Agents Find Tech Conversions Difficult

ASP-hosted systems allow agencies to "know with great certainty what their costs will be" and to move much of the "automation chore" out of the office and into the hands of the automation vendor, Mr. Parsons observed.

"It works well for us, too," he said, adding that "the number-one issue we have with supporting customers is [file] backup. We spend hourstrying to untangle these things. However, with an ASP, that problem completely goes away," he added.

"Sagitta Online," which came out just a few weeks ago, offers the use of Sagitta software that runs on the high-capacity IBM RS600 servers managed by and located in an AMS data center.

Sagitta Online appeals mainly to high-end agencies with a very large clientele, according to Mr. Parsons, who noted that one AMS client has about 1,400 users on a single system.

Agencies lease Sagitta Online on a monthly, per-user subscription basis, he added.

Sagitta Online is the ASP-hosted version of "Sagitta Browser," a browser-based management system for larger agencies, brokers, managing general agents and banks.

The development of Sagitta Online is a direct result of the success of "AfW Online," AMS's middle-market ASP-hosted product.

With AfW Online, an agency does not have to install any software locally and can access the program remotely via the Internet. Introduced last summer, AfW Online has become AMS's best seller, Mr. Parsons revealed.

Mr. Parsons said that the world of insurance agency automation "is going ASP," noting that few independent agencies today resist the notion of "getting rid of all the headaches involved with maintaining a server and software locally."

Robin Raina, chief operating officer, director and president of Atlanta-based ebix.com, likes to tell his clients: "You concentrate on your business, while we manage all your IT needs."

Ebix's most current tool for carrying out that directive is ebixASP.com. In Mr. Raina's words, ebixASP, introduced about three months ago, is "a completely Web-enabled e-commerce system for agenciesan anytime, anyplace systemto run their entire business."

Built from the ground up, ebixASP is customized to fit the needs of each company, he said.

Mr. Raina explained that, due to WAP (wireless application protocol), ebixASP allows agency principals and customer service representatives alike to get into the office system remotely from anywhere with a cell phone or a personal digital assistant device.

Mr. Raina stressed that ebixASP is not "sold" to a client. Instead, an agency pays only if it uses the system–for as little as $50 per user per month, with no additional support fees, he noted.

He added that, while the largest brokerages such as Aon Corp. and Marsh & McLennan spend 8-to-10 percent of their revenue on information technology, "it doesn't make sense for [small] agencies to spend so much money on IT when they cancontribute it toward their margins."

Mr. Raina said that response to ebixASP has been "absolutely tremendous." He attributed this to improved efficiencies, lower costs, and fewer technological headaches for the clientele.

Ebix.link is another tool available to insurance agencies, according to Mr. Raina. Ebix.link is described by the company as a "workflow engine" that allows real-time, Internet-based e-commerce between insurance carriers and agents and brokers.

Mr. Raina explained that by putting the file-handling process on the Internet, ebix.link allows several people within an agency to work on a file at the same time.

After the agency has completed its work, it can release the file to one or more carriers, which in turn can process the file over the Internet.

This elimination of file "serial handling" cuts down significantly on the time it takes to obtain quotes and even policies from carriers, according to Mr. Raina.

He also pointed out that with ebix.link, an audit trail is created. This consists of a log of anyone who works on a file, what time the file was accessed, and how the file looked before and after it was accessed.

He also pointed to the "complete project management" capability of ebix.link. This means that a supervisor at an agency can readily ascertain who is handling a file, the status of the file, and the reason for any delay in processing it, he explained.

Moreover, when an agency sends a submission over the Internet to multiple carriers, it can do so in whatever format the carrier wants, Mr. Raina said.

In May of this year, ebix bought Ins-Site Solutions Inc. of Atlanta. Mr. Raina said that Ins-Site offers a system used by about 7,000 agencies and nine carriers that is "an Internet inquiry, a claims inquiry and a billing inquiry system."

Additionally, Mr. Raina said that "very soon" ebix will launch an Internet-based tool for agents to train their employees on various software programs.

While having "no doubt" that in the future all agency management will be Internet-based, Mr. Raina added that "the world is going wireless."

In the view of Jeff Lebioda, marketing manager for Applied Systems, Inc. of University Park, Ill., "the Internet should be leveraged in a way that helps agents become more efficient and effective" and that gives them options.

WARP (also known as "Transformation Station") is Applied's latest offering. In a joint marketing arrangement with IVANS, Inc. of Greenwich, Conn., Applied uses IVANS technology as well as its infrastructure and communications network in conjunction with the WARP programming solution, Mr. Lebioda said.

As a result, real-time exchange of information between multiple carriers and agency/brokerage systems is now possible.

This means that agents can request quotes, submit policies, do reissuances and bind coverage "all in a matter of seconds," according to Mr. Lebioda.

One browser-based technology offered by Applied is "In-Scope." Mr. Lebioda explained that the product was created for agencies that want the ability to service their clients beyond standard operating hours.

With In-Scope, a customer of an insurance agency can go to the agency's Web site any time day or night to submit a claim or obtain proof of insurance, he noted.

Applied still offers its original automation software, "Agency Manager for Windows," known as "WinTAM." According to Applied's Web site, version 7.0 was made available to beta testers in June.

Mr. Lebioda revealed that one bonus of the updated version is that it is imbedded with WARP. This allows current WinTAM users to start using WARP as soon as they sign up for it through IVANS, he explained.

Mr. Lebioda said that the agencies using WinTAM run the gamut from the small one- to two-user "mom and pop" agencies to large agencies with 150 or more users and several remote operations.

"PockeTAM" is an extension of the "Agency Manager" system, Mr. Lebioda noted. Using Microsoft Windows CE technology, PockeTAM is a pocket personal computer that allows agents to look up as well as add customer and policy information from remote sites.

When the agent returns to the office and reconnects with the main computer system, the new or updated data is automatically entered into the system, he said.

He indicated that Applied had released PockeTAM to beta testers about two months ago, with favorable feedback. Mr. Lebioda said that the device is small, "relatively inexpensive," and durable.

For agencies with "more sophisticated workflows," Applied offers the next generation of Agency Manager, the "Vision Series." Vision provides complex accounting and high-end database access and reporting. The pocket PC version of Vision is "ProVisions," which operates in the same manner as PockeTAM.

Additionally, Applied offers an ASP product called "TAMCentral," which, as Mr. Lebioda explained, is essentially Agency Manager, except that all of the IT management can be handled at a data center.

Mr. Lebioda revealed that the data center has several energy backup systems so that the chances of losing data in a power outage are greatly reduced.

As to the future of agency management, Mr. Lebioda said that in Applied's view, technology is veering toward using the Internet to be more effective and more efficient "from a service and a sales perspective."

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, August 6, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.

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