Insurers Focus on Agency Satisfaction
Insurance Networking News, January 1, 2009
With the growing trend of direct-to-consumer insurance sales, some industry experts have questioned the future existence of the agency network. However, news from many carriers leads one to believe independent agencies aren't going anywhere anytime soon. In fact, carriers and agencies are taking steps to improve the relationship. Ease of doing business/time to market was among the top three priorities of CIOs/CTOs surveyed for Boston-based Celent's "Insurance CIO/CTO Pressures, Priorities, and Plans in 2008." Survey respondents said they are focused on getting new business in the door, servicing it efficiently and using more modern infrastructure. New business may come from independent agents and brokers, or from exclusive agents.
These channels need the right tools to bring in business. "Our agents generally ask us for simple, practical ways to make it easier and faster for them to get their work done and support our mutual clients," says Steve Yacik, e-business manager of Chubb Group of Insurance Cos., Warren, N.J. "Even small, incremental improvements that reduce tedious data entry, or more closely integrate the agency system with our system are very much appreciated by our agents."
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In its research, Celent finds that improving agent efficiency is important. "That points toward reuse of data as a key issue, and solving the data problem helps the agent become more efficient, which, in turn, helps the carrier become more efficient," says Craig Weber, managing director of the firm's insurance group. "In the P&C world, it's uploads and downloads - leveraging agency management systems. Because there is less use of agency management systems on the life side, the issue is less prominent - it's generally electronic data capture for new applications for new business. There's more of a use of proprietary technology on the life side. You have a better chance of getting an agent to go to a carrier's (proprietary portal)."
AGENCY MANAGEMENT SYSTEMS
In February 2008, Celent asked 200 independent agents about their preference between proprietary tools and multicarrier tools, such as agency management systems. Almost seven out of 10 respondents say they will use either type of tool, as long as it makes their job easier. The other three out of 10 are split, with a slight preference for multi-carrier tools.
Celent believes that support for agency management systems, channel-specific platforms like those provided by the national broker/general agents (BGAs), and robust proprietary systems is essential for carriers that wish to meet the needs of a broad spectrum of independent producers. But for all types of tools, the focus must be on crafting a solution that feels seamless to users.
And, for Bennion Taylor, a Murray, Utah-based agency, syncing with its agency management system does simplify some of its day-to-day activities and, therefore, improves the relationship and communication with its carriers. While Bennion Taylor implemented AMS 360 agency management system from Bothell, Wash.-based AMS Services, the vendor contacted carriers to work with them on connecting with it. "Some of the companies won't do it, but the larger ones will," says Don Taylor, president of Bennion Taylor.
By using the agency management system with the carriers, the agency reduced account quote time by 83%. "We used to print out a form, fill it out by hand and fax it to each company for a quote, which could take up to an hour," Taylor says. "Now, we create a form on AMS 360, fill it out online, and because AMS 360 interfaces with Microsoft Outlook, we submit to the carriers electronically. The process that took an hour now takes 10 minutes."
Taylor took advantage of the quick quoting process and developed a contest with underwriters to see how fast they could complete an application. "With one of our underwriters, we put an application together in seven to nine minutes and sent it over to them. From the standpoint of making sure you have the market blocked, it's unbelievable."
Putting agents in direct contact with underwriters is a powerful tool, according to Weber. "It's almost counterintuitive at first blush; you try to automate a process - get an electronic data stream and aim for straight-through processing. But when an important agent runs aground in the process or has a question, it's nice to switch gears and go to a high-touch model," Weber says, naming e-mail as the method many agents use. "Selectively is key, because if you tell every agent, 'here's your underwriter; call them with any questions,' your underwriter would no longer be underwriting. He'd be fielding a fire drill."
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