“Versata is helping Penn Mutual by shimeiyan1


									                                                        “Versata is helping Penn Mutual
                                                        increase profitable sales growth.”
                                                        Bob Chappell, Chairman and CEO
                                                        The Penn Mutual Life Insurance Co.

                                                                                       Customer Success Story - Penn Mutual

Leveraging Distribution For Profitable Growth
Large and complex distribution channels have always been as much a challenge as an opportunity for life insurers. Especially in today’s
increasingly dynamic market, Penn Mutual knew that distribution inefficiencies were hindering its ability to continue to effectively meet the
changing needs of its field managers and producers while keeping corporate revenue and expenses in line, and the company responded.
With Versata’s Distribution Channel Management System as its new platform, Penn Mutual is now on a path to increase profitable growth
and support its multi-channel selling relationships.

The Challenge
After 150 years, the mission of The Penn Mutual Life Insurance Company has remained constant – helping clients achieve a lifetime of
security. To do this, Penn Mutual has always focused on developing deep relationships while providing superior support to its agents,
financial advisors, producers, and most importantly, clients – who number over 450,000 today.

As was the case with most insurers, Penn Mutual’s relationship with its producers, agents and financial advisors was hindered by a lack of
flexibility and overall effectiveness in distribution, brought on by:

• Outdated compensation and reporting processes
• An inability to react quickly to changing needs
• Lack of an ideal mix of business
• Exposure to compliance issues in the licensing and registration processes

Penn Mutual realized that modifying inflexible legacy systems to solve these problems would be prohibitively expensive and time-
consuming. Instead, the company needed to create a new distribution channel management system that would:

• Ensure profitable growth, not just growth
• Include both proprietary products and those from other revenue sources
• Further leverage distribution costs for greater revenue
• Create a more accurate P&L statement, with greater detail and more effective management information

In searching for a strategic partner, Penn Mutual realized that only a provider with a powerful and proven insurance-specific solution could
help it truly realize the intended results.

“Penn Mutual needed a dedicated partner who not only understood distribution, but also had a deep grasp of
the nuances of our industry. We could not be more pleased with Versata’s focus and commitment to our goals
and our continuing, measurable success.”

James Clary, VP of Sales Operations, The Penn Mutual Life Insurance Company.
Versata Solution Brief

The Solution
Penn Mutual’s strategic distribution management “SCORE” project                          With Versata’s Compensation solution, Penn Mutual is also lowering
was ambitiously designed to reengineer the distribution back                             expenses through:
office, improve flexibility, eliminate inefficiencies and upgrade
                                                                                         • A single system of record and single source for information,
information quality and availability.
                                                                                           allowing the company to better manage producer relationships,
Through such vast improvements, SCORE was also intended to                                 particularly in compliance and customer service
better meet compensation needs of producers, eventually aiding in
                                                                                         • Significantly reduced risk of fines and other regulatory sanctions
agent retention. Ultimately, the SCORE project estimated a 10%
revenue increase along with significant expense savings. With                            • A streamlined licensing and contracting process
these goals in mind, Penn Mutual turned to Versata for a compre-
hensive Distribution Channel Management System.                                          Business Benefits
The SCORE project was poised to realize measurable success from                          Since the project’s inception, Penn Mutual has enjoyed an on time,
the beginning. The insurer worked with Versata to build a multi-year                     on budget technology deployment with Versata, enabling the
strategic plan to prioritize the most valuable projects first, and                       company to realize increased revenue and decreased costs on the
ensured project goal alignment between the business and IT side                          following levels:
of the organization.
                                                                                         • Amount of time to implement new compensation plans reduced
With the Versata Distributor Administration and Credentials                                by 75%
Management solution, Penn Mutual will be able to realize revenue
increases from:                                                                          • Compensation accuracy dramatically improved, leading to
                                                                                           profitability in the distribution organization
• The ability to handle diversified distribution channels– expanding
  distribution, handling more clients and selling more business                          • Recruiting, hiring and training costs expected to decrease by 20%

• Improved producer servicing with accurate commission                                   • New compensation plans and information expected to drive
  statements, improving agent retention information and support-                           cross-selling of products and encourage top producers to place
  ing profitable growth                                                                    more business with the company.

• The power to introduce new products and compensation plans                             Ultimately, Versata’s Distribution Channel Management System
  faster, accelerating speed to market through new channel points                        enables Penn Mutual to more efficiently support its field managers
                                                                                         and their complex organizations, while delivering flexible compensa-
• Flexibility in compensation structures                                                 tion structures tailored to producers’ needs—leading to increased
                                                                                         sales profitability.

 For over a decade, Versata has helped create business success for Global 2000 companies. To learn more about what we are doing for Penn Mutual and
 how we can help your business, visit www.versata.com.

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