How Insurance Agencies Can Earn More Though Gamification
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How Insurance Agencies Can Earn More Though Gamification

Finance is the locomotive sector in developing countries as well as developed ones. The sector is divided into two branches, namely banking and insurance. For some reason, the insurance branch in Turkey has always been left well behind of banking branch but the issue is to be addressed in another article. The key point of this article is the main intermediary of the insurance business; agencies.


When we think of the term insurance agent, the stereotype is a guy walking around with a briefcase full of papers that have a font size that human eye cannot read and also talking non-stop until annoying the customer. Luckily the situation has changed with the regulations in the last decade and the stereotype has disappeared but it is not easy to change the minds of the customers. Insurance agencies are still the key intermediaries of the insurance business in Turkey. 7 of 10 policies in non-life branches are issued by them. Since this has been the case for a long time, insurance business has been left far behind in e-commerce due to insurance companies unwilling to break the relations with their agencies (or lose market share).


When we take a look at the agendas of insurance company CEOs, it is likely that one of the main 5 topics will be CRM related. With the developments in technology and the need to feel special of customers has led the companies to invest in this area. The importance of the customer is realized, how about the intermediaries that generate 70% of all sales? Every insurance company has formed some kind of “elite” agency group. Agencies with over a certain premium level are invited to private meetings or tours abroad, some companies even offer special online / in-class insurance trainings for them. Everything looks smooth at this point but for those who want to differentiate from others, there is a magic word : gamification!


Social media has powered up gamification


Gamification is a fairly new marketing element that has come into our lives whether directly or indirectly through social media. In a brief description, gamification is the application of game elements into non-game contexts, in this case the work environment. There are many successful gamification examples in a variety of sectors. When we think of how it would be possible in insurance sector, the main target is insurance agencies and their employees.


According to the numbers of Insurance Association of Turkey, there are 15.493 agencies and 110 brokerage houses active in Turkey. Assuming that each agency employs 3 and each brokerage house employs 15, there are about 50.000 professionals working in this sector. These professionals serve every day to 68 insurance companies, communicating with them thousands of times a day. Since all the processes like proposals, policies, claim files, collections etc. become dull after a point, it is possible to use gamification methods to bring the fun out of the routine processes.


According to the market researches, companies using gamification method report 27% higher profits, 50% more sales, 50% more customer satisfaction and 38% higher productivity. Another research suggests why gamification is going to be successful on employee engagement. 39% of the research participants claim that they are being undervalued at their work place and 77% of them claim that they would have worked harder if they were being treated fairly. Existence of an employee rewarding program establishes a reason to stay for 66% of the employees.


How to gamify insurance?


Let’s address the main topic of the blog, how can we relate gamification with insurance business? The player profile will be the agent and/or the agency employee. In order to compare the performance of agencies and reward the better performing ones, we have to examine the daily routines of them. At an ordinary day, an agent creates proposals, issues policies, records collections and open claim files. Points can be defined for each of these actions and agents can earn points through their daily actions. Besides the daily routine, insurance companies reward the agents with a “clean” portfolio (low loss ratio) through additional premiums. Badges can be used in gamification methods in a similar way to reward agents so they can receive the attention of other agents as well.


Since insurance is a service-based business, the fastest service can also be rewarded. The highest policy issue average time can be rewarded with a “Supersonic Cup”. Most of the companies just use premium levels to compare agencies, using gamification methods a lot more comparison criteria can be used to create leaderboards. The most effective way to engage sales employees is to tell them how much more they need to meet their goals. Gamification in this sense offers the best method to inform players instantly and dynamically. Challenges between agencies can also be considered as a valuable option to make them run towards their goals.


Use PayFlex Sales Team Motivator to differentiate from others


Innova’s state-of-art solution PayFlex Sales Team Motivator is the only tool you would need to create an employee engagement program. Companies using gamification methods will not only engage their agencies, but agency employees will also get a sense of belonging since the tool can determine and reward the performance of every single player. Gamification methods can be valuable to reward agencies when they create a lead, issue a policy or even complete customer data. Employee engagement program can also be linked with the current commission structure to reward agencies with higher commissions or web-based e-commerce shopping sites. Thanks to the main platform of PayFlex Loyalty, all the above-mentioned rules and furthermore can be defined on the road to employee engagement and turning agencies into valuable and loyal business partners.