated resources (physical and online resources such as links, manuals, printable handouts, etc.) concerning new legal/compliance policies and procedures. Additional training is unnecessary as it takes up the representative's time and costs the company money. It is the responsibility of the representatives to keep on top of new legal/compliance policies and procedures.

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Benefits:

Regular training not only ensures insurance representatives are kept up-to-date on current legal/compliance policies and procedures, but it also enforces policy compliance and standardization. Furthermore, insurance representatives will not be required to create their own "one-off" process compliance methods, reducing the confusion other representatives and customers (new and existing) may have concerning procedural practices.

Use a Set Number of Focused Metrics to Measure Insurance Sales Representative Performance

Best Practice (Good)

Use a set number of focused and clearly defined metrics that reflect functional efficiency, effectiveness and strategic value (Number of Calls Handled per Day, New Policies per Agent, etc.) to measure the performance of insurance sales representatives. Incentivize sales representatives by implementing financial benefits related to performance (i.e., higher commissions, bonuses, etc.). Provide frequent (daily, weekly), potentially even real-time, updates on performance levels across the insurance sales force.

Typical Practice (Bad)

Have Agent Revenue Production (sales force) managers hold ad hoc weekly or monthly 'huddles' to discuss the performance of insurance sales representatives. Use standardized checklists to track as many sales productivity metrics as possible.

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Benefits:

Using a set number of focused and clearly defined metrics ensures the efficient measurement of individual sales representative performance and allows sales managers to identify key differentiators between high and low performing sales staff. Ensure that only a set number of relevant metrics are being measured at the same time; measuring too many metrics bogs down the process (i.e., "analysis paralysis") and prevents managers from analyzing and resolving issues in a timely manner. By integrating financial benefits into representative performance, insurance sales representative are both motivated to work more efficiently and held accountable for their daily activity.

Use Web-based Forms for Customer Insurance Application Submission to Reduce Validation Cycle Times

Best Practice (Good)

Use web-based forms for customer insurance application submission. Require all fields within said submission forms to be filled in by the customer prior to submission to ensure that all necessary information is collected from the beginning. Forms that contain missing information should not be prevented from being submitted. Instead, ensure that a message appears within online forms clearly stating why the form is unable to be submitted as well as which fields are missing information. Data validation should be performed through an automated process such as browser-supplied form validation features (i.e., validation attributes on form elements within HTML5, JavaScript field validation features, etc.), and third-party programs. Ensure that the form is accompanied by the appropriate documentation directing the customer to accurately complete their submission.

Typical Practice (Bad)

Use physical customer application submission forms when possible and manually validate insurance application data through a visual scan of all submitted documents (physical or online documents). Manual overviews may ensure that certain errors are more easily identified and solved.

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Benefits:

Manual validation is not only time consuming, but it also does not always catch the errors that have been made by customers submitting application forms. As such, using online forms and automated validation features may prevent excessive errors and ensures that customers know what is needed to resolve identified errors. Complete and accurate application submissions may free up employees to conduct higher valued tasks (rather than spending time on correcting and verifying application data). Online forms should also use standardized checklists to ensure that customers can track what information is needed, and what, if anything, is still needed to complete submission. Should customers submit information forms with incorrect fields or missing documents, makes sure to word subsequent letters or communications clearly to outline precisely what is missing from the application so that the they can resubmit the information correctly/completely.

Implement a Periodic Training Program to Keep In-Force Customer Service Representative Skills Up-To-Date

Best Practice (Good)

Implement a program of periodic training for In-force Customer Service representatives that focuses on trending issues, less common situations that are not covered in the initial training, new customer service strategies, new products, competing products, and the efficient use of any newly added service channels (live chats, forum responses, etc.). Ensure that the training programs keep In-force Customer Service representatives up-to-date on the policies, procedures, regulations, etc. concerning the various products the insurance company offers (life, health, property & casualty, etc.) to reduce the need to transfer customer calls to another subject matter expert (SME). Provide representatives with online resources (typically provided through the company's Intranet, or similar) they can refer to when needed.

Typical Practice (Bad)

Train In-force Customer Service representatives upon being newly hired. It is the responsibility of the representative to stay up-to-date on new customer service strategies as well as information relating to the products the insurance company provides (life, health, property & casualty, etc.). Provide representatives with physical resources (brochures, manuals, etc.) they can refer back to when needed.

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Benefits:

Periodic training ensures that the skills and knowledge of all In-force Customer Service representatives are standardized and up to the most recent levels of quality as determined by management. This practice subsequently improves the quality of the overall customer service experience, reduces the likelihood that representatives with need to transfer or escalate their calls and encourages a dynamic, knowledge-seeking environment within the In-force Customer Service function.