Agency Modeling: 6-wk Implementation.

Wavicle Data Solutions

Agency Modeling solution allows insurers to improve quality of their distribution by predicting propensity of captive agents and independent agencies to become top producers and optimize on-boarding.

As the volume of business surges, so too, are the challenges associated with appointing the right distributors. Quality of distribution has the highest impact on insurer’s profitability, and independent agencies continue to be one of the most important distribution channels in the insurance industry.

According to A.M Best, 46.8% of individual and 67.2% of commercial P&C net premiums are written by agencies. For Life Insurance, 50% of new business is brought by independent agencies, and another 40% – by captive agents. Most of the insurers' agency selection process is expensive, cumbersome, and doesn’t scale for the growth the CEO demanded: internal agency management resources are spread thin across a huge candidate pool, at times “over-assessing” distributors regardless of their true potential. Yet, costly “mis-appointments”, where candidate agencies with a low propensity to succeed as a “top distributor” were often selected - are common.

This is where Wavicle Agency Modeling solution comes in. It helps you quickly…

  1. Define “successful distributers” as a function of weighted ratio of profitability growth, loss ratio, and compliance; identify top performers;
  2. Segment best candidates based on competencies;
  3. Quantify effect of top agency performance predictors and improve quality of candidates through behavioral modeling, and,
  4. Quantify the uplift from implementing new and improved agency onboarding process.

How quickly? The solution we deliver on Microsoft Azure allows you to get a complete setup ready in six (6) weeks. For example, Azure Data Lake enables us to capture data of any size and type in one place to enable building a producer propensity solution. With Azure Data Factory (ADF) we significantly cut down on creating data-driven workflows for orchestrating and automating data movement and data transformation for the producer model. Azure SQL DB - relational database managed service – helps us create a highly-available and high-performance data storage layer for the applications and solutions in Microsoft Azure cloud. Finally, a lot of time savings come from Azure ML Services that streamlines the building, training, and deployment of ML models that comprise the solution, and from an amazing PowerBI that supports a pre-built dashboard with rich visualization.

And even that is not it!!! In addition to a fully functioning solution, you will receive recommendations related to improving and streamlining the appointment process by targeting attribute questions essential to agent/agency performance.

Typical results: 6 weeks from whiteboard to a fully operational solution, improved model precision and accuracy to 80-90%, reduced agency appointment cycle from 4 months to 6 weeks, removed nearly $20m in profit leakage due to mis-appointments.