New report divides distribution and compensation management capabilities into stages of maturity, enabling insurers to identify their place on the DCM spectrum.
A growing number of insurers are examining how they engage with producers, viewing it as a strategic capability that enables competitive advantage rather than as a non-differentiating back-office activity and regulatory compliance. In reconsidering distribution and compensation management (DCM) capabilities as enablers to distribution-centric growth strategies, insurers are creating competitive differentiation in an environment that is heavily competitive for distribution system access.
In a new Impact Report, Distribution and Compensation Management Maturity Model, research and advisory firm Aite-Novarica Group introduces the Aite-Novarica Group DCM Maturity Model, which enables insurers to identify where they currently are on the DCM spectrum, their DCM destination, and the gaps in between.
“The Aite-Novarica Group DCM Maturity Model divides the stages of maturity into Traditional, Evolving, and Transforming,” said Nancy Casbarro, Senior Principal at Aite-Novarica Group. “Insurers should inform their journey from Traditional/Evolving to Evolving/Transforming to understand their competitors’ capabilities and their distribution’s priorities.”
“Enabling these capabilities will take time and investment,” adds Eric Weisburg, Senior Principal at Aite-Novarica Group and co-author of the new report. “Carriers should consider where they are today and where they want to be two to five years from now. As Wayne Gretzky famously said, ‘A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be.'”
About Aite-Novarica Group:
Aite-Novarica Group is an advisory firm providing mission-critical insights on technology, regulations, strategy, and operations to hundreds of banks, insurers, payments providers, and investment firms—as well as the technology and service providers that support them. Comprising former senior technology, strategy, and operations executives as well as experienced researchers and consultants, our experts provide actionable advice to our client base, leveraging deep insights developed via our extensive network of clients and other industry contacts. Visit us on the web and connect with us on Twitter and LinkedIn.