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An Insurance Industry Case Study - Compass for Agent Management Personnel

An interesting case study on a Compass implementation and result metrics for one of the top Insurance providers in India.

Insurance Industry
 — 
10 Min read
 — 
Last Updated on
July 26, 2021

About the Company

Our client is one of the Best General Insurance Companies in Asia and they received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration in 2001. They are renowned for their outstanding customer service levels and innovations in the field of insurance. They have been generating continuous profitability over the years.  Today the company has a country-wide network in over 200 towns spread from Surat to Siliguri and Jammu to Thiruvananthapuram. Their Head Office is located in Pune.

Problem Statement

Workforce size: 800

Levels: Team Leaders (Level 1) and FOS (Level 2)

The company’s full-time insurance sales people (called the FOS - Feet On Street) have the following activities as their deliverables: Sale of Motor Insurance, Renewals and Premium collection. The FOS team approaches prospective insurance purchasers in their territory to offer them motor insurance. When the buyer purchases motor insurance, it is called an ‘Policy sale’ (expressed as a Policy Sold Count). When a buyer renews their insurance policy, it is called a ‘renewal’ (this is expressed as ‘Yes’ or ‘No’ entry). The total premium collected by the FOS is expressed as ‘Net Premium Collected’.

While there are monthly reports of Policy Sold, Renewals, and Net Premium collected sent out to the FOS team and their Team Leaders, they need to raise a request to get an update on these numbers, and resultantly the incentive they are eligible for. It takes an average of a day for this report to reach them or their manager.

The company wanted this performance data to be more transparent and readily available for their FOS team. They also wanted to use this data to nudge the team to perform better and recognize the high achievers.

Solution

Incentive Design

Compass Program design, User Management, and Data Sources & Variables features were used to construct the below-given incentive logic.

Pre-Conditions:

The FOS are eligible for the incentive if only the following conditions are met:

  1. At least 40% of their monthly net premium quota is collected. 
  2. New policies sold should be 50% of the target.
  3. Renewal target achievement should be at least 50%.

Conditional Incentive Slabs

1. Achievement Conditions:

At 6 - 9 Private Car Policies: Incentive is calculated as Rs. 250 * No. of policies sold

At 10 -12 Private Car Policies: Incentive is calculated as Rs. 300 * No. of policies sold

At 13 - 19 Private Car Policies: Incentive is calculated as Rs. 400 * No. of policies sold

At >19 Private Car Policies: Incentive is calculated as Rs. 500 * No. of policies sold

2. Nudge Conditions:

Target milestone wise nudges for:

Cumulative Policy Sale Milestones: 6, 10, 13, 19

Frequency: Weekly

Medium: email, SMS and push notifications on Compass app

Performance warning nudge

The FOS who have not achieved a minimum 75% of their milestone target and 25% net premium targets over a period of 2 months, are notified with a performance warning nudge to improve their performance - this way they can work on improving their performance proactively. (They tend to face separation with continued performance issues.)

App Setup

  • Brand customization of the end user app
  • Configured the following incentive calculations for the FOS incentive programs
  • Admin user training for Client POCs

Communication

Compass Groups feature was used to send out team messages that offered the below:

  • Performance hacks
  • Achiever announcements
  • Performer tips and testimonials
  • Compass feature awareness
  • Compass Wallet awareness
  • Compass Rewards and Benefits awareness
  • Compass groups awareness
  • Compass redemption awareness
  • Scoring more incentives on Compass - hacks
  • 'What's in it for me' awareness
  • Community building activities with user-generated content

Dashboard

The Compass dashboard feature offered branch and regional managers to view the below:

  • Region-wise Leaderboards
  • Efficacy of the incentive programs in terms of the numbers of qualifiers for each program
  • Incentive program-wise leaderboards

Impact

Impact evaluation methodology

The impact of the above Compass implementation was evaluated using:

  1. User interviews of 200 end-users
  2. User Survey form for 500 end-users
  3. Feature Quiz for 700 end-users
  4. Comparison of adoption of Performers V Non-Performers
  5. Comparison of business data of the previous with the implemented period
  6. Manager Survey

User Interview Results

Datapoint 1: Awareness of Compass

Heavy top-down drive, TTT (train the trainer) programs, and training webinars helped drive awareness.



Datapoint 2: Source of Awareness

The Team Leaders and webinar (indicating top-down messaging) contribute to 85.7% of the download compared to Whatsapp (Grassroot messaging).



Datapoint 3: Compass Installation Status

The successful awareness initiative leads to a successful number of downloads (92.9%).

User Interview + Survey Results

Overall app ratings on various perceived benefits.

The users were asked to review the app based on their perception of the below benefits on the rating scale: 1 - Highly Dissatisfied, 2 - Moderately Dissatisfied, 3 - Neutral, 4 - Moderately Satisfied 5 - Highly Satisfied.



App Adoption Findings

The maximum adoption rate was achieved within the first 15 days of implementation.

This is a function of the top-of-the-mind recall, curiosity and high frequency of touchpoints (via Webinar, TTTs and Launch mailers) with the end users.

Average logins per week stabilised at 2.2 at the end of 45 days 

This indicates that beyond the first 2 weeks, the users tend to access the Compass app 2 to 3 times a week. 

Average time spent on Programs Section was 3.17 minutes per user

The primary purpose of Compass implementation was to create Program Awareness and access to the Performance Progress of FOS. A higher time spent on the Programs section (3.17 mins), proves that the application served this purpose.

Performers Vs Non-Performer Analysis

To understand how the app impacted performers and improved performance, performer and non-performer cohorts were studied. 

Performer cohorts were found to have logged in more (254 logged in out of 274); rated the Compass app better (4.8 rating); and understood and engaged with the app more (average quiz score was 29.7 out of 40). The total number of performers increased over the period (from 259 to 379) and even their average performances increased (from 206K to 255K average net premium per FOS).




Comparison of business data (from previous period to current) between Compass implemented cohort vs not-implemented cohort

While Compass-implemented as well as the not-implemented cohorts of the team grew in performance (Compass from 95K to 129 avg. net premium per FOS; others from 69K to 96K avg. net premium per FOS), the Compass cohort saw a sustained growth through June (Compass cohort growth improved from 22% during May to 27% during June, other cohort growth decreased from 36% during May to 14% during June).

Manager Survey Responses

To understand perspectives of Team Managers a survey was conducted with close to 50 managers. Here is the snapshot of the survey results. 

To summarize, managers consider Compass an essential tool to improve performance. They rated Compass high on parameters* such as - Viewing Earning Potential (4.3/5); Live Incentive Tracking (4.48/5); Viewing Product-Wise and Segment-Wise Incentive Details (4.39/5); Live Performance Reports (4.48/5); and Overall FOS performance (4.48/5).

*These parameters were identified only after detailed conversations with the Managers. 





Conclusion

The following is a snapshot of how the FOS Compass implementation fares against the Compass industry benchmark:

* The logins/users/week and Performance Contribution are lower than our benchmark because this client has only signed up for our incentive calculation and display solution instead of our standard end-to-end incentive calculation + redemption solution.

To conclude our findings from the the FOS case study: 

  • Compass-implemented cohort has shown significant performance improvement.
  • Performer Cohorts have logged in more, rated Compass better and Understood and engaged with the app more.
  • Managers consider Compass an essential tool to improve performance.



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