There is a plethora of opportunities for generating greater profitability for insurance organizations if only they happen to implement the best practices. In a recent survey , it was found that 25% of the insurance agencies generating a revenue of 5-10$million had already adopted and paved way for smart operation procedures and are 30-50% highly productive than the average insurance agencies. However, it should be noted that putting the best practices into practice might not be as easy as apprehended. At times agencies applying these procedures in an abrupt manner have led to high rate of failures in those agencies.
For applying, the best practices in the insurance agency and ensuring that it leads to smart working one need to adopt the three-pronged strategy of align, process and execute. This can be explained as:
- Aligning the operations to the main strategy- This comprises of the mission of the organization that is defining clearly what one wants to be best at and why the clients should choose your agency in particular. This would also comprise the critical success factors, qualities required to accomplish the mission such as potential markets, financial resources, core capabilities and culture, differentiation and finally having a vision where the agency positions itself in the years to come.
- Operations Process- Aligning the process to the strategy is essential to determine the optimum methods to achieve the organizational goals. This implies engaging those who do the work to monitor where the changes need to be administered and to implement standards that compliment the strategy.
- Process Execution- Making the strategy happen is the real deal. This implies understanding whether the employees have the right skills and are equipped to fulfill their job roles. In addition, it also determines the metrics for each employee to ensure they have a clear report of their contribution to the agency and towards their goals.
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