Strategic Issues in Insurance Distribution Management by Celent

In a recent survey of insurance executives, more than 80% of carriers reported that growth was driving IT investments
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Compensation manage carrier distributed manage report program
In a recent survey of insurance executives, more than 80% of carriers reported that growth was driving IT investments
About manojranaweera

Compensation manage carrier distributed manage report program
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STRATEGIC ISSUES IN 
INSURANCE DISTRIBUTION 
MANAGEMENT 
      
Karlyn Carnahan 
May 2015 
 
 
 
CONTENTS 
Executive Summary ............................................................................................................ 1 
Key Research Questions ................................................................................................. 1 
Key Findings .................................................................................................................... 1 
Introduction.......................................................................................................................... 3 
About this Survey ............................................................................................................ 3 
Key Research Questions ................................................................................................. 4 
Organizational and Strategic Issues ................................................................................... 5 
Responsibility for Distribution Management .................................................................... 5 
Importance of Issues in Distribution Management .......................................................... 6 
Agency Segmentation ..................................................................................................... 7 
Compensation ..................................................................................................................... 8 
Strategic View of Compensation ..................................................................................... 8 
Types of Compensation Utilized ...................................................................................... 9 
Effectiveness of Compensation Techniques ................................................................. 10 
Technologies and Challenges ........................................................................................... 11 
Licensing and Appointments ......................................................................................... 11 
Technologies Used ........................................................................................................ 12 
Challenges in Managing Compensation ........................................................................ 13 
Conclusion......................................................................................................................... 15 
Leveraging Celent’s Expertise .......................................................................................... 16 
Support for Financial Institutions ................................................................................... 16 
Support for Vendors ...................................................................................................... 16 
Related Celent Research .................................................................................................. 17 
 
 
 
 
 
 
EXECUTIVE SUMMARY 
In a recent survey of insurance executives, more than 80% of carriers reported that 
growth was driving IT investments (see the Celent report Property/Casualty Insurance 
CIO Pressures and Practices 2015: North American Edition, January 2015). However, in 
a competitive market, organic growth is difficult. Simply having terrific products is not 
enough to grow the book or keep customers. There is always a competitor around the 
corner with better products, better prices, or a better customer experience.  
Carriers use a variety of techniques for growing the book, and most consider distribution 
management a key component of their strategy. They are expanding channels, adding 
distributors, moving into new territories, and working to optimize their existing channel to 
improve customer acquisition and retention. Some carriers are investing in improving the 
servicing of distribution channels. Others are focused on managing the compliance 
aspects of distribution management — assuring the distributors have the right licenses, 
and that state appointments are made in a timely manner. Many carriers are 
concentrating on using compensation tools and techniques to more effectively stimulate 
production.  
To understand what top carriers are doing in this area, Celent conducted a survey around 
this topic. The goal was to understand how the carriers are organized to manage the 
distribution channel, what types of techniques they use, and what challenges they face.  
KEY RESEARCH QUESTIONS 
1 
Who is responsible 
for distribution 
management, and 
what kind of 
challenges do they 
face? 
2 
What types of 
compensation are 
used, and how 
effective are they?  
3 
What technologies 
are used to manage 
compensation, and 
what key 
challenges do 
carriers face?  
 
 
KEY FINDINGS 
 Primary responsibility for distribution management tends to be concentrated in a 
single department. In most organizations, a formal distribution management 
organization has primary responsibility for channel management. However, there are 
significant differences between life carriers and property & casualty carriers in who 
owns distribution management. Property & casualty carriers have primary 
responsibility split between distribution management and field underwriting. Life 
carriers generally split responsibility between distribution management and 
marketing.  
 
Issues in distribution management fall into four buckets.  
– Managing the day-to-day relationships with agents is seen as the most important 
issue, followed by compliance-related issues.  
– Managing compensation is also seen as extremely important by a majority of 
carriers — although carriers report that it is more important to calculate 
compensation accurately than to assure it is effective at driving desired business. 
Compensation is often seen as a basic requirement, and many carriers see little 
ability to differentiate themselves.  
 
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– Expanding the channel and adding agents is also seen as important, although 
9% of carriers state that expanding channels is unimportant.  
 A wide variety of compensation techniques are used by carriers, and most say they 
get value from those programs. Commission is universal. Other techniques such as 
incentive comp and contests may only be available to top tier or qualifying agents, 
but receive mixed reviews on their effectiveness. Only 25% of those offering incentive 
compensation programs see them as effective. “Having an incentive compensation 
program isn’t highly effective, but not having one would be even worse.”  
 
Technology enables compliance, a critical process for carriers. However, automating 
the licensing and appointment process is not ubiquitous. Fewer than half of carriers 
have automated any of the major processes (validating licenses, processing an 
appointment, or providing self-service to distributors). Those that have automated the 
processes generally report them as delivering value. 
 
The ability to administer a compensation program efficiently is highly dependent on 
the technologies utilized. A wide variety of technologies are utilized, ranging from 
core systems such as policy admin or billing solutions; solutions that were built or 
purchased specifically to handle a particular compensation program, or manual tools 
such as Excel. Forty percent have at least one homegrown application that is used to 
process commissions, and 37.5% use a vended package. Surprisingly, more than 
33% of carriers use Excel or other manual tools as part of their commission 
management architecture. This use of manual systems may be part of the reason 
that so many carriers report accurate calculations as a significant challenge. Manual 
processes are always prone to error. 
 
For many, the ability to administer a compensation program easily is the key driver as 
to whether the program will be offered. While they may wish to utilize a particular 
technique, their technologies create barriers. The biggest challenges of managing 
compensation are the basic ability to deploy the programs on a day-to-day basis: 
efficiently calculating the compensation owed, and distributing payment. Carriers 
facing these basic challenges often do not have the basic tools necessary for 
handling common programs and so shy away from offering more targeted 
compensation options. Compensation management is also an issue as carriers report 
difficulty in forecasting compensation and assuring they are in compliance. When it 
comes to specific types of programs, non-monetary compensation is seen as the 
most difficult to manage.  
 Sixty-seven percent of carriers using a purchased distribution management system 
report no significant challenges with any aspect of compensation management. While 
33% of carriers that have a purchased distribution management system report 
significant challenges with fragmented data, forecasting, and modeling plans, they do 
not report significant problems with any other aspects of compensation management. 
The use of vended products seems to be correlated with fewer problems in managing 
compensation.  
 
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INTRODUCTION 
In a recent survey of insurance executives, more than 80% of carriers reported that 
growth was driving IT investments. (See the Celent report Property/Casualty Insurance 
CIO Pressures and Practices 2015: North American Edition, January 2015.) However, in 
a competitive market organic growth is difficult. Simply having terrific products is not 
enough to grow the book or keep customers. There is always a competitor around the 
corner with better products, better prices, or a better customer experience.  
Carriers use a variety of techniques for growing the book, and most consider distribution 
management a key component of their strategy. Carriers are expanding channels, adding 
distributors, moving into new territories, and working to optimize their existing channel to 
improve customer acquisition and retention. Some carriers focus their investments on 
servicing distribution channels and improving service to distributors, increasingly using 
producer service excellence as a way to retain and grow business. Others are focused on 
managing the compliance aspects of distribution management — assuring the 
distributors have the right licenses, and that state appointments are made in a timely 
manner. Many carriers are concentrating on using compensation tools and techniques to 
more effectively stimulate production.  
Regardless of what techniques are being used, designing, developing, maintaining, and 
managing productive channel relationships can create a sustainable competitive 
advantage.  
ABOUT THIS SURVEY 
To understand what top carriers are doing in this area, Celent conducted a survey of 11 
carriers. All respondents are members of the Celent Research Panel, a group of senior 
insurance IT executives. Members, each representing a different insurer, participated in 
an online survey in April 2015.  
Table 1: Participants  
 
UNDER $1 BILLION 
OVER $1 BILLION 
TOTAL 
Property and Casualty 
40% 
60% 
55% 
Life and Annuities 
20% 
80% 
45% 
Total 
30% 
70% 
100% 
Source: Celent Strategic Issues in Distribution Management Survey April 2015 
The goal of the survey was to understand how the carriers are organized to manage the 
distribution channel, what types of techniques they use, and what challenges they face.  
 
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KEY RESEARCH QUESTIONS 
1 
Who is responsible 
for distribution 
management, and 
what kind of 
challenges do they 
face? 
2 
What types of 
compensation are 
used, and how 
effective are they?  
3 
What technologies 
are used to manage 
compensation, and 
what key 
challenges do 
carriers face?  
 
 
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ORGANIZATIONAL AND STRATEGIC ISSUES 
RESPONSIBILITY FOR DISTRIBUTION MANAGEMENT 
Primary responsibility for distribution management tends to be concentrated in a single 
department. Life and property/casualty carriers have significant differences in who owns 
distribution management. In life carriers, distribution management is either owned by 
marketing or by a centralized department whose primary responsibility is distribution 
management. Property/casualty carriers have responsibility split between distribution 
management and field underwriting.  
 
Figure 1: Organizational Responsibilities 
 
Source: Celent 
 
 Sixty-six percent of carriers have a corporate distribution management organization 
that is primarily responsibility for managing the distribution channel; 22% of carriers 
do not have this type of organization.  
 
Life carriers place responsibility for field execution with the IT department, while PC 
carriers place responsibility with underwriters in the field.  
 
Life carriers state that marketing and IT have shared responsibility for distribution 
management. PC carriers say responsibility is shared between distribution 
management, marketing, and corporate underwriting.  
 PC carriers show finance and IT as support functions. Life carriers also place 
marketing, field underwriting, and corporate underwriting as supporting the process of 
distribution management.  
 
 
 
 
0%
20%
40%
60%
80%
100%
PC Support
Life Support
PC Field Execution
Life Field Execution
PC Shared
Life Shared
PC Primary
Life Primary
Responsibility for Distribution Management 
Distribution Mgmt Marketing Field UW Finance
IT Corp UW
 
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IMPORTANCE OF ISSUES IN DISTRIBUTION MANAGEMENT 
Issues in distribution management fall into four buckets. Those related to managing the 
day-to-day relationships with agents are seen as the most important, followed by 
compliance. Agency segmentation is not seen as particularly important by over one-third 
of carriers, although this is an area that a number of carriers are investing in. Managing 
compensation is also seen as extremely important by a majority of carriers — although 
carriers report that it is more important to calculate compensation accurately than to 
assure it is effective at driving desired business. Compensation is often seen as a basic 
requirement, and many carriers see little ability to differentiate themselves. Expanding the 
channel and adding agents is also seen as important, although 9% of carriers state that 
expanding channels is unimportant.  
Figure 2: Issues in Distribution Management 
 
Source: Celent Strategic Issues in Distribution Management Survey April 2015 
 
 Ninety-one percent of carriers said relationship management is extremely 
important, although 36% do not see segmentation as particularly important. 
 Compliance issues (validating licenses and assuring all documentation is filed 
appropriately with the DOI) is seen as extremely important by 72.7% of all 
carriers.  
 Carriers see accurate compensation as more important than effective 
compensation; 36% of carriers said effective compensation was neither important 
nor unimportant.  
 Although more than 80% of carriers see adding agents and channels as 
important, 9% are not focused on adding new distribution channels.  
 
 
 
 
 
0%
20%
40%
60%
80%
100%
Expanding  channels
Adding agents
Effective compensation
Accurate compensation
Multiple contracts
Verifying licenses
Compliance
Agency Segmentation
Managing efficiently
Managing relationships
Importance of Issues in Distribution Management 
5 - Extremely important
4
3 - Neither important nor unimportant
2
1 - Unimportant
 
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AGENCY SEGMENTATION 
Agent segmentation is key to identifying the needs of agents and supporting the 
development of their activities. Carriers are shifting from broad-based segmentation tiers 
based on size and profitability to more complex tiers. Many segmentation dimensions are 
being considered, from business performance to size, business mix, and location. The 
segmentation leads to tailored support structures and service offerings.  
Figure 3: Segmentation Strategies 
 
Source: Celent 
 
 
 
 
 
 
 
 
 
 
Hunters 
Old Boys 
Futures 
Beginners
Losers
Champions 
• Secure success
E.g. Support from sales specialist, administration 
relief 
• Exploit potential in the stock 
E.g. Assistance in evaluation of social networks, 
website of the agencies, etc.
• Skills development, e.g. customer acquisition, 
scheduling, technically qualification, product 
knowledge 
Promote / support sales activities, e.g. digital 
support in the sales process, ensure standard 
procedures deployed
Example
Specific challenges of the individual segments
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In-force business
Ø
Ø
below Ø
above Ø
b
e
lo
w
Ø
a
b
o
v
e
Ø
Champions 
(5%)
Hunters 
(15%)
Old Boys 
(20%)
Futures 
(22%)
Losers
(22%)
Beginners
(16%)
Individual agent profiles clustering
• Central control
• Minimum support
• Separation
• Central management, support (only) on request, 
where possible, reduce stocks
Key 
Research 
Question 
1 
 
Who is responsible for distribution management, and what 
kind of challenges do they face? 
In most organizations, a formal distribution 
management organization has primary responsibility 
for channel management. Managing relationships 
and compliance are seen as the biggest issues they 
face.  
 
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COMPENSATION 
STRATEGIC VIEW OF COMPENSATION 
Compensation is a critical component of agency management. The compatibility and 
alignment of the compensation program with the company’s strategic goals are central to 
assuring the effectiveness of the compensation program. Carriers that translate their 
strategic goals into tangible requirements as well as remuneration are more successful at 
driving behavior. Different compensation programs may be used if the carrier is focused 
more on growth than on profitability or on cross-selling more than customer acquisition.  
Figure 4: Strategic Compensation Strategies 
 
Source: Celent 
 
 
Target goal hierarchy of compensation
Compensation intentions – examples 
Transformation in holistic technical system
Strategic company
goals
Compensation system 
(components, mechanics)
Distribution goals
Requirements at distribution
Incentives / Compensation intention
Cross-
Selling
Customer 
Value 
Growth
Profitability
Volume 
New customer
acquisition
 
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TYPES OF COMPENSATION UTILIZED 
Carriers use a variety of compensation tools when creating compensation programs. 
Commission is ubiquitous. However, wide varieties of other techniques are available — 
although not for every agent. Some carriers offer additional types of compensation only to 
top tier agents or to those that qualify in other areas.  
Figure 5: Compensation Mechanisms Utilized 
 
Source: Celent Strategic Issues in Distribution Management Survey April 2015 
 
Forty percent of carriers require that agents meet a minimum qualifying level of 
production before they are eligible for incentive compensation, and 9% of carriers 
restrict incentive comp to their top tier agents; 36% do not offer incentive comp and 
have no plans to do so.  
 
Thirty percent offer contests to all agents, while 40% only offer contests to those who 
qualify; 30% have no plans to offer contests. In some cases, this is due to the 
difficulty of managing the contest across multiple products, regions, and agency 
types. Carriers that primarily utilize their core system to manage compensation have 
a harder time with non-monetary compensation programs. Those that have stand-
alone systems are more likely to offer contests.  
 Production overrides are used by 70% of carriers, but 40% require that agents meet 
a minimum level of qualification before they are eligible for overrides.  
 Special programs such as funding marketing campaigns, providing leads, or 
providing other support are generally only available to top tier agents or those who 
meet other minimum qualifications. Forty percent of carriers do not have any special 
programs available for their agents.  
 
 
 
0%
20%
40%
60%
80%
100%
Commission
Contests
Production Overrides
Incentive Comp
Special Programs
Other
Types of Compensation Utilized 
Yes. All Agents
Yes. Qualifying Agents
Yes. Top Tier Agents
Planning to Use
No and No Plans
 
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EFFECTIVENESS OF COMPENSATION TECHNIQUES  
Regardless of the types of compensation offered, the bigger question is how effective 
they are at driving behavior. Carriers look to compensation mechanisms as the incentive 
for submitting, writing, and keeping good business with a carrier. Different techniques 
have different purposes. Carriers looking to drive solid returns from these programs focus 
on aligning the programs with their strategic goals, and automating them to provide 
efficient and accurate implementation.  
Figure 6: Effectiveness of Compensation Techniques 
 
Source: Celent Strategic Issues in Distribution Management Survey April 2015 
 Carriers report mixed success when it comes to the effectiveness of the 
compensation techniques.  
 Commission overrides are seen as the most effective. More than half of those who 
offer this type of program say that they are very effective, although more than 25% 
rate them only average on their effectiveness.  
 Straight commission is also seen as highly effective by most, although 10% of those 
offering commission see it as only slightly effective in driving their goals.  
 Only 25% of those offering incentive compensation programs see them as effective. 
“Having an incentive compensation program isn’t highly effective, but not having one 
would be even worse.”  
 Contests and special programs are most likely to be seen as only slightly effective. 
 
  
 
 
 
 
 
 
 
 
0%
20%
40%
60%
80%
100%
Contests
Special Programs
Other
Incentive Comp
Commission
Overrides
Effectiveness of Compensation Techniques 
5 - Very effective
4
3
2
1 - Ineffective
Key 
Research 
Question 
2 
What types of compensation are used, and how effective are 
they?  
A wide variety of techniques are used by carriers, 
and most say they get value from those programs. 
Some techniques such as incentive comp and 
contests may only be available to top tier or 
qualifying agents, but receive mixed reviews on 
their effectiveness.  
 
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TECHNOLOGIES AND CHALLENGES 
LICENSING AND APPOINTMENTS 
Technology enables compliance, a critical process for carriers. Automating the licensing 
and appointment process is certainly not ubiquitous. Fewer than half of carriers have 
automated any of the major processes (validating licenses, processing an appointment, 
or providing self-service to distributors). Those that have automated the processes 
generally report them as delivering value.  
Figure 7: Automation Capabilities 
 
Source: Celent Strategic Issues in Distribution Management Survey April 2015 
 
Twenty-five percent of carriers offer just in time appointment processing with the DOI. 
Almost 70% of those say they are getting significant value. The remaining 30% say it 
is too early to tell. Almost 30% of carriers are thinking about enabling this feature.  
 
Fewer than 20% of carriers have automated electronic funds transfer with the DOI; 
50% say they are getting significant value, and the other 50% say they are getting 
some value.  
 More than 40% offer automated appointments with the DOI; 40% say they are getting 
significant value, 20% say some value, and 40% say it is too early to tell.  
 
Fewer than 10% of respondents offer self-service capabilities to the agents. All say 
that it is too early to tell if this is generating value. More than 70% of carries are 
thinking about offering this capability.  
 
 
0%
20%
40%
60%
80%
100%
Self Service
Real-time  FINRA
Real-time DTCC
EFT With  DOI
Real-time NIPR (PDB)
Just In Time Appt With DOI
Automated appts with DOI
Managing Licenses and Appointments 
Significant Value
Some Value
Not sure
Too early to tell
Definite plans
Thinking About it
No and No plans
 
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TECHNOLOGIES USED 
The ability to administer a compensation program efficiently is highly aligned with the 
technologies available. A wide variety of technologies are available ranging from core 
systems such as policy admin or billing solutions; solutions that were built or purchased 
specifically to handle a particular program, or manual tools such as Excel.  
Figure 8: Compensation Technologies 
 
Source: Celent Strategic Issues in Distribution Management Survey April 2015 
 
 Ninety percent of carriers say that the policy admin system is part of their commission 
management architecture. More than 40% utilize their billing system to manage 
transactional commissions; 40% have at least one homegrown application that is 
used to process commissions, and 37.5% use a vended package. Surprisingly, more 
than 33% of carriers use Excel or other manual tools as part of their commission 
management architecture. This use of manual systems may be part of the reason 
that so many carriers report accurate calculations as a significant challenge. Manual 
processes are always prone to error. 
 
The most common tool used to manage incentive compensation is a homegrown 
solution, followed by a vended solution and augmented with Excel or other manual 
processes.  
 Contests are most often handled in Excel, but a small number of carriers are using a 
gamification platform to manage these contests.  
 
 
 
0.0%
20.0%
40.0%
60.0%
80.0% 100.0%
Special Programs
Production Overrides
Contests
Incentive Comp
Commission
Technologies Used to Manage Compensation 
PAS
Billing
HomeGrown
Purchased system
Excel/Manual
Gamification
 
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CHALLENGES IN MANAGING COMPENSATION 
For many, the ability to administer a compensation program easily is the principal driver 
as to whether the program will be offered. While they may wish to utilize a particular 
technique, their technologies create barriers. The biggest challenges of managing 
compensation are the basic ability to deploy the programs on a day-to-day basis — 
efficiently calculating the compensation owed, and distributing payment. Carriers facing 
these challenges often do not have the basic tools necessary for handling common 
programs and so shy away from offering more targeted compensation options. 
Compensation management is also an issue with carriers reporting difficulty in 
forecasting compensation and assuring they are in compliance. When it comes to specific 
types of programs, non-monetary compensation is seen as the most difficult to manage.  
Figure 9: Compensation Challenges 
 
Source: Celent Strategic Issues in Distribution Management Survey April 2015 
 
Fifty percent of carriers find efficient calculation and distribution of commission 
extremely or fairly challenging. Given that this is a basic requirement of a 
compensation program, many carriers are focusing their technology investments 
here. Another 33% do not have any difficulty with this. Those who describe this as 
difficult are more likely to have a homegrown system or rely on Excel.  
 
Fragmented data is also seen as challenging by more than 40% of the reporting 
carriers. This may well be a root cause for difficulties in forecasting, modeling, and 
creating accurate calculations.  
 Most carriers do not see the internal tasks of managing the cost of compensation as 
a challenge; 73% say forecasting and modeling are not particularly challenging. 
Staying in compliance is seen as slightly more difficult, with 45% reporting 
compliance as a challenge.  
 Although most carriers see flexible bonuses and flexible commissions as not 
particularly challenging, aligning compensation to the strategic goals is seen as more 
difficult. Non-monetary compensation is also seen as challenging by more than half 
the carriers.  
 While 33% of carriers that have a purchased distribution management system report 
significant challenges with fragmented data, forecasting, and modeling plans, they do 
not report significant problems with any other aspects of compensation management. 
The remaining 67% report no significant challenges with any aspect of compensation 
0%
20%
40%
60%
80%
100%
Flexible bonuses
Aligning compensation
Flexible commissions
Non Monetary
What if modeling
Compliance
Forecasting
Accurate calculations
Automate Bonuses
Fragmented data
Efficient calculation…
Biggest Challenges in Managing Compensation 
5 - Extremely challenging
4 3 2 1 - Not challenging at all
NA
 
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management. The use of vended products seems to be correlated with fewer 
problems in managing compensation.  
 
 
 
 
Key 
Research 
Question 
3 
What technologies are used to manage compensation, and 
what key challenges do carriers face?  
Most carriers rely on a variety of systems to 
manage compensation (including Excel) and find 
efficient calculation and distribution of compensation 
to be quite challenging. Compliance is another 
challenging area, with many carriers in the early 
phase of considering additional automation.  
 
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CONCLUSION 
Managing the distribution channel requires discipline in a number of areas from 
managing the day-to-day relationship, assuring the distributor is in compliance with the 
licenses and appointments, and strategically managing compensation. Many carriers are 
investing heavily in processes to hone these capabilities in order to differentiate 
themselves in the agents’ eyes beyond the product and price offered. However, carriers 
face significant challenges in performing these tasks efficiently. Fragmented data and old 
technologies cause inefficiencies  
Carriers looking to improve distribution effectiveness use technology as a strategic 
differentiator. Consistency in assuring licensing and appointment compliance can help 
avoid market conduct fines. Simple, accurate 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. Moreover, providing access to these tools via self-
service capabilities meets a growing request by agency principals. Without easy access 
to clean data, it is hard to manage agents strategically instead of transaction by 
transaction.  
Managing agents well requires a focus on both the use of clean data and consistent 
delivery of processes. Carriers looking to improve their capabilities in these areas should 
focus on five major initiatives:  
 Utilize data to more effectively segment agents and create specific programs for 
them. These programs may include unique compensation programs or specialized 
processes designed to build a stronger relationship.  
 Automate the processes of compliance. Those who do automate compliance report 
value from doing so. Look to automating the appointment process with the DOIs and 
investigate just in time appointments.  
 Align compensation programs with strategic goals. Move beyond a traditional 
transactional commission and an incentive plan based on volume and profit. Create 
targeted programs that focus on specific growth initiatives. 
 
Invest in tools to administer compensation programs seamlessly. Those who do so 
report few issues with effectively administering compensation programs accurately 
and are able to utilize more compensation techniques. Spreadsheets add sources of 
error and delay calculations.  
 Use automated workflow tools to more consistently deliver the processes associated 
with agency relationships. 
 
 
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upcoming research topics to info@celent.com. 
 
 
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LEVERAGING CELENT’S EXPERTISE 
If you found this report valuable, you might consider engaging with Celent for custom 
analysis and research. Our collective experience and the knowledge we gained while 
working on this report can help you streamline the creation, refinement, or execution of 
your strategies. 
SUPPORT FOR FINANCIAL INSTITUTIONS 
Typical projects we support related to distribution management include: 
Vendor short listing and selection. We perform discovery specific to you and your 
business to better understand your unique needs. We then create and administer a 
custom RFI to selected vendors to assist you in making rapid and accurate vendor 
choices. 
Business practice evaluations. We spend time evaluating your business processes. 
Based on our knowledge of the market, we identify potential process or technology 
constraints and provide clear insights that will help you implement industry best practices. 
IT and business strategy creation. We collect perspectives from your executive team, 
your front line business and IT staff, and your customers. We then analyze your current 
position, institutional capabilities, and technology against your goals. If necessary, we 
help you reformulate your technology and business plans to address short-term and long-
term needs. 
SUPPORT FOR VENDORS 
We provide services that help you refine your product and service offerings. 
Examples include: 
Product and service strategy evaluation. We help you assess your market position in 
terms of functionality, technology, and services. Our strategy workshops will help you 
target the right customers and map your offerings to their needs. 
Market messaging and collateral review. Based on our extensive experience with your 
potential clients, we assess your marketing and sales materials—including your website 
and any collateral. 
 
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RELATED CELENT RESEARCH 
Distribution Management System Vendors: North American Insurance 2015 
January 2015  
Property/Casualty Insurance CIO Pressures and Practices 2015: North American Edition  
January 2015 
Game Revolution: Gamification in the Insurance Industry 
May 2014  
 
 
 
 
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18 
 
 
 
 
 
 
 
 
Copyright Notice 
Prepared by 
Celent, a division of Oliver Wyman, Inc. 
Copyright © 2015 Celent, a division of Oliver Wyman, Inc. All rights reserved. This report 
may not be reproduced, copied or redistributed, in whole or in part, in any form or by any 
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For more information please contact info@celent.com or: 
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EUROPE 
ASIA 
USA 
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France 
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Paris Cedex 16 
75783 
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Japan 
The Imperial Hotel Tower, 13th Floor 
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Singapore 
8 Marina View #09-07 
Asia Square Tower 1 
Singapore 018960 
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Fax: +65.6327.5406 
South Korea 
Youngpoong Building, 22nd Floor 
33 Seorin-dong, Jongno-gu 
Seoul 110-752 
 
Tel.: +82.10.3019.1417 
Fax: +82.2.399.5534 
 
 
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