| Efficient agency management is one
of the key considerations for any insurance or similar
services organization, as it has direct impact on
employee productivity. And, maximizing employee
productivity has a direct impact on the bottom line,
as it is seen that the single agency expense is
for all agency personnel, typically costing 52 percent
to 73 percent of revenue.
In general, owner and producer compensation is
between 25 percent and 35 percent of revenue;
office staff compensation ranges from 20 percent
to 28 percent of revenue; and, benefits and taxes
costs 7 percent to 10 percent of revenue. This
means if a firm can get more work done with same
level of employees, then the savings drop to the
bottom line. For example, if a firm can increase
revenues by 10 percent without increasing staff,
then that 10 percent is mostly profit.
With increasing pace of business and market growth,
it is common to find employees spending an inordinate
amount of time, trying to retrieve data, rather
than working with customers.
Sometimes, it is impossible for marketing representatives
to access the needed information to provide to
customers. Furthermore, company managers may not
have the information and tools to review and manage
field-marketing performance.
Cambridge Technology Enterprises (CTE)' Agency
Management solutions address this requirement,
and give the insurance company a clear view of
all agencies and loss ratio indicators. Even a
small percent reduction in loss ratio means additional
revenue added to the bottom line.
With the automation offered by the CTE’s
Agency Management solution, time spent on monotonous
data gathering can be leveraged for new business
development, and working with existing agencies
to improve the company's share of business. |
