 A Special Section Sponsored by Alliance for Productive Technology, Inc.
APT FOURTH ANNUAL SEMCI CONFERENCE
JUNE 2, 1999
"The future is SEMCI ... Working together, agents,
carriers and vendors are paving the way."
In welcoming the attendees to its Fourth Annual SEMCI Conference, APT President and CEO Jim Cutro commented that this year's record turnout underscored his belief that at no other time since the formation of the Alliance has the outlook for SEMCI been brighter. He thanked everyone for making it possible for APT to earn the 1998 ACORD Upload Award for Greatest Percent of Growth by a Vendor. On behalf of the Board, he expressed special thanks to Bob Bailey, State Auto chairman and CEO, upon his retirement from the Board, noting his unique contributions to APT and the advancement of SEMCI.
Following in the order given are the highlights of 15 presentations by Alliance members.
1. APT
Presenters: Joe Misner, Vice President, Technical
Tom Daggett, Customer Service & Quality Control Manager
Highlights:
* The case for enhancing AL3 to its fullest potential
* Supports all property and casualty lines of business
* Acknowledged industry workhorse
* Usage will continue to increase for foreseeable future
* Has mature, extensive, knowledgeable user base
* Has withstood the test of time
* Still has substantial untapped potential
* No longer just a batch standard; also operates in real-time and Web environments
* Software uses latest technologies including Objects
* Readily adaptable to XML hierarchy
* ACORD XML initiative welcome, but will be sub-optimal unless ACORD provides unambiguous hierarchical mapping between ObjXML and AL3
* Demonstrated APT AL3-based Web product that meets all criteria for state-of-the-art, real-time software
2. CNA
Presenter: Roy German, Vice President, CIO, CNA Personal Insurance
Highlights:
* SEMCI provides easy access to 3,600 personal lines agents
* Won 3 of 5 1998 ACORD Upload Awards
* Uploading with 1,200 APT and 400 Applied agencies
* Downloading with 1,900 agencies
* Goal to reduce policy turnaround time to 10 minutes; already down to 8 days from 21
* Automated upload contributing to premium growth
* August 1999 begin endorsement processing pilot in IL, MI, NJ, OR, TX, WA
* Using SAM internally on large scale; excellent functionality even in unusual situations
* APT webSEMCI, a major part of Web strategy
* Will link webSEMCI to other services
* IVANS hosting webSEMCI server
3. Arbella
Presenter: Kim Farrell, Senior Manager, Agency Interface & Policy Automation
Highlights:
* Over 700 agencies, 300 uploading via APT
* Upload averaging 1,000 new business policies per week
* Downloading 70% of business
* Average input time for new business or change 1-2 seconds
* Acceptance ratio 97% for new business and changes; rejects mostly VIN-related
* Agent retains all paper
* 200% improvement in time to process new business internally via SAM
* Have provided some SAMs when agency's system not APT-enabled
* Uploading changes with S.I.S. and AMS PathFinder since 1998
* Currently beta testing change processing on all three strategic AMS platforms
* By year end, expect over 260 agents to be uploading changes
* APT webSEMCI decision postponed due to unrelated Year 2000 issues
4. State Auto
Presenter: Noreen Johnson, Vice President, Director of Information Technologies
Highlights:
* "We're ready when you are!" --- Agents and vendors need to get going
* Through May, uploading with 688 agencies, 88% S.I.S., 8% AMS, 4% Applied
* Upload handling 38% of new business and 35% of changes
* More vendors must finish implementing change processing, otherwise just "chasing our tails"
* Rejection rate 21%, down from 34%, further improvements to come
* Decs no longer sent to 1/3 of agencies
* Qualified help-desk essential
* $15 average monthly upload communication cost per agent; reductions imminent
* $20 average monthly download communication cost per agent
* Expect substantial further savings from change processing and IVANS Transfer Manager
* Achieving overall headcount and dollar savings-- more to come!
5. IIAA
Presenters: Jeffrey Yates, CEO, Industry & State Relations
Chris Amrhein, Vice President, Industry Affairs
Highlights:
* SEMCI is real and vital to the independent agency system
* SEMCI is not about technology, and its business value for independent agents has not changed
* SEMCI is analogous to the one-stop shopping provided by Web sites such as Amazon.com
* Vendors and carriers should be proactive and sell SEMCI to agents
* Industry needs further education regarding value of SEMCI
* Agents definitely don't want proprietary systems, Web-based or otherwise
* Glad to see APT and Applied offering real-time SEMCI
* Carriers should use the Internet and SEMCI
* ACORD XML initiative with IIAA ACT is key; "Fast Track" dictionary within 120 days, then we should pursue the hierarchical AL3 mappings requested by APT
6. AMSUG
Presenters: Southgate Jones, Jr.,
Agency Principal, CSC Corporation; APT Chairman-elect; 1998 Chairman, AMSUG Industry Affairs Committee
Larry Magill, Chief Operations Officer
Highlights:
* Most AMSUG agents ready for SEMCI
* If agents aren't ready, AMSUG must understand why
* Great response from agents twice this year when asked to support SEMCI
* 1,550 APT-enabled AMSUG agencies thru March; 3,200 forecast by year-end
* Change processing is essential and is on the way
* Some carrier and vendor implementations aren't true SEMCI--agents must be able to differentiate
* Agree with IIAA that vendors and carriers shouldn't wait for agents to demand SEMCI
* ACORD should develop the AL3 Standard to its fullest potential
* Success of AMSUG's May E-Commerce Conference confirms interest and activity level
7. ARGIAS
Presenter: Keith Savino, Vice President, Chief Information Officer, Insurance Resource Brokerage Group
Highlights:
* ARGIAS User Group represents Delphi's Redshaw and cd.global customers
* SEMCI needed to sell insurance efficiently--unnecessary to learn and use different proprietary systems; SEMCI simple to learn and easy to operate
* In 1998, agents and Delphi CEO met and agreed to offer "true" SEMCI
* APT selected as SEMCI solution and best way for keeping current with ACORD Forms
* 25% of Redshaw agencies already APT-enabled for forms, others in Delphi upload queue
* 5 carriers testing Redshaw upload--just the tip of the iceberg!
* Agents view Web-based carrier interface as another unwanted proprietary facility
* Renewed excitement--the future for SEMCI is bright; see www.arias.org
* ACORD and IIAA XML initiative great but also need to have a clear path to and from AL3
8. AMS
Presenter: Rich Roy, Executive Vice President, Chief Marketing Officer
Highlights:
* AfW, Prime and non-browser Sagitta: Now SEMCI-enabled via SAM for new business
* AfW, Prime and Sagitta browser: SEMCI-enabled for changes and new business by 3Q99
* Support for SEMCI requires scarce resources, but proceeding
* Geared to ship, install and train 150 SAMs monthly--can do more if needed
* CNA and Hartford major 1999 SEMCI deployments
* Fewer than 25% of AMS agencies APT-enabled; expect 75% by year-end 2000
* More carriers needed to realize multi-company aspect of SEMCI
* AMS must and will support non-SEMCI alternatives
9. IVANS
Presenters: Dan Carmichael, President & CEO
Bill Tedrick, Vice President, Applications & Consulting
Highlights:
* Results of just-completed IVANS
agency survey
3,500 agencies surveyed, 12% response
84% consider SEMCI important
24% uploading
74% have Internet access
16% plan to have Internet access within one year
56% offer Internet access to over 3/4 of their employees
91% are Year 2000 compliant
41% of carriers offering SEMCI upload
70% of carriers offering proprietary upload
* Agents doing SEMCI are enthusiastic, citing simplicity, minimal training
* IVANS promotion of industry-standard security architecture widely endorsed by industry
* IVANS Access eXpert has 16,500 agency connect points for software like APT webSEMCI
* IVANS Transfer Manager supported by all major industry vendors
* Support ACORD development of AL3 Standard to its fullest potential
* Working with IIAA and ACORD on XML initiative
* Hosting webSEMCI for Atlantic Mutual and CNA
* Hosting APT's webSEMCI demo via Internet and extranet; All personal and commercial lines supported--Try it, you'll like it!
10. Delphi
Presenter: Cindy Schnier, Vice President, Product Management
Highlights:
* In 1998, Delphi renewed its commitment to "true" SEMCI and APT
* Redshaw upload now in testing with 5 carriers for 6 lines of business
* cd.one and cd.global upload beta expected September-October with change processing
* Transfer Manager available in cd.global Release 2.4
* Design of new systems will facilitate AL3 maintenance and addition of new lines
* Successful 4Q98 Delphi-APT effort to add Canadian and Lloyd's forms
* Evaluating APT webSEMCI for use in new ebix.com site
* All Delphi systems are Year 2000 compliant
11. Atlantic Mutual
Presenter: Ron Dudley, Assistant Vice President, Information Systems
Highlights:
* Objective: Move from total proprietary to total SEMCI virtually overnight
* Developing new SEMCI-enabled systems for both personal and commercial lines
* Personal lines: Uploading with 51% of Applied agencies, up from 32% last year;
* APT-enabled agencies next, expect 12% by year-end and significant increase in 2000
* Commercial lines: Will upload with APT-enabled agencies first, BOP in summer, package in fall
* Internet quoting system available soon for personal package--will include all 6 lines, not just home and auto, and also interface with agency management system
* Offering APT webSEMCI to all Atlantic agencies
* IVANS hosting webSEMCI and performing reformatting
* Change processing very high priority, will offer next year
12. Norfolk & Dedham
Presenter: Bob Wychulis, Vice President, Information Technology
Highlights:
* SEMCI all about improved service and reduced cost
* Paper-free environment
* First to upload BOP via APT
* APT provides first-class products and support
* Evaluating APT webSEMCI as additional means of agency access
13. Auto-Owners
Presenter: Jim Schumacher, Director, Agency Systems
Highlights:
* APT member since 1998
* Benefits of SEMCI apparent: ease of doing business, accuracy and better turnaround
* Increased vendor, agency, and carrier support all critical--2 out of 3 isn't enough!
* Uploading with 50 S.I.S. agents; project 500 from all APT vendors by year-end
* Pace of rollout depends on quality and availability of vendor change processing facilities
* Hope and expect that having change processing will break logjam for many agents
* Carrier support also critical to realizing the multi-company aspect of SEMCI
* Evaluating adding dwelling fire and commercial auto upload
* APT webSEMCI under review
14. Rating Services
Member AMS Holding Group
Presenters: Ed Olsen, Senior Vice President
Ken Clark, Vice President, Research & Development
Highlights:
* 20 years' experience providing casualty rates for personal and commercial lines
* Administers 8,000 custom and non-custom rating plans for 3,000 carriers
* 22,000 customers using comparative and carrier-specific rating facilities
* Systems exchange AL3 transactions with both APT desktop and Web products
* Products now available to all vendors
* New Internet rating product
* Recently announced rate and software distribution via Internet
* Supports both the ACORD AL3 and ObjX Standards
15. Penn National
Presenter: Dave Jakowski, Director Personal Lines Marketing
Highlights:
* 1,200-plus agencies, 8 uploading via APT, 150 by year-end
* Multi-company aspect of SEMCI is critical, otherwise it's viewed as proprietary
* PNI Interface Help Desk invaluable,
4-person staff
* Underwriting and workflow automated using APT Carrier SAM and PNI EPIC system
* SAM also used internally to process business of non-uploading agencies
* 35% overall improvement in turnaround time
* Re-engineering for SEMCI: 20% reduction in regional staff, 40-50% projected
* Change processing essential, vendors must deliver by October 1999
* Evaluating APT webSEMCI
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