Commission Management outsourcing is the latest buzzword these days as its advantages far outweigh its disadvantages. This is because there is a noticeable shift in the management strategy towards the goal that anything which is not related to core activities of the business should be outsourced and the main focus of the business should the majority be on the 2 key aspects i.e. business growth and development. Back office support services mainly include data entry; payroll management, policy management, insurance claims and commission management. These processes are outsourced to the outsourced agencies so that they can handle all the non-core activities of the business and the firm gets the leverage to pay more attention to the core aspects of the business.
Commission management service which includes commission payout and processing is indeed the most complicated in nature as compared to all the other outsourcing services. This is because it is a form of payroll services with flexible amounts which might vary. Every policy scheme has its own rate of commission which is payable to agents. Henceforth, no two agents will have the same amount payable in a given period. If we multiply this with thousands of agents to whom the commission needs to be paid, we will understand how complex the commission payout process is. Thus outsourcing commission management services are truly beneficial in the insurance sector.
Benefits of Commission Management Outsourcing Services
- Essential Infrastructure:: – Undoubtedly, processing commission management services requires highly advanced and refined hardware and software if a huge volume of calculations has to be done periodically with a great deal of accuracy. Service providers have this infrastructure in place and this helps the insurance companies to save a huge amount of investments in the given arena. The benefits of saving can be passed on to the policyholder in the form of more competitively priced schemes.
- Security of Data:: –Data security plays a vital role in outsourcing commission management. The insurance company provides the outsourcing firm with the details of monthly sales of each agent along with the policies sold by him for commission calculation. A huge volume of data is involved which can’t be compromised in any manner. Outsourcing commission management services to the outsourced firm are truly beneficial the outsourced firm works on the specifically designed Commission Management software package which is completely secure. This package is not only fully secure; but, it also facilitates high accuracy of data processing results.
- Focusing on Core Activities of the Business:: –The major benefit that the insurance company gets after outsourcing the commission management services is that they are free to focus on the core aspects of the business i.e. business development and increasing the turnover and profitability. Further, the insurance company also gets relief on manpower deployment as after they outsource the work, it is the responsibility of the outsourced firm to hire the employees and make the work get managed. These services give flexibility to the insurance company to optimally utilize their human resources.
These are the some of the reasons as to why it is valuable/profitable for the insurance companies to opt for outsourcing their commission management services. Employee pooling is one of the renowned Business Process Outsourcing Company which has been providing commission management services to our clients from a long period of time. With Employee Pooling, your commission management programme is in secure hands. We make full use of technology to accommodate the changing regulatory landscape while maintaining a high level of personalized client service.