Insurance companies are increasingly investing in improving their systems to ensure brokers are paid commissions in a timely manner.
This is according to insurance technology company Sungard, which states there is growing demand from insurers for risk solutions that ensure they can keep brokers on side.
“There is definitely a trend towards this. Distribution channels are only satisfied if commission payments are made in a timely manner. Insurers are investing in channel management solutions for sales and compensation of commissions to distribution channels,” said Peter Haslebacher, chief operating officer for Sungard’s Asia Pacific insurance solutions.
“This applies to the incentives insurers give to distribution channels,” he said. “Brokers want feedback on results and commissions immediately to compensate that they achieve. If that commission or incentive is delivered too late, the impact can be quite bad.”
Haslebacher said the trend reflected insurance companies’ need to grow.
“There are a lot of growth markets in Asia-Pacific which insurance companies need to tap into but they also need to grow in a manageable way to do that.”