Specialty Brokers Move To Online Tools

If a retail independent agent is looking to do business over the Web, there are wholesalers and marketers who have decided to take their wealth of knowledge and experience and create Internet outlets, offering the promise of convenience and speed of service for both agents and their clients.

Three years ago, Superior Access of Irvine, Calif., took its experience as a traditional wholesaler and began applying it to the Web, said Mike Mayo, the companys executive vice president.

While others give quotes, Superior Access gives a fully-underwritten quote in as little as five minutes, Mr. Mayo said.

The agency boasts insurance programs ranging from workers compensation to surety bonds to specialty offerings such as commercial umbrellas, lawyers professional liability, mobile homes, artisan contractors, and boat insurance, according to company press releases.

Superior Access is a licensed wholesaler in 47 states, with a license pending in South Dakota. It is not licensed in Hawaii and Alaska.

Superior Access application process, said Mr. Mayo, has achieved SEMCI (Single Entry Multiple-Company Interface), allowing multiple company applications from a single form on 37 lines of insurance. He said the agency has 8,000 producing agencies quoting $1.2 million in premium business a day.

Last year Superior wrote $55 million in new insurance premiums, he said.

An insurance portal provider with long experience in the insurance industry is ProgramBusiness.com. As National Marketing in Laguna Hills, Calif., (where ProgramBusiness.com is also based), the insurance research firm took its 13 years of experience and data and created a database for agents to locate wholesalers and managing general agents who offer specific lines of coverage.

"We are a facilitator," explained Jeff Neilson President of ProgramBusiness.com.

Begun in September last year, the Web site offers listings of between 4,000 to 5,000 agents by class of business. Agents looking for wholesale agencies dealing in the dry cleaning business, for instance, need only to go to the Web site, input that class, and up pops a list of agencies, Mr. Neilson said.

The listings are available for free to retail agents–and growing, based on the Web portals increased database, Mr. Neilson explained.

ProgramBusiness.com makes money by selling "storefronts" to wholesale agencies, Mr. Neilson said, explaining the storefronts are advertisements that put the storefront owner at the top of the list of providers for the line the agent seeks. The "storefronts" also provide other services such as routine contact to agents by fax or e-mail concerning company news.

The users of an advertisers site can also rate their overall experience with the storefront owner. Accumulated ratings appear on the site for others to view.

Two year old, Evolution Insurance Brokers (EIB) in Salt Lake City, Utah, operates as a network of brokers, largely surplus lines brokers, with specialists throughout the country, according to EIBs president, Rick Lindsey.

"The network is in the early stages, but it provides a unique opportunity for local brokers to enter into a national network," said Mr. Lindsey.

EIB acts as the last resort for brokers, agents, or the public to turn to when they have exhausted their standard line sources, explained Russ Sorensen, national sales manager. The Web site lists services available through EIBs broker network and makes available the applications agents need to fill out when applying for coverage. The applications, he explained, can be faxed or e-mailed to EIB for underwriting.

What makes EIB different, explained Mr. Lindsey, is its focus on local brokers in the specialty market–and that it is available to any agent or customer looking for coverage.

There is also a promise of high commission rates, sometimes up to 10 percent, depending on the line. EIB can promise higher commissions because of efficiency in processing, claims service, and higher commission rates paid by surplus lines carriers, Mr. Lindsey said.

EIB is also different in its focus on risk management. In partnership with Claims Direct Access of Salt Lake City, the firm provides review and inspection of the exposure to evaluate risks before they are underwritten, he said. It is a service provided as part of doing business with EIB, Mr. Lindsey observed.

For those who are comfortable with their portfolios of companies, but are looking to streamline the application process, CoverageConnect.com offers a solution.

The New York City-based software provider opened its doors in 1999 with a system that incorporates the insurance company's application questions into a computerized interview process. The result is a complete application from the initial interview, thereby cutting down on the time, stress and expense of processing a new policy, explained Patrick Sullivan, president.

The first question is what is the business type and zip code, said Mr. Sullivan. From there, the software guides the agent through the interview, indicating what carriers in the agencys portfolio offer coverage, and presenting questions the agent needs to ask for that companys application. At the end of the interview process, the agent has a complete application to send off to the company, Mr. Sullivan said.

Applications can be sent to the company by whatever system they desire. They can be printed for faxing or e-mailed directly, depending upon the system the company supports, Mr. Sullivan noted.

CoverageConnect.com is working on software to integrate a firms Agency Management System directly into the application, said Mr. Sullivan, to streamline the process even further.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, September 10, 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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