If time is money, technology is like a high-yield investment that keeps paying out time-saving dividends to savvy insurance agents. New and enhanced online tools are now available to help agents become more productive and effective in sales, agency management, marketing and client services.
Jeff Yates, the Executive Director of the Agents Council for Technology (part of the Independent Insurance Agents & Brokers of America), wrote earlier this year: "As I have gone around the country talking with agents, what has impressed me is the number of agencies who are continuing to grow even in this tough market ... A common thread I have seen among these agencies is a determined focus to take advantage of the new technologies available to enhance their productivity ... [They] understand that technology has finally improved to the point that it can deliver significant benefits far outweighing the costs, provided they fully use the technology's capabilities."
How are agents using technology to enhance their efficiency and productivity? What are some of the new services and tools? The following is intended to help educate and guide you in bringing the advantages of insurance technology into your working life.
Doing business in real time
One of the biggest drivers behind agents' adoption of new technology is the need to keep up with the pace of business, especially in regards to client services. Today's customers want everything -- answers, underwriting decisions, payments, etc. -- right now, if not sooner.
Increasing numbers of agents and brokers are leveraging real-time technology tools to handle policy rating and sales, manage customer inquiries and deliver services. According to a poll taken by a broad coalition representing the Independent Agency System, more than half of the 3,200 agency staff members surveyed use a real-time tool to start an inquiry or service transaction.
The main reason agents are embracing these tools can be summed up in one word: Productivity. The aforementioned survey found that agents using real-time technology were on average saving 10 hours a month per employee. Agencies also ranked real-time billing, claims and policy inquiry as the technology solutions that were having the greatest impact on their productivity.
To meet customers' and agents' need for speed, carriers today offer online tools that enable them to create customized quotes in real time, complete electronic applications at the end of sales presentations and receive approvals within hours. For example, Assurant Health's Web site contains a search engine that enables you to type in a customer's ZIP code and instantly receive information on the three most popular products available in the customer's specific area. You can immediately see what the deductible is, what the co-pay is, and what other coverage options are offered. When issues arise, you are quickly notified online so you can provide additional information and/or present different solutions or counteroffers.
Productivity-minded agencies are automating processing wherever possible, so that employees can be more efficient with their servicing and sales activities. Some are providing these employees with additional monitors for such tasks as generating automated letters to clients, and agencies report that the monitors pay for themselves in added productivity, in less than a year.
New solutions for improving service, managing client relationships
Technology is also helping agents efficiently manage their client relationships and quickly provide their customers with accurate, comprehensive information. With Web-based tools, such as those integrated in the agent portal used at Assurant Health, agents can offload administrative responsibilities by giving designated support staff online access to underwriting and/or policy status. A new tool called "MyBook" has an "Alert" section that notifies agents as to which policies may need their intervention in order to retain the client. For example, it gives agents the status on each client for renewals, terminations, late payments and potential re-sell opportunities.
The status field can be updated manually (by the agent) or automatically (by the system), depending on the actions taken by the agent, customer or carrier (e.g., reinstatement of the policy). Agents and their employees can use this information to be proactive by contacting:
o Clients at renewal.
o Late payers to keep them active.
o Short-term clients to resell or move to individual medical.
o Termed clients to try to win them back.
Tools such as these often contain detailed client information on an agent's entire book of business with a specific carrier. For example, various screens display all current members and past members covered within the last 24 months, dates of birth, whether any exclusionary riders were issued, and member risk class. Plan details are available for individuals and groups, including the types of policies and breakdowns of premium by type of coverage and then by employee and dependent amounts. Other screens provide information on billing, renewals, enrollment and details about the writing agent, which is only accessible to the producing agent. With these tools, you can improve service, track and retain a larger number of customers, boost information accuracy and better manage your cash flow.
Agency management systems can be used in other ways to identify and capitalize on marketing and sales opportunities. For example, customers don't always know how much coverage they need, nor are they always aware of the different coverage options available to them. Using your agency management system, you can easily identify customers who have a home or car of a particular value and provide them with an umbrella policy to protect these assets.
Conclusion
In today's world of instantaneous information, customers have little patience with the old ways of doing business. The insurance industry has been adapting to this reality for some time, and agencies now have many simple yet robust online tools available to meet their clients' needs for faster and better service. Such tools also greatly improve productivity, giving agents and their staff more time to write higher volumes of business at better margins.
In short, technology has become a prerequisite for success. By taking an active role in integrating technology solutions into your business, you'll be well-positioned to compete and thrive.
Even agents who have not yet integrated technology into their businesses understand the need to do so soon. In a survey of independent agents, more than 90% said that real-time technology is critical to gaining a competitive edge in this economy. Whether you're ready to get started or want to upgrade your capabilities, here are some suggestions and tips that can help you proceed:
Examine your workflows. For example, what are your processes for calculating and gathering comparative rates from carriers? Look for opportunities to automate as many processes as possible.
If your agents are spending more time doing paperwork than selling or servicing clients, develop a plan to transition from paper to electronic documents.
Use the Internet to research which carriers offer the most robust set of automated sales and sales management tools.
Help your employees get more out of their management systems and better leverage technology; educate them about the resources they have available and establish procedures to ensure their compliance with the technology-enabled processes.
Take advantage of devices, such as personal digital assistants and mobile phones in your daily work.
Participate in industry groups and read trade publications regularly to understand how others are implementing and using technology at their agencies, and to learn what solutions have been most successful and why.
Mike Norderhaug, CLU, ChFC, is vice president, sales strategy and sales support for Milwaukee-based Assurant Health. He oversees the development of innovations for supporting independent agents who market Assurant Health products nationwide. Norderhaug is also responsible for further supporting agents with strategic marketing initiatives, including proprietary lead, maximizing the revenue opportunities of large call center insurance agencies and developing opportunities for all of the company's distribution channels. He has held various sales executive roles at Assurant Health over the past 17 years.
