Small Agencies Can Use Tech, Too

Pick one process and get started. Here are a few easy areas for technology implementation:

Provide high-speed Internet access to all employees.

Most insurance companies are embracing the Web. Before DSL, we utilized a dial-up Internet service provider (ISP) with several dedicated telephone lines. The difference in speed between the dial-up and DSL connection is phenomenal. Our CSRs are able to quickly communicate with underwriters and customers to gather needed information and transmit applications. We print screen images, as appropriate, for confirmation of data entry and transaction updates, and retain electronic information in our agency management system.

High-speed Internet access allows us to use Web-based e-mail for 24/7 and worldwide accessibility to our customers. Our e-mail address and Web site are advertised to customers and insurance companies.

We have developed a customized Web page for office staff with links to frequently used sites (company Web sites, state and national associations, Trusted Choice, insurance department, rating bureau, Map Quest, telephone numbers, etc). We estimate the faster logon and load time saves one hour per day per employee, and it reduces telephone expense.

As we migrate toward Internet-based transactions, the security of our information is essential. We diligently perform backups of our data files and have installed a firewall on each desktop. All e-mail is scanned for viruses and no outside programs are installed on any agency computer without prior management approval. Employees are promptly notified of virus threats (via the McAfee virus alert service), and training material is provided to heighten awareness of possible threats.

With the ability to scan documents and forms, we have added non-ACORD forms to our agency management system. Our documents are professional looking, leave a good audit trail, and reduce data-entry.

We store digital photos in our database, so when the need arises, we can instantly e-mail the information to underwriters. ACORD forms are available through our agency management system, and we strive to use these standardized forms with as many companies as possible. Scanning reduces the number of copies that must be made, filed, mailed, etc., saving an estimated one-minute per policy. Digital cameras allow us to save on film, and on storage of documents / filing.

Create customized letters, applications and documents with "merge" capabilities, and use customized spreadsheets and checklists for non-automated rating.

Within our agency management system, we customize correspondence by using "merged" customer and policy information. Our management system allows us to create documents and designate the information we wish to merge from other segments in the database.

Unfortunately, not all insurance companies use the Internet and not all of them are using automated rating processes. For those carriers who still require manual rating, we have created specialized automated spreadsheets attached to the customers file within our agency management system. To customize the spreadsheet for any particular customer, we simply enter the appropriate coverage amounts. (This sure beats the old calculator approach.)

Take advantage of policy uploads to and downloads from companies.

Several companies allow direct data entry to their online proprietary systems for quoting, company-specific applications, and proposals. Until we reach the vision of real-time, single-entry interface capability between agency and company systems, companies could help agents by printing applications from their systems using the ACORD format. ACORD uses a uniform approach for capturing pertinent information, reducing the need for duplicate data entry into the agency management system, and minimizing E&O exposure through standardization.

For quite some time, weve been downloading information from many of our partner companies sites. Each morning we access IVANS and download policy updates from the companies that have forwarded transactions. We match the transactions with customer policies in our agency management system, and the policy applications are updated on our system.

This process eliminates the need for manually updating policy applications, and downloads assist us with more timely cancellation and reinstatement processing.

While no download process is perfect, it is far superior to manual updates. The estimate for downloaded policy time savings as compared with manual application updates is one minute per policy, which really starts to add up.

Budget for technology improvements.

Remember, you dont have to upgrade everything at once. If you methodically upgrade 25 percent of your equipment each year, your office will be current in four years, and you will have been able to manage the costs.

The future for technology in small agencies holds great promise through the use of PDAs, laptops and wireless communication. You can get started todaytake the plunge!

Angelyn Treutel (angelyn@treutel.com) is a member of the Agents Council for Technology (ACT). Based in Bay St. Louis, Mississippi, Treutel Insurance Agency is a Trusted Choice agent; a member of the Independent Insurance Agents & Brokers of America; is a Best Practices Agency; and is now in the third generation of the Treutel family.

The Agents Council for Technology is a group of agents, companies, vendors, user groups and associations assembled in the Alexandria, Va.-based Independent Insurance Agents and Brokers of America to promote and facilitate the use of effective technology solutions and business processes within the independent agency system. Opinions expressed in these columns are those of the author and should not be construed as an official position of ACT. For further information on ACT, contact j.yates@iiaba.net.

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.