SLIDING BACK OR MOVING AHEAD?
Is agents' common Internet protocol interface in the
best interest of all parties?
By Cal Durland
ACORD's next generation of standards...are interoperable—
agents, companies, and vendors can share data in real time.
The Web--is it a new solution in the pursuit of workable, cost effective agency-company electronic interface? Or is it a step backward to the regeneration of proprietary systems? The current use of Web technology by carriers is causing agents to spend time learning workflows for multiple carriers. Carriers' goals are to reduce their costs, yet at what cost to the independent agency workforce?
Ten years ago, a task group, the ACORD Interface System Requirements panel, was charged with documenting that "the single most important factor to improve the efficiency of our industry is effective use of automation and electronic interface." The result of this project was a document called the ACORD Interface System Requirements panel report. This panel came to the conclusion that "Proprietary (single-company) interface systems do nothing to enhance flexibility -- they are restrictive by their very nature."
Growth in the industry
Happily, our industry has achieved much since this report was issued. Hundreds of companies now base their interface on ACORD's AL3 Standards. Download occurs among 31,000 partners, and upload activity has grown continuously over the years. Yet as business needs evolve and we seek low-cost information at our fingertips, the industry is looking to Web technology for answers.
But where is this technology taking us? Companies now possess a new technology that will give them a competitive edge and allow their agents to interface with them faster. Yet agents once again are faced with the dilemma of double entry. They must first enter data onto a Web site, and again into their agency management system. The company's response is to send the agency a download of the information. Yet in reality, what information does the agency get back from the company--policy information?
As the point-of-sale source for information, agents are key to providing the company with underwriting and rating data. An agent who wishes to track a prospect, issue binders and certificates, or provide loss control services must have access to complete information about the insured. Unfortunately, this information must be rekeyed.
ACORD responds to industry needs
Ten years ago the ISR panel said that progress towards SEMCI was slow. Why? Because the industry lacked electronic policy databases in the agency, interface capability, and interface coordination. Over the years the ACORD standards process has responded to these industry needs. Agency management vendors have built their systems using these standards, and agents have built up their databases.
Agency management systems allow agents to interface with many companies. If, however, Web technology weakens agents by sidetracking their databases, what have we gained by the implementation of Internet technology? Are we setting our industry back 10 years?
In addition to revised workflow, what other issues will agents have to face using this new technology? And who will deal with providers, connection costs, and a new generation of support issues? Is this just another burden for agents?
The burden doesn't have to fall on the agents. ACORD's next generation of standards is real and these standards are being implemented by companies and vendors using new and innovative technologies. The bonus of using the standards is that they are interoperable -- agents, companies, and vendors can share data in real time. These high-tech applications will run in various locations from the agent desktop to the company mainframe and everywhere in between, including the Internet.
Through ACORD, an industry association, companies, vendors, and agencies have the tools available to reach their technology goals. ACORD is owned by the industry, and through the input of volunteers, members, and participants, is able to provide implementation support to those who wish to use standards to enable their technology. Yet even with this support, why do some companies still avoid using industry standards? This is a question agents have been asking for years.
A little history
Eight years ago, the Independent Insurance Agents of America hired Perot Systems to investigate agency automation and progress towards SEMCI. According to this report, SEMCI was correctly identified as the ultimate goal, and ACORD had established the standards for interface. The report also mentioned the need for enforcement of the standards by a responsible organization.
The question of whether one organization should be responsible for certifying and enforcing the standards is still unresolved. The industry, meanwhile, is still asking the whereabouts of a unified voice to pressure vendors and companies for compliance with industry standards.
Several groups, including the ACORD Board, ACORD members, the ACORD Agents Advisory Committee, and vendor user group committees would like to see ACORD and agent associations come up with a plan to help the industry focus on a clear path for implementing technology and workflow. ACORD, as the industry association, needs a clear mandate from its participants to be that coordinator.
The question is: are we going to move forward with the implementation of today's technology by using standards, or will the industry take a step back by staying silent while some companies build proprietary solutions? What is the ultimate result and cost to our agency force as well as to the consumer?
We've made a lot of progress in the last 10 years; let's look to the industry and not just the individual carriers to solve our problems. It's up to all of us. Do you want to slide backwards, or move forward into the next century?
Let us know. Get involved in the ACORD Agents Advisory Committee process. The committee has established a discussion database at http://www.acordonline.org/external/
standard/agcyadv.nsf to get feedback from the industry, and especially from agents like you. We need to build support to standardize the industry's position on interface. Let us know if you're interested. *
For more information you can attend "Upload With the Agent Experts" and "Download With the Agent Experts," just two of 37 workshops at ACORD Technology Conference '99.
 The author
Cal Durland is group manager, standards, ACORD. |