Any company that relies on agents or brokers to bring in business knows how important it is to keep them happy. This goal is critical in the insurance industry, where carriers depend on networks of agents to sell policies and deliver customers. The $600 billion North American property and casualty market is mature, fiercely competitive, and highly fragmented. Given that policies, pricing, and agent compensation within the industry are fairly standardized, why would an agent choose one carrier over another? According to recent McKinsey research, agents value two things above all: ease of doing business and personalized service. The challenge for insurers is to offer both while increasing the efficiency and cost effectiveness of their operations.

To achieve this level of excellence, carriers must create a new operating model that uses technology to streamline processes and speed up decision making, rethinks the front- and back-office functions to minimize costs, and directs resources to areas where they can have the biggest impact. Although no carrier has fully implemented this new model yet, some are setting themselves apart from the competition with the quality of their operations and technology—either by being very easy to work with or by providing exceptional service.

Consider...