Outshine The Competition With Tech

Once the playing field has been leveled in that regard, it tilts toward local independent agencies as the only ones that provide in-person, friendly service, plus access to multiple carriers.

There are several key areas where new technology is having a big, positive impact.

In the last few years, many insurers have invested substantially in technology that relays claim information electronically to help ensure that claims are paid quickly and accurately, with no hassles for customers. Some have set up "24/7″ toll-free numbers so that customers and agents can call in an auto or homeowners claim whether its noon or midnight.

Though the company must pay the claim, customers often lean heavily on their agents for advice and consolation in this time of stress. They often look to their trusted agent to reassure them that everything will be all right and that the agent will go to bat for them if necessary.

Technology enables insurers to provide the needed information that enables agents to help their customers more efficiently. If the agent needs to call the company to find out whats going on, the inside claims staff will have all the information at their fingertips. They can look up the latest files, photographs, notes and appraisals in the computer system because the outside adjusters have electronically sent all this information for immediate access instead of "snail-mailing" paper files.

Calling the company can eat up valuable staff time at the agency. Agencies save time, and ultimately money, when they can look up claims information on the company Web site. With Web access, the agent or customer service representative can immediately tell the customer exactly where his or her claim stands without making a phone call. If more information is needed, the agent can always call the claims representative for an immediate answer.

Technology lets agents cut the costs of providing superb policyholder service, the most labor-intensive and expensive part of running an agency. The agents key job is to manage customer relationships, handling sales and customer inquiries, from routine changes to counseling a customer about what limits and deductibles make the most sense. Independent agencies arent merely insurance "distributors," theyre complete sales and customer-service organizations.

Not that long ago, agency staff were hampered by lack of current customer information. Too often, they had to call the company, wait for a callback, and then call the customer several hours later or even the next day. But today, people want to get answers instantly, and agents who work with progressive companies can provide them.

Agencies should have all relevant policy information in their agency management system. To make this happen, companies must provide downloads of updated policy information whenever theres a policy change or renewal. With the ability to download customer information directly from the carrier, producers do not have to enter the same information twice. This significantly reduces paper files, and the agent is assured that his or her clients files are always up to date and available. This is an enormous service advantage and a major saver of time and money.

Even with download capability, some information, such as billing, typically will be available only on the company system. With access to the companys secure Web site, agents and CSRs dont need to make phone calls. They can get the information they need online while the customer is still on the phone or in the office.

Agents can now offer customers more ways to pay their premiums conveniently, such as automatic withdrawal from the customers checking account. But sometimes customers need to immediately make a payment to buy a new policy or take care of a cancellation notice. Through the Web, agents now can immediately post payments, both checks and cash, to the company. If its a check, the customer does not even need to come into the agency. He or she can just call in the bank account information and amount. Since the money is automatically deducted from the customers account the same day, no one at the agency has to call up the insurer and fax a copy of the check that is being mailed. Web payment saves agents a lot of time and really impresses customers.

When agents are empowered to satisfy all their clients needs at the point of sale, the agency becomes the insurance company in the customers eyes. And thats the way it should be. Its the independent agent who has the relationship with the customer, not the insurer.

Technology is cutting agents costs by eliminating redundant processing and letting agencies provide even better service while using less staff time. Superb tools are already available, and they will continue to be improved in the future.

Hal Belodoff is president and chief executive officer of Plymouth Rock Assurance Corporation, a Boston-based personal lines insurer represented by independent agents in Massachusetts and Connecticut. He can be reached at hbelodoff@prac.com.

Reproduced from National Underwriter Edition, April 14, 2003. Copyright 2003 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.