Enterprise Incentive Management for Life Insurers: Getting Control of Distribution

May 24, 2004

Abstract

New York, NY, USA May 24, 2004

Reports Published by Celent

Among the challenges facing life insurers, managing an increasingly complex array of distribution channels is near the top of the list. A good Enterprise Incentive Management suite can help manage distribution while driving profitable producer behavior.

In a new report, " ," Celent helps to define EIM for insurers, examines the challenges that are driving insurance carriers to purchase EIM solutions, and profiles six EIM solutions currently in use at life insurers.

In addition, the report examines best practices for vendor selection, as well as for implementation. Case studies of EIM implementations at Penn Mutual Life Insurance Company and American United Life illustrate the value of such systems.

"EIM suites no longer just manage variable compensation," said Chad Hersh, a senior analyst in Celent’s insurance practice and author of the report. "Most of the offerings now include complete solutions for distribution management."

The solutions profiled in the report are: CSC’s PerformancePlus, Trilogy’s Distribution Channel Management, Callidus’ TrueComp, Centive/ EIM, ACTEK’s ACom3, and Synygy’s EIM Solution.

In the report Celent projects that spending on new, domestic EIM projects will grow from US$15 million to US$79 million by the end of 2007. "In three to four years, this will not be a tool for competitive advantage; it will be a cost of doing business with top producers," said Hersh.

The 44-page report contains 11 figures and 6 tables.

A

Table of contents is available online.

of Celent Communications' Life/Health Insurance research service can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

        

Send mail to info@celent.com with questions or comments about this Web site.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

New York, NY, USA May 24, 2004

Enterprise Incentive Management

Return to report Abstract

 

EXECUTIVE SUMMARY 3
INTRODUCTION 5
IT AND BUSINESS DRIVERS FOR EIM ADOPTION 9
BEST PRACTICES FOR SELECTION AND IMPLEMENTATION 12
CASE STUDY: PENN MUTUAL 15
CASE STUDY: AMERICAN UNITED LIFE 18
VENDOR PROFILES 21
VENDOR COMPARISON 40
CONCLUSIONS 41
OBJECTIVITY & METHODOLOGY 43

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