INSTANT ACCESS TO RISK ASSESSMENT TOOLS
ChoicePoint's browser-based product is
a cost effective way to get underwriting reports
By David T. Lee
Most of us in the insurance industry have at least a working knowledge of the Internet. And even if we aren't dedicated Net surfers, we understand that references to "www this" and "dot com that" pertain to this internationally accessible network that has grown so quickly it has taken on a life of its own. What many of us don't realize, however, is that the technology that led to today's Web explosion has been around for a long time. The Internet was initially developed for use by colleges and universities as a method of information sharing. The military then began utilizing the network and corporations soon followed when they saw a marketing opportunity so that today, nearly every company, from Fortune 500 giants to the flower shop around the corner, tag their corporate communication with something similar to "visit us on the Internet." Commerce on the Internet is flourishing as consumers are becoming increasingly comfortable purchasing goods and services electronically.
Many experts are realizing another beneficial use of this technology: a cost-effective, secure and infinitely adaptable method of in-house and business-to-business communication. Intranet, a private version of the Internet, has the same design basis, built around Telecommunications Protocol/Internet Protocol (TCP/IP), but can only be accessed by predetermined and authorized users. The security of the data being transmitted continues to be of concern to potential users of any intranet-based product, but the limited access of intranets helps ensure an increased level of control. Intranet's advantages also include efficiencies realized during peak Internet hours, where traffic and congestion slow data flow and communications.
Intranets offer the same benefits of client/server products and groupware such as Lotus Notes, but with a much smaller financial commitment; plus they have the capability of working alongside already established legacy systems. A recent study by International Data Corp. of costs associated with the development of an intranet provides a clear-cut price advantage. The average cost of developing a Notes-based application is almost $250,000; an intranet, however, can be created for less than $10,000.
Because of the resulting simplified and rapid access to information, productivity tends to rise, especially in organizations with large numbers of diversely located employees. Borders and time zones begin to disappear when employees and customers have access to resources, 24 hours a day, 7 days a week, by simply dialing into a Web server. Sales and service personnel are able to collaborate, gain access to pertinent information and link themselves easily to the home office, regardless of location.
Operational cost savings provide another demonstrable advantage of intranets. Consider the amount of money spent on the printing of internal and external communication such as phone directories, catalogs, brochures and price sheets; they soon become outdated, especially in today's ever-changing marketplace. Now, imagine the savings in printing costs alone if expensive communication pieces were produced digitally and made available on a company's intranet. Updates could be made quickly and inexpensively.
The advent of browser-based technologies and private intranets has led to the widespread use of these cost-effective methods of information transfer in many industries. Because they operate using this Internet technology, there are no software or expensive start-up costs, which often are very time and labor intensive. Companies that have taken advantage of intranets have seen their communication costs decrease by as much as 40%.
Often companies using intranets will offer access to each other's sites and group themselves into what are called value added networks (VAN). They have developed naturally as a result of increased familiarity with Internet technology. A company or organization, with its own group of users and set of competencies, links its server to the server of its business partners. The products and services of both organizations are then readily available to the employees and/or customers of the organizations. The partnering possibilities are virtually unlimited.
IVANS, the insurance industry-owned Insurance Value Added Network Services, is an example of such an arrangement. As the largest proprietary VAN of P&C agents and companies, its 80,000 insurance and healthcare subscribers take advantage of partnerships with technology companies such as Microsoft and MCI for platforms and telecommunication access that connects them to a wide array of information products and databases.
The insurance industry has progressively become more comfortable using the information superhighway. For example, server technology is embraced by many companies to connect agents to the carrier for functions such as electronic mail and application processing. However, the insurance industry lags behind others in utilizing all the benefits of electronic commerce and communication. Insurance agents' use of desktop computers illustrates this point. For example, we estimate that 40% of agents are using DOS, which means they are missing out on the improved efficiency and intuitiveness of Windows-based products.
As our customers' comfort level has increased, ChoicePoint has concentrated on developing applications that utilize current technology to improve efficiency for customers. In response to the trend toward use of intranet technology, we have introduced the industry's first complete browser-based information ordering solution for insurance companies and their agents. The product is called ChoicePointLink™ and it provides extremely fast and relatively inexpensive availability of P&C insurance risk assessment products.
ChoicePointLink is a browser-based product that is similar to our Point of Sale system. It is capable of providing instant access to C.L.U.E.®, auto and property, motor vehicle records, Additional Driver Discovery (A.D.D.SM), National Credit File (NCFSM), VIN ServicesSM and claims products. These information tools can now be placed at the agent's workstation without the installation of additional desktop software.
To gain access, an agent simply needs a PC, a browser, a modem and a phone line. Our goal in developing this interface is to provide our customers and their agents with an easy-to-use and cost effective way to take advantage of our products and services.
For the 30,000 agents who subscribe to IVANS, ChoicePointLink is already a reality. The utilization of browser-based systems permits direct access from the IVANS server, via the NetConnect™ family of products, or from the insurance company's server to ChoicePoint's server. In the past, clients have relied on their own programmers to make it possible to link their company's system to a VAN or third-party vendor. Now it is possible for agents, claims departments and underwriting departments to have an instant connection to this new, secure intranet-based ordering system. We believe this is another example of ChoicePoint's commitment to providing our customers with the right choices at the precise point at which a decision is made.
IVANS and ChoicePoint have recently entered into an agreement to create the first intranet-based ordering system for agents to access products and services at the point-of-sale. With the software residing on IVANS secured server and a secured network link to ChoicePoint, customers no longer face down time associated with ordering products with conventional connection and installations.
This direct access now enjoyed by IVANS subscribers will soon be available directly to insurance carriers and their agents, providing the same cost and time saving advantages. When companies take advantage of intranets, the amount of time required to get a system up and running is significantly lower than with traditional dial-up methods. The start-up time decreases from five or six months with the traditional software and modem connection to two weeks with a product like ChoicePointLink.
The steps taken by a user to gain access to this new method of product ordering and delivery are simple. When we explain the process to customers, we ask them to visualize an insurance agent, who connects to IVANS every day via NetConnect or directly to a company's server when access to products and services is needed. Once the appropriate IDs and passwords are established, the agent will be provided with a ChoicePointLink icon on his or her computer screen. With the click of a mouse and the entering of a pre-assigned ID and password, the agent can access the full range of ChoicePoint's services.
These are some of the tools and strategic directions ChoicePoint is implementing to take advantage of intranet delivery. The cost savings and improvements in efficiency a company can realize are beginning to match earlier, sometimes outsized predictions for the "information superhighway." The important point is to investigate how this technology can benefit your organization.
The author
David T. Lee is senior vice president, marketing and sales for ChoicePoint. He is responsible for marketing and sales for the personal lines property and casualty and life and health insurance services. An officer of the company since 1991, Lee came to the company in 1984 and has served as financial systems analyst, director of corporate financial systems, assistant vice president and executive assistant to the CEO, and vice president for systems and services. He previously worked for Arthur Andersen and Company as a staff consultant in the information consulting division.
©COPYRIGHT: The Rough Notes Magazine, 1998