The Route to Real-Time Transactions
Insurance Networking News, April 1, 2008
Carriers, agents/brokers, vendors and industry experts have been discussing single-entry, multiple company interface (SEMCI) for years. “It’s coming; it’s going to make a big impact on the industry,” they’ve heard from peers, media and industry experts. Whether it’s called SEMCI or real time, the time may have finally arrived, as carriers by the handful have implemented real time over the past few months. MetLife Auto & Home, Peerless Insurance Co., Farmers Insurance Group of Cos., The Progressive Group of Insurance Cos. and The Main Street America Group are some of the most recent to implement.
MetLife Auto & Home, New York, launched an integrated SEMCI-based solution, branded as PowerLink, which will provide the company’s independent agent/producer force with greater convenience and ease of doing business. Under the PowerLink name, the company will partner with comparative rating and management system vendors to introduce new technology solutions to agents across the country.
Advertisement
MetLife is just one of many carriers recognized by the Get Real Campaign, a group of agents, brokers, carriers, technology providers, user groups and industry associations united to advocate implementation of real time and download interface applications by independent agents and companies.
If all the nation’s agents feel similar to New York state independent agents, carriers may need to examine their real time implementation efforts. According to responses to Independent Insurance Agents & Brokers of New York Inc.’s (IIABNY) 2007 Technology Survey, nearly 65% of respondents had adopted real time inquiry in their offices, with many citing the benefits on quoting and billing, policy, claim and loss run transactions. Less than half (44.8%) of respondents indicated their offices implemented real time rating. But those who implemented found the programs provided accurate data, improved workflow efficiency and decreased data entry duplication. Thus, they are getting faster turnaround of personal lines quotes for multiple carriers.
In another IIABNY survey — “Industry Index: The IIABNY Members’ Report on Carrier Performance” — New York agencies’ named Peerless Insurance, Keene, N.H., among the best carriers to work with. Peerless’ agency interface manager, Deirdre Forte, believes the company’s real-time offerings contributed to its high ranking. The offerings include personal lines on four comparative raters, Transformation Station for personal lines, commercial lines (enhanced with Web edits), alerts, claims, billing and loss-run inquiries and, for University Park, Ill.-based Applied Systems Inc.’s agency management system users, first notice of loss; and TransactNow, from Bothell, Wash.-based AMS Services, for claims, billing and loss-run inquiry.
The implementations didn’t come without challenges. The first challenge Peerless faced was deciding where to begin to get the most out of its technology resources. “We overcame this challenge by reaching out to our agencies to help us prioritize which of the many real-time transactions contribute most to easing their workflows,” Forte says. “To date, we have implemented all the inquiry functions, personal lines rating, real time alerts with Transformation Station and, most recently, claims download.”
Other carriers are feeling the real time pressure from their agents. “I’ve had some pretty private and frank conversations with carriers,” says Scott Morrison, VP of marketing, Sircon Corp., Okemos, Mich. “They say, ‘we didn’t want to do this, but if we don’t, our competitor is going to do it. Then we’ll be known as the carrier with manual paper processes, and our competitor is going to be connected electronically,’ which may be a deal-breaker when it comes to business.”
Los Angeles-based Farmers Insurance Group recognized its independent agents’ desire. “Many independent agents requested we bridge data from their agency management system to our eAgent system to save them time in quoting and processing policies,” says Adelaide Robertson, who serves in the Independent Agent Management Market division of Farmers.
Farmers licensed AgencyConnect software from Boston-based AgencyPort Inc. to transform and maintain a single incoming data structure that is mapped to the company’s eAgent Web system, which enables independent agents to process and service new and existing business. For this interface initiative, Farmers used AgencyConnect to help implement IVANS Transformation Station and TransactNOW for real-time bridging of data from AMS and Applied agency management system to Farmers’ business applications.
Carriers may be worried that if they enable real-time capabilities, agents won’t take advantage of them. In fact, at a forum held by the Professional Insurance Agents of New York State Inc. (PIANY), Scot Palzer, director, personal lines Integrated Solution for The Main Street America Group, discussed the Jacksonville, Fla.-based carriers’ usage of real time. The Main Street America Group generates monthly real-time usage reports for its agency. After recently rolling out commercial lines download, Palzer said the company is somewhat disappointed with the usage so far. “If we don’t see the usage by agents, it’s difficult to justify additional investment,” he pointed out.
In a report — “The IVANS 2007 RoundTrip Agent Survey: A Discussion on Real-Time and Download Services” — conducted by Stamford, Conn.-based IVANS Inc., 63% of 318 insurance agents surveyed currently use real time.
While Forte is seeing real-time usage by Peerless’ agents increase, 40% of its agencies are not taking advantage of real-time benefits.
This may be because agents don’t know it’s available. “Many agents don’t realize that the real time we talk about through their management system is already in their system if it’s a later system,” says Jeff Yates, executive director for the Alexandria, Va.-based Independent Insurance Agents & Brokers of America’s Council for Technology. “They just have to go through the steps of turning it on, which is not an elaborate process.”
For more information on related topics, visit the following channels:
