1. Change The Way We Do Business The Carrier-Agent Connection
Internet Solutions
Change The Way We Do Business
The Carrier-Agent Connection
We want to discuss agency management systems, agent expectations for information and insurers willingness and ability to provid it. We will start with the agent/carrier expectations and issues and then Jim will talk about how Beacon responded and the solution they decided on in providing policy information service to their agents.

2. New Expectations Technology increases customer expectations
Experience with websites with unique tools increases customer desires
One step processing & self service are becoming the norm
Agents are beginning to demand this level of access from their carriers
People spend more time on the internet both at work and at home. They can shop, get information, attend school and buy insurance. Agents used to accept certain inconveniences such as frequently reentering data but as they spend more time online, agents expect the same level of service from insurance carriers that they received for the Amazon.coms of the world. As the one-step process and self service becomes the norm, agents are now demanding this same level of “ease of doing” business from the carriers. They no longer want to enter data twice and if they have to, they are likely not going to use your company.

3. Carrier Considerations
ROI – Is it possible to measure
How is it measured
What are the real costs for the carrier
Are their real benefits for the carrier
How does a carrier choose a solution
Very few organizations are measuring ROI of their portal projects
It is difficult to state an ROI on a product such as this because you are relying on the fact that the agents will: 1) Use it and 2) give you more business as a result of building the application. There are dozens of potential solutions for providing the tools and information that the agents are looking for so determining which one will fill the need for the majority of agents is a lengthy process. It requires numerous visits with the stakeholders as well as the carrier making a decision to change the way they do business in order to take advantage of as many benefits as possible. Many carriers consider these types of projects the cost of doing business so ROI has not been a consideration for these companies and it has not been measured.

4. Business Case Considerations
Cost vs. return
What is the “pay-back”
Will it actually improve revenue
Will it reduce internal work loads – on-line quotes and STP
Electronic delivery of documents – savings
Does it improve communications and collaboration
Because there is very little information on ROI for these applications, the carrier will have to make many assumptions as to whether or not it is a good investment. The carrier will have to assume that the application will actually reduce internal data entry and customer service work. They will have to assume that their agents will use it as promised and bring them business as a result. There may be some savings in paper and postage due to the electronic handling of documents but it will be so small it is likely not measurable. The costs for these applications are all on the carrier so the carrier assumes all the risk.

5. Agent’s Perspectives Pressure to produce quotes quickly
Need tools to make job easier
Access to information
Ability to manage accounts on-line
CSRs are likely to place business based on ease of doing business.
Agents are under a great deal of pressure to process information quickly. Because we do now live in a world of technology and users are more demanding of instant information, customers do not want to wait weeks for a quote. Agents are going to carriers where the information is readily available and in some cases, they are not required to even speak with the carrier before issuing a quote. Does this service sell policies over price? Do agents push policies by these carriers because they are easier for the agent to do business with rather than looking for service and price to the customer? Will phone calls be reduced because agents are answering questions rather than referring the calls to the carrier?

6. Top Priorities Among P & C Insurers
Ranked in the top 25 by Gartner Industry Research (2007)
Policy Administration Systems
Self Service Portals
Agent Portals
Agent Commissions
SEMCI Models (like IVANs)
The survey ranked the top business and technology priority for P & C insurers. Architecture and Policy Administration Systems were 1 and 2 with Self Service Portals coming in at number 3. A 2010 survey by Gartner still has internet and portal technologies in the top 10.

7. Internet Demand Growing appetite for: Use of internet for quoting
Use of internet for sales
Self service portals for customers
Billing Information
Claim Information
Policy Information
Commission Statements
Most of the people who will be using these services are the CSRs not the agents. This was information we discovered from our on-site agency visits. The easier your portal is to navigate, the less complaining the agents hear from their CSRs the more likely they are to submit business to you.

8. Agent’s View of Key Benefits
Increased hit ratio
Can provide faster turn around times allowing agents to be more competitive with your business
Improve companies written premium
Better communications
Agents we spoke to told us that when they can provide faster turn around times for their clients they will utilize your company more often. Other carriers have noted that their quote submissions and hit ratios have increased after they initiated a portal with on-line servicing features. Both agents and carriers have noted that communications between them improved overall once a portal was implemented.

9. Internet for Sales and Customer Service
Legacy systems present challenges
Expensive to replace
Inflexible data models
Difficult to provide information externally
Majority of insurers are building out portal functionality for agents and brokers
22 AASCIF members current have on-line access
Several have either upgrading current or implementing new solutions
What we have found at MSF is that we are trying to determine the best way to implement some solutions for the agents to use. This will require that we build out new functionality on our current portal. However, we are also trying to determine what to do with our legacy policy system. Decisions need to be made regarding an interface to the legacy system or wait until we get a new one. Agents want it now. The question really is, “how much business would be retained and new business submitted if we changed our access to information?”

10. What Agents Want Policy data Claim data Commission data Alerts
Electronic policy documents
Access to your system
Ability to update your system
Simplify their workflow
Unfortunately, each agent wants something different and they want it available in different formats. They all have a different priority for what information they would put on their “wish list”. One area where we did get consensus is that they all would likely not enter payroll if we gave them that capability. They also don’t really want to be bothered with smaller premium business. And of course they all want higher commissions.

11. Issues with Delivery of Data
Agencies do not all use the same management systems
Agencies have different information needs
Some want downloads, others do not
Downloads difficult because of the various configurations needed for different systems
Some want FTP
Some want notifications
Workers Compensation data is more protected
We discovered through our agency visits that it will be difficult to please all agents because they are all used to working with certain programs. It is critical that you complete several stakeholder visits before taking on a new project because what you think the agent may want might not be the answer. In order to make whatever system or solution you decide to implement, there will need to be some “tough love” with the agents in forcing them to accept your new way of doing business. Receiving electronic copies of their policies is one area that you will likely need to force on some. Also, can a company demand a certain level of new business based on the carriers agreement to implement new tools.

12. Download
Agents expectations are very different from what carriers can or are willing to do
Download is a cost to the carrier
All agents don’t want it so why incur costs
Agents don’t want to set up downloads for each and every management system out there
Many agents want a great deal more access to claim information than we can statutorily give them. Some companies were providing claim notes and medical information. However, more and more of them are limiting this practice. Some companies are not willing to accept incoming information into their core applications. Can a company really see a return on investment?

13. Summary of Considerations
Buy vs. build and is the investment worth it.
Will carriers actually see higher hit ratios on their quotes
Will carriers realize higher written premium
What solution is the best fit
How to meet all the needs of all the agents
Getting agent acceptance
Answering their clients questions
Accepting only electronic documents
Find out how Beacon did it
Do you build out your own portal or contract with someone who will hold the data and allow agents to access it through their agency management system. Other issues to consider is the security of the information you are providing. One agent that we visited was receiving s from the insurance company with a link and embedded password which allowed the agent to see the policy and claim information. However, the was not encrypted.
For those funds that are providing agent access to information, have you had good agency acceptance? Are they using the system to answer client questions? Are your inbound phone calls regarding policy questions diminished as a result? Did you force your agents to accept electronic data?