There is no doubt the Internet revolution is changing the face of the traditionally paper-bound insurance business. Online document management technologies have given insurers and agents faster, more efficient ways to do business that encompass virtually everything, from the way work is received and distributed, to the way applications, forms, and correspondence are shuttled back and forthwithout having to rely on paper.

As the chief information officer of an insurance company that is taking advantage of online document management technologies, I can tell you there are some growing pains involved. Jefferson Pilot Financial is redesigning its systems to become a digital life company. Over the next several years, Internet technology will help us move away from mainframe-based operations to a more flexible, Web-enabled browser environment.

Like other companies implementing this online technology, we have a goal: To take the friction out of the way we do business by improving communication and becoming faster and more efficient.

Getting the Buy-In

Simply defined, online document management technologies utilize the Internet to digitize workflows that are generated from regular correspondence, phone calls, faxes, photographs, e-mails, forms, or other documents that move between the home office, producers, and clients.

Moving from a paper-driven environment to a digital, online environment involves a massive culture change, because the new technology touches almost every part of your business. There are employees and producers who have spent their entire careers handling paper filesand now, suddenly, a change in business processes changes their jobs and requires them to do virtually everything on the computer monitor.

Inevitably, some employees and producers adapt to the new paperless processes quickly, while others are slower to do so.

This technology is more than an investment in new software, its a redefinition of business processes, removing redundancies and streamlining the flow of information. Its not so much about implementing a new technology as it is implementing a business modelthe investment is in people. By deploying personnel more efficiently, you make them and their services more valuable, and you also allow for better growth. The more information your customer service representatives have access to, the better and faster they are able to resolve questions and issues. The same goes for producers. Anything that gives them faster, more up-to-date information will help them service their clients betterand that can mean more sales for your company.

Streamlining processes means changes in infrastructure as well, which also loom large because moving away from legacy systems is costly. In todays environment of consolidation, its easy to find yourself with several different databases, in several different locations, based on several different platformswith little or no chance of linking them to make them communicate or share information. The efficient, streamlined workflow of a good online document management system is extraordinarily difficultmaybe impossibleif you do not have a system that allows information to flow freely across offices, departments, or other areas of the country.

The Payoff

Were still in the midst of implementing paper reduction processes at Jefferson Pilot Financial, but were already seeing the benefits. In the first nine months of 2002, weve eliminated the need for 9.7 million sheets of paper in printed reports and correspondence. By reducing our need for printed material, we are able to make better use of our printers, reduce the number of printers needed, and eliminate many of the attendant costs.

Web-based services have also been a particular hit with our producers because they are achieving the goals of increased efficiency and reduced costs. In short, we are making it easier for them to do business with us. Not only is the Internet a faster way to communicate, its allowed us to create a virtual office for producers. We have provided instant access to thousands of printable forms, and weve stored them in a manner that allows producers not only to select the appropriate form for a client, but also select a particular package of forms to suit particular client cases.

In addition to forms, online document management has allowed us to provide sales, marketing, and operations management support so that our producers have everything they need to service their clients and grow their businesses right at their fingertips, always available, tailored to fit their needs, and always up-to-date. The cost benefits are also noteworthy: One producer estimates a savings of $2,000 a month in administrative costs and inventory maintenance alone.

Implementing an online document management system does not happen quickly or all at once. Issues remain to be resolved, such as documentation for regulatory purposes and the recognition of digital signatures. Nevertheless, Jefferson Pilot Financials transition to a digital life company has already yielded the benefits of increased efficiency, better customer service, and reduced costs. New products and their accompanying forms get to market quicker, customer service representatives have faster access to more information, and producers have faster access to the tools they need to service their clients better. And its all happening without the need for paper.

Charles C. Cornelio is executive vice president, underwriting/new business, and CIO for Jefferson Pilot Financial in Greensboro, N.C.

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A Digital Life Company Emerges

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