New ASCnet President Urges Speed On Adoption Of Real-Time Transactions

In past years, the group had been pushing a campaign for SEMCI (single-entry, multiple-company interface), a technology environment that would allow agents to enter quote data into their systems once and be able to send that data to multiple insurers, despite the insurers disparate rating needs and their proprietary information systems. Mr. Durland, however, sees the concept of real-time interface as accomplishing the same endless redundant information entry for agents.

"Ive almost stopped using SEMCI," he noted. "I use real-time interfaceas long as it serves the same purpose." The key, however, is that insurance companies must pay to utilize Transformation Station, thus enabling agents to transact business with immediate feedback from carriers. Agents incur no extra cost in using the technology, he added.

"The companies that arent doing this will start running scared," Mr. Durland asserted. The pressure from the agent community, he said, "will almost force [companies] to say, I need to do this."

"The importance of real-time interface to the efficiency of the overall independent agency system cannot be expressed more adamantly," said Mr. Durland in a separate statement. At present, he noted during the interview, some 2400 agents are using Transformation Station. By the end of his one-year term, Mr. Durland said he hopes to be able to say that more than double the present numbers of agencies and carriers will be using Transformation Station.

Asked why insurers would hesitate to adopt a technology that is so strongly endorsed by ASCnet agents, Mr. Durland observed that the price of the technology is probably not an issue for carriers. "There are many insurance companies, and theyre not all going to [adopt the technology] at the same time. Theres political, internal stuff going on within the companies, and they still have to follow their own budgeting patterns."

Mr. Durland said early adopters of Transformation Station tended to be national insurers who could afford to take a bit of a financial risk. "They had immediate dollars to invest in a product that was unknown," he explained.

One of the key challenges for ASCnet in the coming year will be to "push" insurers to adopt the rating capability available through Transformation Station, said Mr. Durland. This would save agents time on rating, especially where multiple companies are involved. "You can quote more companies, rather than be forced to pick and choose," he added.

In order to get that rating capability, he continued, participating insurers Web editsthe unique questions that each insurer asks for its own rating proceduremust reside on Applied Systems servers. This would allow agents to access those Web edits "all in one spot," instead of having to visit multiple carrier Web sites to get the information, he explained.

Another inhibiting force in the drive to get real-time rating is the reluctance of some insurers to have their rates compared on a "grid" with their competitors, said Mr. Durland. "There are still some companies who are worried about the comparative rating scenario," he noted. "Its a minor hurdle."

Mr. Durland is a third-generation co-owner of his company, which was founded 70 years ago, said ASCnet. His firm was among the first to utilize Transformation Station for quotes, claims and billing inquiry with Travelers Insurance. Durland is now doing real-time processing with Hartford, Progressive, Encompass and New York Central Mutual.

An advocate for agency technology, Mr. Durland has been involved with AUGIE (ACORD User Groups Information Exchange) and ACT (Agents Council for Technology).

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