Insurance Industry
May 17, 2021

An Insurance Industry Case Study - Compass for Agent Recruitment Personnel

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

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: 500

Levels: Executive (Level 1) and Junior Manager (Level 2)

The company’s full-time sales executives (called the Recruiters - POS team) have the following activities as their deliverables:  Code generation, Activisations, and Premium collected. The POS team primarily visits businesses in their territory to recruit them as Insurance sales partners. When the business owner signs up as a partner, it is called a ‘code generation ’(expressed as a new recruitment count). When a business owner sells a policy, it is called an ‘activation’ (this is expressed as a count of policies sold). The total premium collected by the business owner is expressed as ‘Premium collected’.

While there are monthly reports of Code generation, Activisations, and Premium collected sent out to the POS team, they need to raise a request to update the number of activisation, the premium collected, 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 POS 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:

Both the Level 1 and Level 2 recruiters are eligible for the incentive if at least 40% of their new POS agents have been active. Yet again,  a POS agent will be considered active only if they meet the following conditions: 

  • The POS agent needs to be newly recruited within the current month
  • The POS agent should have generated a minimum of INR 1000 Premium. 


Conditional Incentive Slabs:

Achievement Conditions:

One active POS within same month: INR.50/-

Two and above active POS within same month: INR.100/- per recruitment (codes generated)


Level and Tenure Conditions:

Level 1 and Tenure 1 Month: 

Recruitment Target: 10

Incentive: Rs.100 per recruitment


Level 1 and Tenure > 1 Month to 6 months: 

Recruitment Target: 25

Incentive: Rs.100 per recruitment


Level 2 and Tenure 1 Month: 

Recruitment Target: 14

Incentive: Rs.150 per recruitment


Level 2 and Tenure > 1 Month to 6 months: 

Recruitment Target: 35

Incentive: Rs.150 per recruitment

 

Nudge Conditions:

Target milestone wise nudges for:

Level 1 and Tenure 1 Month: 

Cumulative Recruitment Milestones: 3, 5, 8, 10

Frequency: Weekly


Level 1 and Tenure > 1 Month to 6 months: 

Cumulative Recruitment Milestones: 7, 13, 19, 25

Frequency: Weekly


Level 2 and Tenure 1 Month: 

Cumulative Recruitment Milestones: 3, 7, 10, 14

Frequency: Weekly


Level 2 and Tenure > 1 Month to 6 months: 

Cumulative Recruitment Milestones: 9, 18, 27, 35

Frequency: Weekly


Performance warning nudge

The Level 1 and Level 2 recruiters who have not achieved a minimum 75% of their recruitment target and 25% activation in a quarter need to be notified with a performance warning nudge to improve their performance - else face separation in the coming months.

 

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 100 end-users
  2. Comparison of adoption of Performers Vs. Nonperformers
  3. Comparison of business data of the previous with the implemented period


User Survey Results

Datapoint 1: Awareness of Compass

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



Datapoint 2: Source of Awareness

Webinar + leaders (indicating top-down messaging) contribute to 68% of the download compared to Whatsapp (Grassroot messaging).



Datapoint 3: Compass Installation Status

The successful awareness initiative leads to a successful number of downloads.



Datapoint 4: Regular use and viewing of Compass Programs and groups

A successful number of downloads and awareness initiatives pushed the feature usage.

Datapoint 5: 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.





Comparison of adoption of Performers Vs. Non-performers

Performers seem to be heavy adopters of Compass.

Performer Cohort


Non - Performer Cohort

Comparison of business data of the previous with the implemented period

Achievement - April’21 1-15 period Vs. April’21 15-30 period

Avg. Codes Generated per Team member

Growth: 136%


Avg. Active recruitments per Team member

Growth: 100%


Growth comparisons 1st half to 2nd half of Month - Feb, March, April (period of implementation)

Overall growth % in codes generated.



Overall growth % in active recruitments



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