As president of the Applied Systems Client Network (ASCnet), Tacoma-based agency principal Tom Taylor is a spokesperson for single entry, multiple company interface--a conundrum made more so in the face of new technology.
As independent agents struggle to make greater and more efficient use of agency management systems, a major threat has appeared on the horizon: browser-based proprietary company upload.
A disturbing number of companies are offering--sometimes requiring--proprietary upload as the most efficient way to move data from agency to company databases. But in reality, this approach is creating extra work by doubling the entry process, increasing employee costs, diverting time from new sales and value-added services, and increasing the opportunity for error.
The insurance industry has spent 20 years and millions of dollars creating ACORD standards for data transfer and SEMCI (single entry, multiple company interface) capabilities. This has led us to efficiencies on both the company and agency side of the equation that have enhanced profits for both. Now is not the time to abandon those initiatives in the name of "Internet enhancements."
The Internet itself isn't the issue here. In fact, it's part of today's SEMCI solution. Certainly all agencies need to be capable of communicating with clients and companies through Internet e-commerce. But moving data already in the agency's management system by reentering it on browser-based company Internet screens is not efficient. This is a duplicate process that interrupts the workflows and processes within the agency.
Some of the companies seem to be doing whatever is easiest for them, without regard for how it will impact their agents. If it is convenient to use the ACORD standards, they will; if not, they will just implement the screens on the Internet and require their agents to fill them in.
Most successful agents have spent a good deal of money on their technology systems. They want to maximize the use of the workflows that are most efficient when using the data within the system. The duplicate entry required by the proprietary screens--with or without ACORD standards--is simply too costly and inefficient for agents.
The potential cost of training and maintaining personnel to do specific company data input on this basis is staggering. One Midwest agency had to hire a full-time entry person at an annual salary of $28,000 just to meet the requirements of its major carrier when separate browser-based data entry was required. That's $28,000 that could be spent providing better service to clients, rounding accounts, or marketing to new customers.
Agents must work with their companies and system vendors to focus on true SEMCI upload of both personal and commercial lines to the companies' databases.
Agents also need to push for other features such as claims and accounting upload and download. We must streamline our workflow processes, reducing duplicate entries and redundancies to lower operational costs. At the same time, these enhancements must provide better client service and improved information that is quickly available to the CSR and client when needed.
SEMCI interface is now being implemented for commercial lines, commissions and claims download. We encourage companies and agents to work together to add additional capabilities for upload and download, including claims data, direct bill commissions and accounts current. Also, we'd like life and health policy information to be integrated into the SEMCI process. We want to make both companies and agents aware of the significant benefits available from these implementations.
Agents need to look carefully at the technology solutions being offered by their carriers. Yes, they have a Windows "look and feel"-- no more ugly 3270 green screens. But once you've cut through all the fluff, it is and will always be a dual entry system for agents. We challenge companies creating proprietary software to find any manager that likes paying his/her staff to do duplicate work. We encourage companies to join others who are currently working with us and who understand the pitfalls of creating proprietary software.
The Applied System Client Network (ASCnet), the user group for clients of Applied Systems, is holding a series of Interface 2000 meetings around the country (see box.) The meetings are designed to show our members the full benefits of interface and why they should take every opportunity to adopt SEMCI when it is made available by their carriers.
ASCnet also is supporting the IIAA's grassroots "Elect SEMCI" campaign. Agents, companies and technology system developers will be able to "vote" for SEMCI at www.semci.org. At its annual convention in Orlando November 1, the IIAA will demonstrate a multi-company, multi-vendor interface using the new ACORD XML standards.
It's time for a gut check. Let's work to stop the move toward proprietary, company-specific processes and get on with the coordinated development and implementations of SEMCI workflows that allow agents to see the cost savings that they expected when they purchased their agency management systems.
SEMCI lowers our costs. By lowering costs, the independent agency system will continue to compete and beat direct writers and captive agents.
The author
Tom Taylor, CPCU, AAI, ARM, is president of Tom Taylor Insurance Brokers, Inc., Tacoma, Washington. He also is 1999-2000 president of the Applied Systems Client Network (ASCnet), based in Altamonte Springs, Florida.
In addition to pushing hard for SEMCI standards, ASCnet is involved with several major initiatives for 2000 and beyond.
Due to increased demand for its educational offerings, a more focused training program was created to meet each agency--and agency member's--unique needs. ASCnet's Annual Education Conference has been revamped to provide networking and training opportunities specifically designed for principals, owners and system managers. The 2000 conference will be held October 4-7 at Sheraton Centre Hotel in Toronto.
To accommodate the special demands of CSRs, bookkeepers and system coordinators, ASCnet has created Education Summits. The Summits contain instruction targeted for support staff and provide a more concentrated learning experience.
ASCnet also has launched its Web-based training program, ASCnetU, which allows members to take advantage of education in the comfort and convenience of their office. More information is available at www.ascnet.org.
ASCnet's concern over the sudden push for proprietary interface by the companies has led to a series of meetings across the country sponsored by the ASCnet Interface Committee.
Since November 1999, "Interface 2000" meetings have been held in San Francisco; Chicago; Los Angeles; Columbus, Ohio; Atlanta; and Springfield, Massachusetts.
These meetings were directed toward regional and national carriers and their local ASCnet agents, bringing them together to discuss interface. ASCnet invites company technology decision-makers to get together with agents to hear why we need SEMCI interface now.
At the day-long sessions, local agent members hear the true story of the high cost of proprietary interface. Discussions include the benefits of the Applied Systems interface capabilities for SEMCI upload and download of both personal and commercial lines.
In the afternoon session, local regional and national company representatives are invited to hear about WARP, Applied's new real-time interface program for rating and policy issuance through the agency system, the Internet and the companies' systems. Agents and company representatives then discuss the benefits for both in the enhanced workflow opportunities with SEMCI and WARP. These grassroots efforts by ASCnet have generated growing awareness and support for true SEMCI Interface.
More information is available at www.ascnet.org.