5 Reasons to Centralize Your Compliance and Producer Management After an Acquisition

This put up is a part of a sequence sponsored by AgentSync.

For prime-growth insurance coverage companies and carriers, acquisitions are a core a part of enterprise enlargement. But, for those who don’t maintain your acquisition technique streamlined and environment friendly, you find yourself with an upside-down income mannequin.

One of the best ways to manage your prices and obtain your goal revenue margin is to centralize the core features of your acquisitions. This doesn’t imply all of your producers should put on the identical emblem—for some companies, it is going to all the time take advantage of sense for every downstream enterprise unit to keep up its personal tradition, taste, or “native” really feel. However, even when the branding and places of work stay separate, compliance and distribution channel administration providers are one thing it is best to centralize, full cease.

5 dangers of decentralized compliance and distribution associate administration technique

For those who don’t centralize some core features of what you are promoting and your whole subsidiaries (like, cough cough, compliance and producer administration), you handcuff the advantages of your acquisitions. Certain, new acquisitions will herald revenue potential, however, if there’s no effectivity good points, then that relationship will coast alongside on a set schedule of earnouts and it’ll take years so that you can truly see the return in your preliminary funding.

For those who’re not centralizing your compliance and distribution associate administration, particularly, you face 5 key dangers:

Threat No. 1: Enterprise disruption and alter administration danger

Every acquisition is a fireplace drill of paperwork—a few of that’s unavoidable. However, if producer licensing, appointment, and compliance features all stay on the native enterprise degree, your downstream producers get the sensation that “that is the brand new boss, identical because the previous boss.” The expertise can really feel pointless and trigger disruption to your promoting brokers with little payoff or acquire to them, and the danger that they’ll churn or that the knowledge switch will introduce new errors for you. This hazard of churn, or of slowing down your processes as you onboard your new producers additionally presents a really actual hazard to your backside line: Slowing right down to onboard producers dangers the revenue of the enterprise they may very well be writing within the meantime.

Threat No. 2: Regulatory danger

For those who don’t personal the compliance and producer administration features of what you are promoting, you tackle the dangers of every enterprise unit dealing with this in numerous, usually fractional methods, the place compliance and license validation is simply a portion of somebody’s accountability. This may result in gross sales beneath lapsed licenses, inappropriate and unlicensed commissions payouts, and wasted charges for late license renewals. Additional, if compliance is a distributed, fractional accountability, you possible face the danger that whoever manages this operate lacks the form of institutional data essential to defending the producers beneath their purview. Every of those situations carries its personal regulatory danger, and regulatory danger can simply spiral into reputational danger.

Threat No. 3: Little or no transparency

What number of brokers write enterprise in your insurance coverage provider or company? How a lot does every insurance coverage producer value you? What’s the true ROI on every producer and even every enterprise unit? When the prices of licensing or appointing are opaque, when you possibly can’t join prices with earnouts, or when you possibly can’t inform how a lot of a enterprise unit’s commissions are paid primarily based on a single particular person nationwide producer quantity, then you definately don’t have sufficient transparency to judge your prices, your dangers, or what you are promoting well being.

Threat No. 4: Decreased perceived worth for brand new acquisition

A part of the enterprise danger is the perceived worth you deliver to your acquired distributors and their particular person producers. Whenever you present centralized providers that take troublesome or boring duties off of your companions’ plates, you possibly can drive dwelling the worth that your relationship presents. That is one thing that should be performed properly, otherwise you danger the notion that you simply’re “too huge” in your new acquisition, and that you could’t truly present the providers you say you possibly can.

Threat No. 5: Restricted dimension of acquisition

For those who can’t deal with the change administration, centralize the core features of your acquisitions, and crank up your effectivity, then you definately’re going to lock your progress to solely having the ability to purchase companies or carriers of a sure dimension. In any other case, the sheer dimension of your acquisition’s producer drive would overwhelm your infrastructure. For companies that enable their companies to deal with producer administration and compliance duties as one-off, distributed providers, the producer-to-administrator ratio tends to be very excessive, that means extra of your headcount is devoted to those duties than you possible understand.

Why AgentSync is the associate of selection for high-acquisition insurance coverage companies and carriers

AgentSync is purpose-built for insurance coverage, main distinguished carriers and companies throughout the spectrum to make use of our contextualized knowledge and core software program as a part of their modernized infrastructure.

For insurance coverage carriers and companies which might be rising primarily by aggressive acquisition methods, AgentSync presents a selected worth, with clients leveraging the next options:

• Automated workflows: Automated workflows take tedious, predictable, and extremely handbook duties off your staff so your human staff can use their huge stunning brains for high-leverage work and extra white-glove providers.
• API-driven, vendor-agnostic integrations: By breaking down silos, our standardized knowledge makes it straightforward to combine knowledge up and down your tech stack so the individuals who must make data-based selections have the knowledge they want when and the place they want it. Combine with a background verify supplier and streamline onboarding. Combine with a commissions system and ensure each fee is paid out on time and in compliance. The probabilities are infinite.
• Hierarchy Administration: When your partnerships change, producers transfer, or management buildings break up, you possibly can replicate that change immediately throughout all of your techniques. Cease repetitive knowledge entry by making certain your knowledge is true the primary time and each time in your source-of-truth software program.
• Scorecard: Is your gross sales territory stacked with brokers who’re truly able to promote? Know at a look the place you’re prepared and the place it is best to focus your operational efforts.
• Reporting: It’s not nearly who’s licensed and the place. With essentially the most sturdy out-of-the-box reporting, you possibly can report on who’s appointed in what territories to see gaps and alternatives in your distribution technique.
• Bulk actions: Must develop into Montana? You would go agent-by-agent for appointments or license purposes. Or you may submit data in bulk. Montana, verify. Who’s subsequent?

For those who’re unsure a tech improve can rework your producer-to-admin ratio, maintain studying and allow us to persuade you. For those who’re able to see what, particularly, AgentSync can do for you, schedule a custom-made demo.

Matters
Mergers & Acquisitions