By Elisabeth Boone, CPCU
Quick--name the leading vendors of automation systems for independent property/casualty agencies.
Typically, when we think of vendors, what comes first to mind are the "Big A's": Applied and AMS, and the "Big D": Delphi. Among old-line vendors, these are the largest and best-known survivors of the massive consolidation trend that has swept the agency automation world over the last several years.
But there's yet another hardy veteran of the automation wars, one whose name seems familiar but that has tended to be associated more with rating systems than with full-fledged agency management installations. Meet CAIR Systems, a California-based vendor that began life in the 1970s as a pioneer in electronic personal and commercial lines rating modules for California agents and is now positioning itself to move into serious contention as a creator and distributor of next-generation agency automation systems.
William L. Salway, president, GDI, Inc. and CAIR Systems
To learn about the forces motivating this transformation we'll talk with CAIR's president, William Salway; with Sushil Garg, chief executive officer of the vendor's parent company, GDI, Inc.; and with agency principal Susan Rodriguez, who's president of CAIR's National Users Society and who served on the vendor's Product Development Management Group, which provided significant input for the development of its recently released Explorer agency management system. Then we'll check out the features of the Explorer system and take a look at CAIR's direction for the future. First, however, let's trace CAIR's progress from the time it was founded up to the present day.
A technological odyssey
In 1976, the year it began operations, CAIR Systems introduced Computer Assisted Insurance Rating (CAIR), a personal lines rating system that operated in an on-line, time-sharing environment. The next year the vendor began to offer MVRs on line, and in 1983 it launched its Evolution agency management system. The year 1984 saw the release of the CAIR II Personal Lines Comparative Rating System for PCs; that same year CAIR developed a proprietary data transmission network, RIDE (Remote Insurance Data Exchange). In 1986 CAIR introduced its QUICKRATE Commercial Lines Rating System; in 1990 it released its Evolution system operating on SCO UNIX/Intel, DOS/Novell NetWare/Intel, and AIX/RS6000 platforms. Although its volume has never approached that of the Big 3 agency automation vendors, over the years CAIR has won a strong following among its users, whose loyalty is based not only on the quality of the vendor's products but also on its solid commitment to responsive customer service.
With the advent of the Windows operating environment, CAIR--like its competitors--committed itself to developing an agency automation system that would offer users the speed and flexibility of Windows technology in a client/server configuration. The expense associated with this undertaking was huge, and--also like its counterparts--CAIR was beset by the pressures of the intensely volatile and competitive agency automation environment. Then, in August 1995, CAIR received a much-needed infusion of both financial and technological resources when it was acquired by Garg Data International (GDI), a pioneer in the emerging science of systems integration. Under the leadership of GDI founder and Chief Executive Officer Sushil Garg, a respected computer engineer, CAIR was able to develop, test, and launch its new Explorer agency automation system in less than a year's time.
Sushil Garg, CEO, Garg Data International, Inc.
Designed to work on multiple platforms, this version of Explorer now is being installed in the offices of users nationwide, either as a new system or as an upgrade to the vendor's earlier Explorer release or its Evolution system. For agencies that are upgrading, CAIR is providing hardware and software conversion service at no cost--a gesture that may seem unusual in today's cost-conscious environment but that is illustrative of the level of service that has allowed CAIR to develop its fiercely loyal user base. What's more, in developing Explorer, CAIR actively solicited input and feedback from users of its Evolution system--and, the vendor says, the new release clearly reflects a high level of agent involvement.
"We listen--and we hear you"
If there's a credo at CAIR Systems, it's the one stated above. As GDI founder Sushil Garg says, the organization's commitment is "to lead with technology and follow with service." Because of its excellent service, Garg notes, GDI and CAIR rarely if ever lose a customer. "We search for new directions in technology that add value," he explains. "Our customers don't need to torture themselves with complex technologies--we take care of it for them." Making technology painless is only part of the equation, however--the other part is to establish measurable standards of customer satisfaction. "Every vendor says it has good service," Garg comments. "We have measures and numbers that tell the story in black and white. In hard times, we would choose to compromise sales, not service."
Echoing that sentiment is CAIR President Bill Salway, who's been with the vendor since 1989 and who presided over the series of Explorer product development sessions held in late 1995 and early 1996 at which input from a cross section of users was solicited. "Our users had a stake in the system, so there was very strong buy-in," Salway explains. This approach paid dividends during the development process, when customers were eagerly awaiting the upgrade to a Windows-based client/server system to replace their existing Alpha Micro hardware and older software. "We have very loyal, patient users, almost all of whom resisted the temptation to go to competing vendors," Salway says proudly.
Susan Rodriguez, president of CAIR's National Users Society
PDMG: A forum for users
Actively involved in the Explorer product development process was agent Susan Rodriguez, president of Montgomery, Fansler, Carlson & Valois Insurance in Santa Barbara, California. The $55 million agency has some 75% of its volume in commercial lines and operates three branch offices with a total of 70 workstations. Scheduled for an upgrade to Explorer, the agency has been using CAIR's Evolution system since 1987. Rodriguez, who serves as president of the CAIR National Users Society, attended numerous sessions of the Product Development Management Group (PDMG). PDMG, she explains, brought together "a mix of agencies with different areas of emphasis: personal lines, commercial lines, benefits." Because the Explorer system was being designed with multiple modules, breakout sessions were attended by agency representatives with specific areas of expertise: accounting and finance, human resources, benefits, customer service. Seven agencies, including Montgomery, Fansler, were designated "core" agencies on PDMG; six others served as members at large.
After an introductory meeting in September 1995, PDMG sessions were held monthly through February 1996. Each session, Rodriguez says, was an intensive two-day meeting held on a Friday and Saturday, attended by CAIR's programmers and other technical experts. "CAIR also asked for our input between meetings," she explains. "For example, once we were asked to rank the importance of the reports available on Evolution, and our input was used as the basis for discussion at the next meeting. At each meeting a specific issue was discussed: sales and marketing, accounting, human resources."
How responsive was the vendor to suggestions and requests from users? "They definitely listened to what users had to say," Rodriguez replies. For example, "They sent all PDMG members the business requirements they had given their programmers." In cases where the vendor found users' suggestions infeasible, they always gave reasons, Rodriguez comments. "CAIR has worked long and hard to get Explorer out," she observes, adding that she hopes the pace of conversion from Evolution will be "aggressive." Although her agency has not yet upgraded to Explorer, she says, she's heard favorable comments about the new system from other users. So far as Evolution is concerned, Rodriguez says, "It's been a good system. It's dated and needs to be overhauled, but we've had it in our agency for 11 years--and that says a lot."
Exploring Explorer: How it works
What makes CAIR's Explorer agency management system tick--and what does the vendor see as its target market? Taking the second question first, Bill Salway says Explorer is designed for agencies with premium volume of $50 million or more. "Agencies of this size are drawn to us because of our willingness to customize certain functions they require," he explains. According to Product Marketing Manager Holly Gomes, Explorer offers a built-in flexibility that allows users to make changes and corrections immediately and easily. "If you make a mistake, you can correct it on the fly, without having to back out of the system," she points out. "This is a huge productivity tool." What's more, she adds, Explorer lets an agency principal create a report by simply clicking on the desired built-in parameters. "Typically, a CEO has to go to the MIS department to request a report, then wait for it to be created in Excel," she observes. "With Explorer, even if you're not PC literate, you can get information exactly the way you want it, and summary data is easily available."
Explorer is designed to operate on four industry-standard operating systems: Windows NT, Novell NetWare, SCO UNIX with Intel-based servers, and the IBM AIX/RS6000 system. Explorer enables users to move information among third-party applications and provides electronic interface to carriers via APT, ACORD, and IVANS. The system is also compatible with leading industry database and relational database software and current client/server database technology such as SQL Server. The system's graphical user interface (GUI) features include intuitive on-screen buttons, point-and-click mouse capabilities, a graphics pop-up menu, and pull-down menus. Memos, faxes, and call messaging functions are provided. For word processing, users may select either Word or WordPerfect. The system is fully Year 2000 compliant (Evolution users awaiting an upgrade to Explorer also have Year 2000 compliance provided under their software maintenance agreement).
Written in PowerBuilder, a leading development tool for object-oriented client/server applications, Explorer is an open, standards-based package that can be adapted as required to meet changing needs. The scalable system may be expanded by either adding a file server or upgrading the existing one. The system is composed of seven task-specific desktop modules:
* CAIR Executive Office--This application gives agency executives key financial reports on demand: profit and loss, cash management, balance sheet, financial indicators, new business and renewal business activities, and miscellaneous reports. Its capabilities include querying, analyzing, reporting, tracking, and forecasting.
* Client Services Desktop--A feature called Intelligent Interflow enables users to obtain information from various parts of the desktop. All document changes are dated and recorded for later use to help manage errors and omissions exposures. An Employee Benefits segment allows users to manage the agency's life, health, and disability insurance and ERISA compliance filings. There is transparent data exchange from other parts of the Client Services Desktop, and a library of ACORD WYSIWYG forms is provided.
* Accounting Desktop--This module manages generalized accounting requests: general ledger, accounts receivable, accounts payable, aged accounts receivable, payments, client receivables, cash receipts, journal entries, and checks. The module offers real-time posting and multiple branch support so financials can be combined.
* Producers' Desktop--Using portable computers, producers in the field can access the same information as employees located in the home office. Producers view data on a laptop computer, then merge information on the network at the home office when they return. This module stores a prospect database, manages marketing campaigns (including a string of events), tracks submissions, and creates proposals.
* Receptionist's Desktop--Automated message distribution is a universal in-box that keeps all messages in one place and monitors messages to see if they have been delivered and opened. At the computer, the receptionist inputs messages and distributes them electronically to workstations. Message flags indicate the type of message--urgent, phoned, please call back, returned your call--and any message may be saved for future use.
* Human Resources Desktop--This module manages essential employee data and record keeping: employee census information, attendance tracking, payroll setup, performance reviews, vacation schedules, continuing education dates and credits, and licenses and license renewal dates. Also included is a Workers Compensation First Report of Injury or Illness ACORD form. Security features allow users to specify different levels of access to data.
* System Manager--This module provides a set of tools for software administration and system maintenance: global code changes; master file storage for companies, vendors, producers, and agency information; system default library; system table maintenance; and word processing command center.
What's ahead?
Once Explorer has been installed in existing users' agencies, CAIR president Bill Salway says, the vendor plans an all-out marketing campaign to expand its user base among mid-sized and large agencies nationwide. Further down the line, GDI CEO Sushil Garg says, is a move into the insurer market. "In CAIR, we saw a real opportunity in the agency automation market that would lead to the insurer market itself," he explains. Garg describes the Internet as "the most amazing phenomenon I've seen in my career" and believes that the Net, initially viewed as having little impact on agency or company operations, "will change the insurance business far more dramatically than anyone imagines." Over the next three years, Garg adds, he sees the insurance business as "very much Internet centered, and much more aggressive and efficient." Salway concurs, pointing out a significant Internet opportunity for smaller agencies: "Agencies of a certain size can't afford the technological expertise and expense of a client/server system. We envision giving those agencies access to one of several servers on line, where for a monthly stipend they could dial in, store data, and get expert assistance with their hardware and software problems. It's almost a return to the days of time sharing, with GDI taking care of the technology so smaller agencies can afford to be players."
With the introduction of Explorer, CAIR Systems clearly aims to position itself as a top-tier player in the big-ticket, high-stakes world of agency automation. From state-specific rating systems to the cutting-edge technology of Windows and sophisticated client/server installations, this small but scrappy vendor has survived several turbulent generations of agency automation and now, enlivened by new financial, technological, and leadership resources, seems poised to take on the world. *
The author
Elisabeth Boone, CPCU, is a copy manager for a major health sciences publisher based in St. Louis. She is a former member of the editorial staffs of Best's Review and American Agent & Broker.
Headquarters
Newport Beach, California
For Explorer product/hardware information
Tim Rush, (949) 851-2002, ext. 3230; e-mail: trush@gdis.com
Web site address, www.cairsystems.com
Ownership, Affiliate of Garg Data International, Inc. (GDI, Inc.)
Agency management system product
Explorer® Information Management System
Key user group contact
Susan Rodriguez, (805) 965-0071, ext. 185, e-mail: srodriguez@mfcv.com
©COPYRIGHT: The Rough Notes Magazine, 1998