Distribution management solutions are used to manage the various aspects of channel relationships. There are three primary functions provided � compliance, compensation and contact management.
Distribution systems have much to offer, particularly for carriers who have complex distribution channel strategies. Consistency in assuring licensing and appointment compliance can help avoid market conduct fines. Simple processing of commissions and incentive programs can save internal time and provide an easy way of motivating producers to place more business with a carrier. And providing access to these tools via self-service capabilities meets a frequent request by agency principals. Lastly, modeling and analytical tools make it easy for a marketing executive to keep on top of how well a particular channel is performing for a carrier.
If you are considering a distribution system, as a first step, take a look at the market navigator I just published. It provides an over view of key features typically found in distribution systems � and highlights those that are more unusual. You will also find a profile on each of 15 distribution management solutions. If you are considering replacing your distribution management system, this is a good place to start doing your research.
See the report at http://www.novarica.com/distribution_management_2011/.
Novarica provides information, insights, and perspective on markets, operations, and technology to bank and insurance executives and project teams, through published research, retained advisory services, and project-based consulting. Novarica’s research includes market and trend analyses, best practices research, case studies, and independent analyses of software vendors serving insurance and banking. Novarica’s Insurance Technology Research Council includes CIOs and senior IT executives from more than 275 US insurance carriers. Novarica is a division of Novantas LLC, the acknowledged leader in customer science and revenue strategy in the financial services industry. www.novarica.com