The Internet is sometimes seen as the enemy by independent agents who look at selling policies via the Web as a direct threat to their well being. Used in other ways, though, the Internet is likely the insurance agents greatest tool for selling P&C policies since the FC&S Bulletins were first published in 1929.
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But there is no doubt that the ability to relay timely and accurate quotes to customers over the Internet has made selling policies that much easier for agents. And Providence Washington Insurance feels strongly about both its independent agency force and the Internet. It has pledged to its agents that they will be the companys only sales channel. The agents responded that the Internet was an important tool for them and Providence Washington needed to upgrade its Web site.
Our agents told us that getting quotes or proposals for their customers was a problem, said Ed Leveille, vice president of systems and CIO of Providence Washington. The agents cited three areas of concern: They said they didnt have one source to go to for all their needs. Up to a certain dollar level they went to one underwriter and above that they had to go in another direction. They wanted something simple. The ability to go to one place, Leveille said. They also told us that they wanted us to be able to say no as quickly as possible if we didnt want the risk. The third thing they asked for was the ability to receive quotes immediately, not in two or three weeks.
Providence Washington worked with three vendors in its search for help. An internal committee, made up mainly of IS staffers and some users, was formed to evaluate the products. The selection process took nine months as the committee looked to fill its present needs with an eye for future use in claims and other areas. It signed a contract with ILOG in late 2000.
We chose it for its technology, Leveille said, Primarily XML. JRules 3.5 is XML-centric software, directly processing XML data instead of calling another process to do the translation. This allows business rules to be used on the Web with XML data whenever they are needed.
With automated underwriting guidelines, agents are led through the process with a series of questions. The responses lead to other sets of questions. The end result is that quotes are available to agents usually within 10 minutes for average risks, which Leveille said covers between 60 and 70 percent of the quotes it issues. The more difficult quotes take a little longer: 30 minutes.
Providence Washington is currently using ILOG for about half its commercial productsBOP, commercial auto, umbrella, and liquor liability. It intends to have its commercial lines completed by the end of this year and then will add personal lines.
Implementation began last June with the first product online within three months. Leveille said there was a learning curve for his staff at first, but the ILOG staff was extremely helpful. User training is virtually nonexistent, he said. The agents dont interact with the rules engine, he said. We train them for data entry in about an hour.
The only installation problems involved communication glitches between different software products, but Leveille said that was not an ILOG problem. Since the prototype went live, weve had no real problems, he said.
And neither has the independent agent force. Their goals have been met, according to Leveille. From every response we have received they have been 100 percent pleased, he said. They see our Web site as one of the best in the marketplace. ROBERT REGIS HYLE
THE PROBLEM: CREATE A FAST, INTERENT-BASED QUOTING SERVICE FOR AGENTS
THE COMPANY: PROVIDENCE WASHINGTON INSURANCE
LINES: COMMERCIAL AND PERSONAL P&C
DIRECT WRITTEN PREMIUM: $230 MILLION
WEB SITE: www.provwash.com
THE SOFTWARE: JRULES 3.5, FROM ILOG
WEB SITE: www.ilog.com
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