Agents and underwriters have always worked together on risks, trying to find common understanding and common ground.
Once upon a time, business in the insurance industry was done on a handshake, or at least in person. Sitting directly across a desk or table from one another, insureds or their agents worked with underwriters to work out details of coverage and to ultimately bind the risk.
The insurance marketplace of today offers players neither the proximity nor the time to sit down together and actually write business collaboratively.
Instead, agents and underwriters separated by thousands of miles, time zones, and sometimes by borders and language, are still trying "to work together."
The industry's technology investments have made limited progress in this area, mostly offering one-way data transfers, uploaded or entered agency data, online and e-mailed quotes, and carrier downloads.
Unfortunately, this does not represent true collaboration. In the insurance world, true collaboration can only happen when agents and underwriters are working together on the same account, with equal and instant access to data, updates and status.
That's what is missing in the agent/underwriter world–true collaboration via a shared platform with real-time collaboration tools. After all, it's hard to collaborate when only one of you is on the system!
So, you may naturally ask, "What can be done to change this situation?"
In the technology world, the term "Web 2.0″ refers to new, interactive Web capabilities, and offers a new approach to working online.
Utilizing Web 2.0, applications can run entirely on the network through a browser, from any location with Internet access, while service-oriented platforms incorporate external services such as data, rating modules, rules and workflow, document systems, and more.
Web 2.0 user interfaces are more rich and user-friendly, incorporating graphical, intuitive controls that do not require much training or manuals, and that provide instant feedback that lets you know if you are on the right track.
For insurance organizations, other Web 2.0 capabilities such as participatory and user-driven applications are extremely important. This means that rather than following a tightly scripted sequence of screens and pre-ordained content, Web 2.0 encourages genuine interactivity, nonlinear workflow, dynamic content, and most importantly, the ability to add your own content.
Plus, Web 2.0 systems enable social-networking, collaboration and collective intelligence.
Web 2.0 concepts are most compelling when we start to leverage them to develop collaborative business systems.
What if we could use them to develop a new Underwriting 2.0 process that takes advantage of these new technologies and capabilities?
With Underwriting 2.0, suddenly everyone would be able to participate, from anywhere. Everyone–from producer, customer service representative, underwriter, assistant, referral underwriter and management–can be in the same "virtual room," working together in a shared, collaborative process.
Everything would happen in real-time. Entry, updates, reports, discussions, rating, quoting, binding and even referrals could all happen without the wait.
And those involved in the process would find that underwriting can be an easy, intuitive and even fun user experience.
This is all possible when the user can follow a natural process, going where they want, when they want, and getting instant feedback along the way.
With those ideals of Underwriting 2.0 in mind, what specific features would it be most beneficial for such a system to have?
o Easy, intuitive, user-driven screens built with business-friendly technologies like Adobe Flex and Flash?
o Information-sharing capabilities that would enable anyone to upload and download content and distribute as necessary?
o How about instant communication tools like live chat, notes and smart e-mails with live links to the data you need?
While all of those features may be important, some of the more technical capabilities are what make Web 2.0, and therefore Underwriting 2.0, truly unique for the insurance industry, including:
o Agency upload and download, leveraging ACORD XML standards, push and pull data from the agent's desktop into the underwriting system and back, and eliminate re-keying.
o Knock-out and risk appetite rules, supplemental data and completeness edits, all upfront and right on the agent's workspace to eliminate wasted time, unwanted or incomplete submissions.
o Shared access to data. As permitted by their role, users can access the application, proposals, shared notes and attachments. Carrier-specific items such as rating worksheets, reports, referrals and other data are safely restricted to carrier staff.
o Real-time alerts and e-mails sent directly to you whenever something interesting occurs (received, assigned, clear, quoted, changed, bound) so we no longer need countless follow-up phone calls.
o Leverage collective intelligence to help every underwriter share and benefit from the knowledge and experience that the best underwriters have. The system should be capable of collecting and presenting best practices and knowledge during the underwriting process.
Underwriting 2.0 offers true collaboration and can provide great benefits for both carriers and agents.
It can make the carrier so much easier to do business with, and reduce turnaround times in such a way that it makes agents significantly more productive, loyal and engaged.
It also allows underwriting organizations and their agents to spend less time on data entry and manual processes, and instead focus on writing the right business for the right price.
On a per-underwriter basis, Underwriting 2.0 can easily increase submissions, quote counts and premiums written by 25-to-50 percent.
The insurance marketplace has never been more competitive and demanding. Many carriers aspire to being the agent's top choice, the one that gets the best submissions and the carrier with the fastest quotes.
Through Underwriting 2.0 technology, and by adopting true collaboration, agents and carriers can reach their goals.
Forward-looking carriers with a passion for innovation, and those who are willing to push their boundaries and to embrace collaboration, will get there first and thrive while leaving others well behind.
Ed Gray is director of Customer Solutions at FirstBest Systems in Bedford, Mass. He can be reached via e-mail at egray@firstbest.com.
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