Performance management and incentive design for Health insurance agencies: rewarding renewals and service as well as new policies
An incentive that pays only for new policies teaches staff to ignore renewals and claim help, which keep customers for years. A fairer scheme counts service as part of the job.
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Share your requirementsWhy performance management and incentive design matters in health insurance agencies
In many agencies, the advisor is paid for new policies and the support team gets a salary. The advisor chases the next sale, while the renewal caller, claim helper and office clerk do the work that keeps customers. They notice that recognition goes elsewhere, and the good ones look for a better employer.
A better scheme starts with what each role is for. Advisors: new business, renewals kept and customer feedback. Renewal callers: share of renewals done on time. Claim helpers: response time and follow-through. A small team element recognises that a renewal often depends on both the advisor and the support staff. Measures are few and discussed with the person.
How to set it up
1. Write what each role is for
A sentence each for advisor, renewal caller, claim helper and clerk, stating the result the agency wants from them.
2. Pick two or three measures per role
Advisors: new policies and renewals kept. Callers: renewals done before due date. Helpers: call-back within an agreed time. Clerks: forms free from errors.
3. Add a customer voice
After a claim or renewal, ask the customer one question and note the answer. Review comments in a monthly meeting.
4. Link a small part of pay to service
Make a modest share of incentive depend on renewals and feedback. Tell staff how the calculation works before the period starts.
5. Review twice a year
Sit with each person, look at the measures and agree one thing to improve. Adjust the scheme if it rewards the wrong behaviour.
Check these first
Before changing anything, find out what is true today. These take an afternoon and use your own records.
- Write down what each person is paid for and what they are not.
- Ask the renewal caller whether anyone notices good work.
- Check whether renewal dates missed are recorded.
- See if any customer feedback reaches the staff involved.
GullyHR can do this with you. Read how we approach performance management and incentive design in general, or share your requirements and we will tell you where to start.
Questions owners ask
Yes, in a light way. Ask one question after a claim or renewal and review the answers monthly. Look for patterns rather than rating individuals on a single comment.
Consider a small team element. The renewal and claim work often decides whether a sale lasts, and a shared element tells support staff their work is valued.
Twice a year for a formal talk, with a short monthly check-in. Small agencies lose little by speaking often and gain the chance to correct course early.