Support Group
When all is said and done, the best product installations usually come down to how much support the insurance carrier receives from its vendors.
Having a history with a particular vendor understandably often creates a certain comfort level for a carrier in considering new projects. When two vendors combine for a new solution and the carrier has an established working relationship with both of them, thats a fairly unbeatable track record to leverage in the decision-making process.
This is the situation First Nonprofit Insurance Co. (FNP) found itself in when INSTEC and Mayfare Software Solutions teamed up to develop the CL1X commercial lines processing system. Says Rich Dacey, vice president and CFO at FNP, We were aware of what INSTEC was doing in regard to not only its package rating system, which it was upgrading, but also the interface it was working on with Mayfare. We also were a client of Mayfare, so it kind of fit wellsince we already were an existing client of bothto pursue the product INSTEC was developing with Mayfare.
That didnt keep FNP from studying other options, but Chris Finkley, underwriting and technology services manager for FNP, says, We looked at a couple of different vendors that had rating engines, but nobody we looked at had integrated rating and forms applications. We wanted something that would prevent us from still having to use multiple systems.
FNP started the selection process in September 2002 with the intent of having the system implemented and installed by May 1, 2003. We missed it by a day, says Dacey. The installation went smoothly, with most of the problem areas specific to FNPs business.
The reason the installation was so successful, Finkley says, was constant contact and support with the vendors. They were very responsive to our needs.
Carriers usually find unexpected issues can arise after a product has been installed. There are things you iron out with any new technologycustomization you had under the old program that needs to be brought forward to the new program, says Dacey. These are things that [can] get lost in the shuffle because you do them once in a blue moon as opposed to something you do regularly. The vendors have been very responsive in addressing those issues.
After installation, the carrier also identified some training issues that needed work, and the vendors cooperated completely. We needed more training because what we were doing [with the new system] in the Windows environment was so different from the DOS environment that our employees were used to, says Finkley.
INSTEC trainers returned to FNPs Chicago office and gave a brief overview of the system to all the users, and then went to each users desktop and helped with individual problems.
FNP operates in eight states, adding three states in the last few years. Expansion and market conditions have allowed FNP to grow at a strong pace. By having a system that basically will do soup-to-nuts, it allows us to get into new states quickly, says Dacey. That wasnt always the case in the past. We can hit the ground running better than we did before, he says. Hopefully, that will increase our production per employee. Thats one of the key things we look at for all our employees.
FNP currently has all its systems in a Windows environment. We now are able to produce a much more consistent product in its look and in its output, says Dacey. Its very neat, very orderly, and very easy to make changes on renewals.
As far as ROI goes, Dacey says the carrier is looking at the new product as a way to reduce its expense ratio. Were looking at it from the standpoint of being able to produce more business with the same number of people, he says. Our expense ratio has typically been in the mid-to-upper 30s. This year it should be in the lower 30s. ROBERT REGIS HYLE
Case File
THE PROBLEM
To issue policies more quickly and
in a more consistent manner.
THE COMPANY
First Nonprofit Insurance Co.
Web Site: www.firstnonprofit.com
Gross Written Premium: $24.5 million
THE SOLUTION
CL1X from INSTEC and
Mayfare Software Solutions
Web Site: www.instec-corp.com
and www.mayfaresoftware.net
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.