By Wayland "Buddy" Hancock
AA&B January 1995
It always has been a struggle to keep pace with the latest technology, but falling prices in 1994 allowed many agencies to implement changes that they ordinarily would have deemed too expensive. As we take a look at this year's automation "wish list," many state-of-the-art products and services have become more affordable.
Nevertheless, don't buy a product just because it's the most up-to-the-minute development. Be sure it has the potential to increase your agency's total productivity. For example, ask whether a new hardware or software product will allow each CSR to handle more accounts. Will it help you prepare better submissions to insurers and better proposals for your prospects and clients? Would a new system be used as anticipated? Are you already using all systems you have in place? Keep these questions in mind as you read my list of 10 suggestions for your consideration.
1.) Faster computers. The processor or CPU is the heart (and brain) of a computer system. The faster the processor, the faster systems use LAN-based (local area network) client-server technology. To ensure that the network responds fast enough to keep the CSRs from waiting, you should have the latest CPU in the file server. For most agencies, that means using a Pentium computer (sometimes called a 586). For the CSR workstations (the clients), consider upgrading to at least 486SX computers.
If you're not ready to upgrade your entire system, you can increase speed by adding memory to your current computer. Consider 16mb for the file server and 8mb for client computers. You'll want at least that much memory if you upgrade to a Pentium server and 486 client computers, too.
Accessing CD-ROMs currently is a slow process on most computers, but prices have dropped significantly on the fastest CD-ROM drives. Consider moving up to a new triple-speed or 4x speed drive.
2.) Higher capacity disk drives. We discussed high capacity "gigabyte" drives last year, and now we're pleased to report that they're widely available and less expensive to obtain. They're worth checking out if you're filling your disk too quickly.
3.) Color printers. Low-end color ink-jet printers now sell for about $350. These units use one ink cartridge at a time, either black or colored. To print black and colored ink on the same page, the printer mixes the colored ink to make an "almost black" color with a faint green tint. For about $150 more, you can get a two-cartridge printer that uses a black and colored cartridge. With two cartridges, you'll print true black and color on the same page. Prices have fallen for high-end color printers, too, but they're probably not yet cost-effective for agencies. Until they are, consider using a lower-end color printer to produce your proposals. Even though they won't produce color photo-quality images, they're superior tot eh color plotters some agents have used to draw graphics on their proposals.
4.) Imaging systems. More vendors are adding image management (the ability to electronically capture, store, index, retrieve and distribute documents) to their agency management systems. If you're not ready for something that extensive, you can add a different type of imaging. If you have a CD-ROM drive, see if it can read Kodak photo disks. (If it meets the new MPC2 multimedia standard, it should have that capability.) If so, you can take pictures while inspecting a commercial account, have them transferred to a photo CD and place the CD into the account file folder. With the proper software, you can view the images on your computer screen and convert them to a printable format.
5.) Audio capability. Besides having CD-ROM drives for images, multimedia computers have speakers for sound. If you have a CD-ROM drive without sound, I don't recommend adding it- there are too many compatibility problems. But if you're getting a new CD-ROM drive anyway, go ahead and get the kit that includes speakers.
Computer sound is getting sophisticated and probably will be part of mainstream office applications soon. Some exotic application programs already exist. For example, a "talking scheduler" program literally will tell you, "Mr. Smith, you have an appointment with Mr. Jones in 15 minutes to discuss his Homeowners policy." A text-to-voice program will read aloud anything you enter onto a Windows clipboard. More practical applications allow you to insert a sound byte into a piece of electronic mail.
And, yes, you can speak to your computer, too, if you have a microphone. You can add your own voice to your "talking scheduler" so you don't have to type as many details into the system. Voice-activated programs and even voice-recognition programs also are available. Can you imagine a computer that responds only to its owner's voice?
6.) Windows. Two years ago, I recommended installing Microsoft Windows. This year, I suggest you seriously consider converting all your programs to this user-friendly environment. Most major vendors, if their programs aren't already available in Windows, are preparing to make this change. "Windows 95," a new version that doesn't require the DOS operating system, is scheduled for release this year.
7.) Integrated systems. Rating systems that are integrated with an agency's accounting and management systems save time because identical information doesn't have to be reentered into the computer. If you don't have integrated rating, definitely check with your vendor. Also, look for tighter integration of other programs, especially new Windows programs. The latest version of OLE (object linking and embedding) will make it easier for word processing, spreadsheet and other Window programs to share common data.
8.) Mass marketing. Last year, we advised you to integrate marketing software with your agency management system. This year, go a step further by initiating a mass marketing program using one of the new CD-ROM programs that give you names, addresses and other information on commercial-lines and personal-insurance prospects.
9.) Business CD-ROMs. Most commercial CD-ROMs are for personal entertainment. Despite this immature market, a few business programs exist that make CD-ROMs worthwhile.
When personal computers were in the immature stage, the LOTUS 123 program alone made it worthwhile to buy a business computer. Later, MECCA's Managing Your Money program did the same for home computers. Now, IMMS's Silver Membership Program makes it worthwhile to have a CD-ROM drive. The program includes George Nordhaus' insurance marketing and management manuals and many insurance company marketing programs. Since we first mentioned the program last year, it's become even better. (IMMS: 800-753-4467.)
The ISO Commercial Lines Electronic Manual Services (CLEMS), marketed by PIA, covers nine commercial lines in ISO's, 20,000-page manual. There are monthly CD-ROM updates, giving subscribers the same information that insurance companies have on their mainframe, with no time-consuming filing of new pages.
If you like the idea of having IMMS and ISO on the same disk, try AMS's silver Plume CD-ROM. (800-677-4442.) It combines these programs, as well as Rough Note's Coverages Applicable, AMG's Automated Agency Report, Best's Electronic Underwriting Guide and numerous other state and national programs.
10.) Archival system. Before the Xerox copier made photocopies practical in small offices, few photocopies were made. Now, we think nothing of making thousands of copies each month. A similar development ahs occurred with information being entered into computers. Data storage is less expensive now, so we think nothing of loading all we can. Having developed these habits, it's critical to establish a system for removing old information from the computer, thus creating room for new data.
You don't have to wait for an affordable, writable CD to initiate an archival system. Why not use your tape drive, the same one you use for backups? Archive the old files to tape, remove them from your hard disk and save the tape. Just be sure to make more than one copy of the tape - and store one off-site. But remember, tapes don't last forever, so print out files if you need to permanently save them.
So, there you have the top 10 suggestions for the year ahead. Review them, evaluate your current system and decide what you can do to help your agency prosper in 1995. Happy New Year!
