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The Client: The client is one of the oldest and largest insurance groups in South-East Asia with millions of policy holders and thousands of agents worldwide.

Overview

Manual processes and spreadsheets hindered the client’s ability to comply with the Balanced Scorecard Framework requirements proposed by the Monetary Authority of Singapore (MAS). With the MetricStream Balanced Scorecard Framework Solution, the client was able to automate the performance assessments of financial advisors, and track their “non-sales” KPIs more effectively, thereby strengthening compliance with MAS requirements.

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Solution

After evaluating various BSC framework solution providers, the client selected the MetricStream Balanced Scorecard Framework Solution due to its integrated, flexible, and highly configurable platform capabilities, as well as its business process configurations, robust integration functions, comprehensive reporting and analytics, and effortless extensions via configurations and customizations. Deployed on a scalable platform infrastructure, the solution can be extended to match the business growth of the organization.

The solution enables compliance with FAIR’s BSC framework proposal by helping the client review and assess the performance of financial advisors based on “non-sales” KPIs, and generate reports to relevant stakeholders. Measurement methods include post transaction checks (through detailed Financial Life Plan (FLP) reviews and client surveys), mystery shopping exercises, and infractions arising from complaints.

The solution streamlines and automates the client’s performance review processes, and makes it easy to create reports for MAS regulators every quarter. It also helps motivate financial advisors to provide quality information and appropriate recommendations to customers. With a centralized data model, the solution provides the capabilities to create, modify, and design various data objects and their attributes.

The MetricStream Balanced Scorecard Framework Solution offers the client multiple business specific capabilities that include:

Balanced Scorecard Management

Built on the MetricStream GRC Platform, the solution helps the client capture performance data on each financial advisor based on the quality of advisory and sales services provided, the suitability of recommendations, and adequacy of information disclosure. This has allowed the client to effectively manage non-qualitative performance criteria under the MAS BSC framework.

The solution also supports performance evaluations through balanced scorecards that incorporate a combination of inputs from different sources. In addition, it helps generate performance ratings based on categories or groupings of various qualitative metrics. This has simplified the computation of overall performance scores for financial advisors, based on specific business requirements.

Robust Workflow Engine

The MetricStream GRC Platform’s embedded workflow engine supports the client in managing complex business processes to capture information, and generate a balanced scorecard based on industry best practices. The platform helps in controlling the routing of information, managing the relationship between different data records, and assigning business actions/ tasks based on predefined rules and conditions. All these workflows come together to help the client enhance “non-sales” performance management.

Powerful Integration Functions

The MetricStream solution provides connectors or Infolets which integrate with external systems such as Autosys and IBM MQ, as well as existing customer systems such as Eworkflow (which stores basic information on processes) and Synergy (which stores all policies). From these systems, the solution captures relevant data needed to meet the BSC framework requirements, and loads it in the MetricStream database and API tables. Therefore, instead of manually having to extract all this data, the client can do it automatically with the MetricStream solution, saving costs, and improving efficiency.

Configuration Capabilities

The MetricStream solution is integrated with the MetricStream AppStudio tool which offers the client’s IT departments the flexibility to independently extend the solution to meet their evolving needs. AppStudio provides a range of features including a robust workflow designer (to create business-specific workflows and processes based on industry best practices) and a form designer (to add form fields and elements based on business needs) which enable the client to easily and quickly adapt the solution to their requirements. The solution also supports Web Service APIs, multi-lingual requirements, and e-signatures.

Advanced Reporting and Analytics

The MetricStream solution contains built-in data analytics, as well as powerful reports and executive dashboards that provide real-time business intelligence on the performance of financial advisors. These tools also simplify and accelerate the creation of various types of dynamic reports and data visualization charts for business analysis.

Regulatory Reporting

The solution’s reporting engine automatically populates MAS reporting templates every quarter with relevant data based on the BSC. It also helps export the data into the preferred reporting format. This has made it easier for the client to comply with MAS reporting requirements, and to submit all reports in a timely manner.

Challenge

In South-East Asia, the regulatory landscape of the Life Insurance industry is changing in response to initiatives proposed by the Monetary Authority of Singapore (MAS) under the Financial Advisory Industry Review (FAIR). Targeted at modifying the way life insurance products are advertised and traded, the FAIR proposals recommend a Balanced Scorecard (BSC) framework for the remuneration of financial advisors. The BSC framework is targeted at promoting good behavior by encouraging advisors to meet “non-sales” KPIs such as providing quality advice and suitable recommendations to customers. Advisors’ performance in these areas affects their variable income.

Earlier, the client managed advisor remuneration and performance using manual processes based on spreadsheets. However, this approach became increasingly inconsistent and burdensome, given that there were thousands of advisors in multiple locations whose performance had to be tracked. The client simply didn’t have sufficient visibility into these “non-sales” performance metrics, thereby making it challenging to suggest improvements, and prepare regulatory reports. Without effective dashboards and reports, as well as data mining and consolidation tools, there was no way to accurately track if representatives were indeed providing valid recommendations to customers.

All of this affected the quality of sales processes. A majority of the transactions submitted by financial advisers led to inappropriate dealings because proper recommendations had not been provided to customers, prior to selling them a product. This, in turn, adversely impacted the client’s brand, and made it difficult to reach revenue targets.

To overcome these issues, the client needed a solution that would help them strengthen compliance with the BSC framework requirements, align the interests of financial advisors and consumers, and strengthen “non-sales” performance among representatives and supervisors.

Benefits

  • Consistent Compliance with Complex Regulations
    The solution has given the client a single point of reference to effectively manage and track the “non-sales” performance metrics of thousands of financial advisors. It also helps identify areas of improvement that would enable advisors to provide valid recommendations to customers as part of product selling. This, in turn, has helped the client strengthen compliance with the BSC framework requirements of FAIR.
  • Improved and Automated Performance Review Processes
    The solution has simplified and automated the process of evaluating and grading financial advisors based on their performance. For instance, it automates policy sampling processes (based on a pre-defined complex logic and criteria) to check if performance guidelines have been met. It also highlights infractions in case of a deviation from the performance criteria.
  • Streamlined Workflows for Balanced Scorecard Management
    The solution has minimized process inefficiencies and gaps by streamlining workflows for performance assessments, balanced scorecard management, and reporting. Automated alerts keep the process on track, and help ensure that reporting deadlines are met.
  • Greater Visibility into “Non-sales” Performance Metrics
    Sophisticated analytics, dashboards, and charts provide comprehensive, real-time visibility into the performance of financial advisors, as well as associated issues and infractions. This birds-eye view enables the client to identify under-performing agents, strengthen KPIs, prevent inappropriate sales practices, and thereby strengthen brand value.
  • Automation of Balanced Scorecard Reporting to Regulators
    The solution expedites the process of creating and sending reports to relevant stakeholders, including the MAS regulators, on a quarterly basis. This has helped the client build credibility by responding to regulatory requirements quickly and proactively.

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