Ten years ago, insurance agent Sal Cocco used technology in his practice -- barely. Now 51, Cocco says he took advantage of just enough tools to get by; his office administrator handled most things on the electronic end. And when he met with clients, he took notes on a yellow legal pad, coming up with financial plans without the use of much technology.
Then, about a year ago, his son Mike joined the business. Since then, their agency has risen to the next level, Sal says. How? Simple: more technology
"From a competitive standpoint, when a lot of the younger generation starts to become clients, the old yellow pad is not good enough for them," says Mike. "They want to see more calculations, analysis, 'How did you arrive at this?' 'How do you know it's the best thing for me?' "
Whether you use it or you don't, technology matters in the workplace and in the field. It can make or break a sale. It can divide the industry into the haves and the have-nots. It can make one agency better than another, one carrier more popular, and one producer more productive -- and profitable -- than the rest.
Most agents are on the technology bandwagon in some respect, but many haven't stepped beyond the basics. In a recent survey published by Agent Media*, 96 percent of agents rely on email as part of their profession. Ninety-two percent use cell phones, and 56 percent use laptops with wireless capabilities. But only 63 percent take advantage of a company Web site, and 23 percent use a handheld computing device, two tools that experts say have and will continue to shape the way the industry's key players do their business. (See chart.)
Like it or not, technology does play a major role in an agent's life. So what's changed, what's new, and what's on the horizon? We spoke with several industry experts, as well as agents such as Sal and Mike Cocco, to find out how technology can be woven into your daily practice to create a more streamlined and efficient business. Then, turn to our technology resource directory, which begins on page 16, to learn what vendors can help you better your business and how you can navigate this technological world.
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The mobile office
Cell phones and laptops. Nearly every business professional uses one, if not both, devices in their day-to-day business. But there are other tools -- namely, handheld devices -- that can help insurance producers become even more flexible. Tony Rake, an agent from St. Joseph, MO, says he relies heavily on his handheld device, doing everything from downloading maps of his clients and prospects' addresses to synchronizing the device with his laptop, allowing him to type notes while with a client and have them sent to his handheld for future reference.
"I use the heck out of [my handheld device]," Rake says. "I just love it. It's the best thing I've owned. I used to carry around a calendar book, and by the end of three months, pages are being ripped out, and if I didn't have my book with me I couldn't write down notes or appointments. Now, I whip out [my handheld device] and put all my information right on there."
Rake says mobile technology such as this has helped him work leads more effectively. Whereas before it took him about three sales calls to close a deal, he can now close in one or two calls. Rather than shuttling back and forth between his office and his prospect's home, he can retrieve and deliver information during the sales call, allowing him more flexibility and boosting his productivity.
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According to Bob Lotter, chairman and CEO of the technology vendor eAgency Inc., mobile technology solves many point-of-sale problems such as not having forms or client information on hand when it's needed. With a laptop or a handheld device, you can store and access information whenever you need to.
"When you carry a pocket PC or a cell phone or a BlackBerry, you can multitask," he said. "You can be with a client, and if they need to go get some paperwork and they're gone for five minutes, you can be answering customer support questions without a phone call."
If you're thinking of adding more mobility to your practice but haven't gotten there yet, Lotter suggests taking small steps that can make a big difference. For example, you may have a cell phone with basic capabilities, but if you spent just $20 or $30 more on a slightly more powerful device, "you can have contacts, your desktop, and email synchronized over the airwaves rather than making notes or checking your email at the office. Gasoline is a lot more expensive than adding email to your device."
The future
As technology evolves, opportunities present themselves for agents to get ahead of the curve -- and their competition -- with new client management tools, agency support software, point-of-sale illustrations and quotes, and other tools rapidly entering the marketplace.
NAILBA technology advocate Jeff Kraber said he believes that as technology evolves and more agents take advantage of it, it can reduce the potential number of errors due to incomplete or incorrectly completed applications, as well as increase "both speed to market and accuracy to the process."
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"We think you'll see more technology that produces a smarter application process to enhance and improve the consumer experience with buying life insurance," he says.
Currently, he says, NAILBA is looking at a process that allows agents to electronically enter application information, making for a paperless office environment that many companies are already seeing. Kayla Slack, for example, executive administrator of Insurors Group, says electronic tools have allowed for a smaller staff, less consumption of office space, and heightened efficiency in her organization.
"Ten years ago, when everything was paper, we had double the number of people and double the amount of workspace because we had to keep files of everything," she says. "Now, everything is strictly online. The agency is paperless as much as you can be."
Some industry experts also believe that the industry's reliance on Web sites and email will become more prevalent. "The move is going to be insurance companies are more and more going to want to use your email address to send commission reports rather than sending them through the mail and give support over email rather than a phone call," says Lotter.
Indeed, agents frequently use technology to research and interact with carriers and brokerage agencies. According to an Agent's Sales Journal readership study conducted in 2005 by the Wayman Group Inc., 66 percent of agents had visited a company's Web site to learn more information, and 24 percent had emailed a company for the same reason. Eighty-one percent said their most likely response to a company's ad was to visit their Web site, and 43 percent said email was their preferred way to receive more offers while 32 percent preferred the Internet.
Carolyn "Cal" Durland, the facilitator and manager of the ACORD-User Groups Information Exchange (AUGIE), takes the Internet thread one step further, stating that Web sites will soon facilitate interaction and efficiency between the customer and the agent.
"In the future, agent Web sites will become the focal point, allowing customers to connect with their carriers and have 24/7 access to their insurance information, including coverages and insurance-related chat groups," Durland says. "This is not currently on the top of the agent's 'to do' list, but as the next generation comes of age, it is the way business will be done."
Riding the wave
"At first I was hesitant. I was afraid to hit one button that would wipe out all the information in the world," says Sal Cocco. But it's no mistake that his and his son's agency has grown with the advent of their growing reliance on technology. Now, rather than taking tedious notes and manually converting those notes into a client's financial plan, Sal and his son utilize a combination of fact-finding and technological input. The old yellow pad still has its place, but it's bolstered by various illustration and accounting tools that allow them to operate more efficiently and set themselves apart from competitors.
"I think that if you don't have the technology, the amount of paperwork involved is tremendous," Sal says. "One, [technology is] a necessity, and when [clients] sit with other financial planners, we look competitive as far as having the newest form of technology out there. You really couldn't get manually what technology does."
Slack agrees that technology can provide a great competitive edge to industry players.
"The more automated an agency is going to be, the more successful they will be," she says. "This is a competitive marketplace, just like most industries, and if you're not on the cutting edge of technology, you're out of business. You just can't operate efficiently or properly if you aren't doing things electronically."
But be careful, as Sal offers one final word to his industry counterparts: Technology can't replace good old sales sense.
"Use technology and use it as another tool. Our best tool as we like to say is our hearing tool, but if you can use technology to fit your business, it brings the whole cycle back around."
For more information, email Christina@AgentMediaCorp.com or call 800-933-9449 x226. *Agent Media publishes the Agent's Sales Journal and Insurance Marketing magazine. These statistics came from the 2006 Brokerage Study, developed in partnership with the National Association of Life Brokerage Agencies (NAILBA).
