Cyber-Slacking Kills Productivity

Cyber-Slacking Kills Productivity

The Internet is transforming the way insurance companies do business. Pushing papers is being replaced by mouse-clicks and keystrokes. Producers now use the Internet to research and process quotes, communicate with underwriters by e-mail, issue payments and bind coverage.

As many agencies have discovered, however, Internet efficiency does not come without a price. Just as employees once ran up phone bills making personal calls, agencies are now dealing with the growing problem of Internet misuse.

The insurance industry is not alone. Studies elsewhere have reported that many companies have detected employee abuse of Internet access privileges (for example, downloading pornography or pirated software, or inappropriate use of e-mail systems).

For financial institutions, productivity losses are only the tip of the iceberg. Internet abuse also includes the transmission of sensitive customer data such as Social Security numbers. This directly violates a provision of Gramm-Leach-Bliley, which dictates that insurance companies must disclose how they use their customers personal information. It is the agencies responsibility to ensure that proprietary information is protected or they could face serious legal ramifications.

These issues drove Glasgow Hicks Company, an independent commercial and personal lines insurance agency in Wilmington, N.C., to monitor Internet use.

“You walk by employees desks and see them furiously typing away, apparently hard at work,” observed Charlotte Hicks, president and chief executive officer of Glasgow Hicks. “In reality they may be trading stocks or e-mailing jokes to friends.”

Ms. Hicks asked Todd Brown of “Cornerstone Solutions,” also in Wilmington, a technology-consulting firm, to install software to monitor her employees online habits.

Mr. Browns initial software choice, however, was difficult to manage because it worked on the premise of creating “allow” and “block” lists that dictated where employees could go online.

“It was a nightmare,” Mr. Brown reflected. “Every time an agent tried to visit a new Web page, I had to manually make a change. It was incredibly frustrating for the agents and very time consuming for me.”

They knew there had to be a better way.

They next tried Pearl Softwares “Pearl Echo” Internet Management Software. The software is designed to provide employees with unfettered access to the Internet. A report can later be run showing the sites they have visited.

In addition to monitoring Web browsing, Pearl Echo monitors most common forms of Internet communications including the content of e-mail, chat rooms, file transfers, news group postings and instant messaging. The software can also be set to monitor and filter for keywords and phrases that would indicate the transmission of personal data. This feature is designed to protect privacy and the dissemination of confidential information.

“Our software investment paid off right away,” Ms. Hicks said. “While checking e-mail use, I noticed one employee was sending up to 80 personal e-mails per day. After showing her the report, I didnt have to say another word. The problem was immediately resolved.”

The agencys employees were also relieved. Instead of being blocked from many sites that were not on the “allow” list, they could now freely look for quotes or research new policies.

Like most Internet monitoring or filtering applications, Pearl Echo includes browser-based reports that make it easy to view corporate network activity, which allows Ms. Hicks to run her own reports to look at all Internet activity in the agency.

“Since the new software has been installed, I have saved at least 5 hours per week,” Ms. Hicks said in comparison to the filtering software. “Now I glance at reports once a week, from my own desktop, to make sure that everyone is sticking to our Internet use policy.”

Glasgow Hicks has an Acceptable Use Policy (AUP) in place to communicate what is acceptable for employees to do online. According to Ms. Hicks, simply having the policy and software in place acts as a deterrent to misuse.

“No one can say they didnt know the rules,” observed Ms. Hicks. “An AUP is a must so that people know exactly what they can and cannot do online.”

Although the agency has a zero tolerance policy for personal Internet use at work, other companies may choose to allow some personal access.

For example, agencies can use a software application, like Pearl Echo, to allow personal use during certain times of the day, such as lunch. Allowing employees to shop online at lunchtime sometimes can prevent extended lunch hours. It can also boost morale by allowing employees to send e-mail correspondence to family or accomplish online errands.

Monitoring can be done for employees who telecommute and use the corporate network from home. Pearl Echos “Global Internet Management” feature allows workstations to be completely detached from a private network.

“If Glasgow Hicks allows employees to work from home via laptop, Pearl Echos GIM feature will manage access regardless of how or where people connect to the Internet,” explained Mr. Brown.

Internet monitoring software allows agencies like Glasgow Hicks to take the initiative in conserving network resources and in safeguarding sensitive customer information.

“Unfortunately, most insurance agencies dont realize they need monitoring software until they have been burned,” lamented Ms. Hicks. “The Internet is a great tool, yet it is also one of the biggest temptations for goofing off. Our strategy is to prevent abuse before it ever happens.”

David Fertell is president and CEO of Pearl Software (www.pearlsw.com), a Philadelphia-based maker of Internet monitoring software.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, September 23, 2002. Copyright 2002 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.