Business Made Easy Integrated Technology Solutions Key to Success

Just what are independent agents looking for when it comes to technology?

That was the question posed to a number of industry experts who all seemed in agreement—in order to compete in today’s workplace environment, independent agents need to have the latest tools at their disposal.

While the paper trail still exists, experts agree that managing general agents need to offer the latest in technology in order for agents to have a good chance to be successful.

Partnering for the benefit of agents
Chris Hull, vice president of business development for Florida-based Hull & Co., commented, “There are two main things we’ve done over the Web. We’ve partnered with a handful of different companies that have developed online quoting tools and we manage the ultimate underwriting, binding and policy issuance. This helps the agents get workable premium quotes in the hands of their clients more quickly. Also, we provide access on our Web site to various supplemental application forms that our companies require. This is far easier for our agents to use and it allows our staff to spend more time doing what the agents care about most, quoting business.”

Staying ahead of the curve is key. “When we talk to our companies they tell us we are ahead of the curve when it comes to technology,” Hull said. “In fact we’re farther ahead than some of our carriers. No question there is room for improvement and the ‘Next big thing’ will be how effective we are at putting even more of our tools in the hands of our customers. Still, the driving force in our business is product availability and speed of service. I’m not sure that the agent really cares if we’re using a supercomputer, or pencil and paper, as long as those two elements are there.”

When asked about keys concerns when purchasing technology, Hull remarked, “There are so many variables—scalability, aggregation, accounting, risk modeling, data warehousing, exporting data, etc. We’ve looked at almost every MGA system over the years and not one has ever fully met the unique needs of our business. They each have some great parts—but they come up short as a total solution. A typical MGA has a myriad of functions in a single policy transaction, so satisfying every need is very difficult. Having said that, those MGA system vendors are getting closer every day. We have had the luxury of developing our own over the past 10-plus years and the key to our success is that we allowed the users, rather than IT, to drive development from the beginning.”

Diane Smith, director of marketing and e-business for Indiana-based Arlington/Roe, pointed out “MGAs don’t purchase technology for agents. In other words we do not purchase their software or hardware for them. However, in purchasing automated systems, MGAs look for ways to gain efficiencies internally initially that will add value-added time for the retail agent in doing business with the managing general agent. For instance, Arlington/Roe is updating our own agency management system to streamline workflows internally, such as building a full database of information down to the policy level and getting rid of as many paper files as possible which will then benefit our retail producers in the long-run freeing up time to assist them with information at our fingertips.”

Meeting agent’s needs in 2004
Having technology is not only important for today’s agents, but making sure it is the latest on the market is also important.

“In today’s world it is necessary for retail agencies to have up to date technology, as the standard carriers are demanding this in order to do business with them,” Smith continued. “Most standards carriers have gone the route of proprietary Internet Web site-based rate and quote engines and in order to have a contract to do business with them, you must utilize their technology. As a wholesaler/broker, we are a supplement to the standard carriers, not necessarily a substitute. We strive to make the look and feel of our organization look similar to that of a standard carrier, using process such as subscribing to ACORD standards where possible. We have a system that is XML and AL3 compatible, which will allow us to build those bridges needed to receive applications automatically into our system in the future. Going to a wholesaler can be a scary prospect for a new or inexperienced CSR or producer. Keep in mind that we deal with over 100 carriers and their technology ranges from paper rate cards to very sophisticated Internet technology and everything in between. We tell the retail agents to begin with the ACORD application in their own agency management systems, and to include a complete narrative about the risk. In other words, they don’t need to reinvent the wheel, simply fax or e-mail the application to us initially. If there is a company-unique application or supplement that needs to be filled out our underwriters will get it to them. In most cases, we have these posted on our Web site for easy access. Along these lines, we have an easy to use Internet site chock full of basic information for our retail agents. The simple listing of markets and products available alone has been a big selling point to our agents. They just want to see if we ‘write it’ initially and then we deal with the technology and getting it in here on the back end. Obviously we know the technology is the tool that gets the business into us, but it is whether we can entertain writing the risk at all that is the overall selling point.”

Tammy Wilson, MIS Director for Michigan-based JM Wilson, remarked, “MGAs are implementing systems to improve customer service. Applications and quoting services are accessible via their Web sites, and imaging systems are allowing policies and quote information to be accessed in a matter of seconds. Turnaround times are improving.”

Lisa Erickson with California-based Builders and Tradesman’s Insurance Services, pointed out, “We developed a proprietary system that pre-qualifies accounts from an underwriting standpoint and puts rating capabilities in the agent’s hands. Our system has logic built in to determine if the account passes a pre-screening through a series of yes/no questions and also has smart fields that test according to the parameters of the programs. We realize that the agents are interested in determining if we are ‘in the ballpark’ from a pricing standpoint so we have developed ‘price indicators’ that are very easy to use.”

Erickson went on to say that while “many MGAs and carriers think they are doing a good job just by posting forms and applications on their Web sites,” there is more to do. “Although this is helpful, it certainly does not address the fact that the fax machine will never be the ‘gatekeeper’ that you need it to be.” Asked what an MGA should be looking out for an agent, Erickson noted “Ease of use—from an agent’s perspective. It doesn’t get much simpler than that. If you have to pass out 10 pages of written instructions in order to get the agent through the system, it is not easy. If you have to ask the agent to go through 20 screens to get a price or submit an account, it is not easy. The old ‘KISS’ principle is alive and well when it comes to automation. If it is not simple, they will not use it.”

Steve Bowles, president of Arizona-based software development provider IMK Services, added, “In purchasing technology, MGAs are looking for solutions that have a retail agent focus, provide better, faster service, and make the agent’s life easier. For technology to get used, it must be much more than just shifting data entry to agents.”

“We live in the information age, and customers have high expectations that their agent can rapidly address their insurance needs,” Bowles continued. “Financial opportunities may vanish and frustration results as sluggish insurance processes delay the completion of business transactions or start of projects. Agencies have more and more work to do and they are looking for real productivity gains to help them meet their customers’ expectations.”

Panel discussion leads to findings
Panel discussions can oftentimes lead to breakthroughs and solve problems for many in the industry.

Jeff Yates, Agents Council for Technology (ACT) executive director, noted during a panel discussion at this year’s AAMGA meeting in New Orleans, “The real encouraging thing I see is that MGA’s really want to put a high priority on technology, working both on being easy to do business with for their retail agents, as well as having more efficient interfaces with their carriers.

“I think as agents increasingly look for carriers which are easy to do business with, they will look for similar real-time interface capabilities from their MGA’s. Similarly, MGA’s deal with multiple carriers and very often they’re being asked to go to these proprietary Web sites which is inefficient for them. There is the opportunity as well for the MGA’s to have the technology within their management system that allows them to deal with several companies. I was encouraged by the discussion that MGA’s are really focusing on the technology issue. As folks design their technology solutions, they’ll go in a direction that will be compatible overall. Another thing we talked about at the meeting is that wherever possible, MGA’s should incorporate the ACORD standards. Their management systems should have the ACORD standards to facilitate electronic interaction with their retail agents as well as their carriers.”

What’s on the horizon?
Where is technology headed for both carriers and agents?

According to ACT’s Jeff Yates, “On the horizon, I think it is very positive for the retail agents in the sense that they have long wanted to be able to work through their management systems using a consistent workflow with multiple carriers. Pieces of that are already starting to happen. A lot of progress has been made in the inquiry area in the last year. I think you will see some endorsement activity happening this year, along with some quoting activity and policy issuance. In each case, you’re solving the log in and password issue because that is handled automatically between the agent’s management system and the carrier. You’re also solving the duplicate data entry problem that drives agents’ nuts with having to deal with multiple proprietary Web sites.

“Agents are getting increasingly frustrated with the proprietary company Web sites, because what is often forgotten is that while a Web site might work well for a company that only has to worry about one solution, the agent represents multiple carriers. It gets very difficult to work with different work flows with each of these carriers, to train agency employees on each of these different Web sites, to have to log in and know the password for each of these Web sites, and to have to enter the data separately into each of these Web sites in order to decide which carrier provides the best fit for the customer.

“The other major area agents are working on is continuing to improve download. Agents need to get a nice, clean download that goes into your database without interfering with the data already there. A lot of progress has been made in personal lines, but we still need continued work in the commercial lines area.

“I’m encouraged by the amount of investment on both the carrier and agent side. Technology has the ability now to make a substantial difference in how we do our work. It is important for agents and carriers to stay up with the trends or they’ll be left behind and it will be tough to catch up. As I hear from carriers all the time today, the war they are now in is to be the carrier that is easy for their agents to do business with. Those carriers, which have implemented more efficient systems and workflows, are already getting a lot of positive traction from their agents.”

Yates noted that security is another key issue the agents will want addressed.

“As there are more connections to the outside world through our systems, there is also more security risk to be managed,” Yates commented. “Agents need to understand the risk factors and make sure they have taken the steps to minimize these risks. Also, our society is demanding more privacy of information as reflected in the passage of a number of new laws. It is important for agents and brokers to know steps they must take to comply with these laws.

“I think we’ll look at 2003 as a major turning point in terms of significant progress in using these new real-time technologies within agencies. We’ve come a long way, but we still have a long way to go.”

As JM Wilson’s Tammy Dodd added, “Yes, we do see some carriers and MGAs that are not keeping their systems up to date. This makes it more cumbersome to do business. They can still meet their customers’ needs but maybe not as quickly as the customers are demanding it. This will turn them away. If you want to be a player, you’ll have to keep up.”

IMK’s Steve Bowles said that some MGAs are sitting on the bench waiting to be a major player on the technology front.

“While some MGAs are on the cutting edge of technology and are making ongoing investments to remain there, many are sitting back waiting for the agency management systems or carriers to provide technology,” Bowles remarked. “The gap between MGAs that are leveraging technology and those that are not will grow much wider in the next few years. In many cases, agents must present multiple markets to adequately perform their duties as a broker. If they have to access each market separately, then technology benefits them very little. Agents need integrated solutions before their benefits from technology will be significant.”

And BTI’s Erickson pointed out, “I think the insurance industry has made the entire buying process much more difficult than it needs to be. The agents want the ability to price accounts and receive a quick response from their underwriters. This can all be accomplished without losing underwriting control. Technology can be scary because, after all, we know insurance, not computers. But if you take the time to learn about it and get your feet wet, you will not be sorry.”

Good advice for those wanting their stake in today’s insurance technology world.

Topics Carriers Agencies InsurTech Tech Insurance Wholesale