WIXLIB

CompassOne of the top 10 Insurance companiesin India use XoxodayInsurance AdvisorsDirect Sales TeamBancassurance TeamAbout the CompanyThe company is a Life Insurance Company that is a joint venture between a leading indian and global business group. Joint venture partner is worldwideleader in a insurance. The company offers life insurance products to retail and commercial clients. The company started its operations in India from lastdecade, it has 100 branches around the country.Background/ ScenarioThe company currently uses a CRM software to capture the sales achievements once policy is logged by the insurance agents. There are 2 types of datain this, namely, Insurance Login data and Issuance data. The incentive programs use rule engines that combine both factors since they are critical stagesin a sales lifecycle.These rule engines or simply put, complex calculations were done over spreadsheets by a dedicated 7 member team to calculate remunerations andfurther, performance rewards. Additionally, there is a chain of command with teams across Product (insurance), Design & Data to handle all theseresponsibilities with lots of redundancies. Essentially, the overall infrastructure to handle the incentives is massive with communication challenges andlapses which leads to a huge number of support issues. To handle these, they have a dedicated support team deployed across various hierarchy levels tohandle issues on mail and over WhatsappThe company needed a performance rewarding platform that automates the complex performance calculations, rewards and redemption. Theperformance calculations in the platform needed to take into account calculation using complex equations with multiple parameters - raw and derived.The agents are also offered an L&D app that gives effective tips in objection handling and complete details of the various products they have.Workforce CompositionTotal WorkforceComposition of the Sales Workforce50000 (Mix of advisors and direct sales)Group 1 : Insurance advisors, Direct Sales TeamGroup 2 : Location Heads, Branch managersCompass

User characteristicsGroup 1: Insurance advisors, DSTsInsurance advisors or Life advisors of the client are central to theinsurance sales. They are currently not permanent employees of thecompany, an incentive factor is hence critical.Tied to only one insurance companyDespite all the unpredictability associated with engaging an advisor,the advisers are tied to only one insurance company as mandated byIRDA.Group 2: Location Heads, Branch managersEngagement of agentsInsurance companies often find it difficult to control or manage theiragents. Agents are typically not open to sharing the details of a clientuntil the deal is closed, as they are concerned that the leadinformation may be misutilised. This lack of transparency restricts thecompany to track progress and improve results of their agents better& improve their results.The primary functions of Location Heads and Branch managers is torecruit, train and help the advisors achieve targets. Their sales targetsare cumulative targets of the insurance agents mapped to them. Thisgroup are full time employees of the insurance company.Unpredictable number of inactive advisers at any given timeSince the advisors are not salaried, they are not always active. As anorm, advisors are not constantly active until they start closing 4 to 5policies periodically, with constantly improving trends. Thus, theadvisors are connected with the company only at remuneration thusshowing the advisor the kind of money they can make is key for theperformance rewards to be effective.Key ChallengesWhile the final objective of a performance rewarding system is to improve the overall topline revenue that the insurance advisors bring in, this can seldombe achieved with a blanket strategy. It critically includes engaging the advisors at various levels of converting the customer and influencing theirbehaviours that lead to advisors logging in a policy. Infact, even the managers' sales incentives are mapped to the recruitment as well with specialconditions on joining, etc.Influencing behaviour change to aid performance improvementComplex performance programsThe company faces a significant challenge of engaging a workforcewho are non-employees. The company has negligible touchpointsduring the sales cycles of their insurance advisers because they areoff-roll agents. They needed a solution that would help them influenceand reinforce behaviours across the sales lifecycle. This reinforcementneeded to be achieved using nudges for micro-achievement, thatshall help their advisors close in on a sale efficiently.The company comes from an industry segment that requires complex rulesengines to define their sales performance programs. This complexity comesfrom the fact the industry has minimum product differentiation anddifferentiation is achieved through innovation in sales commissions that fitbusiness priorities. Thus the solution also had to have the capability of buildingthese performance programs with complex rule engines.Cascading the right information about performance rewardsIncrease the touchpoints of Insurance adviser with the companyContest rewards and commissions are strong pulling mechanisms forthe advisors since the monetary earnings are a key driving factor forthe advisor. A performance reward program needs to offer thefollowing:The other agenda of having a performance application is to improve thefrequency and quality of touchpoints the agent has with the company. Theplatform could help them with the following:1. The information on ‘how they can make money’ needs to be easilyavailable and even constantly made aware to them. Typically advisersgo to the ABM to find out if they are eligible for a contest, but aperformance reward system needs to get them a real-time update ontheir contest wins. Previously, Insurance agents had little clarity onwhat reward they are entitled to and what they have got.2. Domain specific knowledge is massive in this segment and is complex- rewarding and contests can become efficient tools to drive thecritical product knowledge.3. Sales of business critical products can be driven using performancereward programs.1. Update intermediary information about their sales pipeline and be rewardedfor it (No of sales meeting, open discussions, etc). Various stages of thesales cycle can be brought in under the Rewards system to ensure highefficiency at each stage of the cycle.2. A single place for advisers to come to see the information even and not relyon info they receive from other places - especially manual reports.3. Help advisers set goals and commit to a goal to go about their sales processin order to have better visibility on effort vs realisation.4. Earn incentives based on multiple and complex criteria such as below andstill be fully aware of each. Selling of Specific products based on the product weightage Selling of Increased catchment products (top of the funnel) Behaviour influencing factors - for overall funnel enhancementsStreak bonuses, based on type of clientele acquiredEase of renewals and adherence to standing instructionsReduced error rates in order to increase Logins to Issuance ratio.Compass

Incentive structureKey Goals & BehavioursBehavioural Games:Group 1: Insurance advisors, DSTs1. Performance based goals: No. of Policy logins No. of issuances Collected premiums2. Behavioural goals Persistency: Policy renewals Sales of key focus products Policies logging with Standing InstructionsIncentiveType ofbehavioral SlabsgameSingleWinningstreakGroup 2: Location Heads, Branch managers1. Performance based goals: Average collections per advisor Overall Persistency of advisors Branch activations Number of advisors reaching the goal2. Behavioural goals Retention of workforce Optimising the direct cost of hiring and trainingDescriptionSalesHNI product 3ErrorcheckSingleEnrolled policiesissued without error100%SIdebitSinglePolicies issued withstanding instructionsfor premium payments90%Rewarding LogicThe overall ‘key goals and behaviours’ is divided into smaller milestones. The individual target for the month is broken into weeks and are then broken intoprogressive milestones and incentives. Here is an example:Group 1: Insurance advisors, DSTsPerformance Games:Group 2: Location Heads, Branch managersIncentive EnrollmentsSlabsNotesIncentiveSlabsPercentage of businesstarget achievedBronze30K in premiumcollections withinthe first 3 days ofthe monthTypically a lowvalue to getthings startedBronze80-90Silver90-1001Lac in premiumcollections typicallyby 15th of the ficantAchievements& SignificantPayoutsPlatinum 120%PlatinumSlabs of 5-10L10L-20L and 20Land aboveExceptionalperformers &ExceptionalPayoutsSilverSpecial validation and gate criteria for all policy programs:A.B.Persistency value as a qualification gate for all incentive paymentsConsideration of variable credit depending on product line and productThe above program construct is useful to push the advisors towards certain favorable business behaviours. The position based incentives combined with aminimum criteria ensures that the advisors do not stop at the minimum criteria but continue selling . This program construct is based on a fixed budget as themaximum possible incentive payouts are fixed.Targeted programs based on target segments or products. Example: Sales of Health insurance products to certain age groups earn greater incentives thanselling the same product other age groupsThere are 3 additional [undisclosed] programs based on game-mechanics and productivity enhancements. The overall construct had the data populated is inJune 2020 (First week) and was launched in Aug 2020 (mid-month).Compass