TECHNOLOGY
Transformation Station wins approval of
major agency management system user groups
By Bill Jenkins
Executives from the Applied Systems Client Network and members of the AMS Users' Group executive committee, shown here at the AMSUG 26th National Conference held in Dallas, Texas, in March, are enthusiastic about the possibilities that Transformation Station offers. Pictured (front, from left) are Peter Anderson, ASCnet president; Dirk Boudreaux, 2001-2002 president of AMSUG; and Jo Ann Litwin, chair of the ASCnet Interface Committee. Back row, from left, are AMSUG executives Pam Parry, 2002-2003 president; Bev Coats, 2000-2001 president; Bill Travaille, secretary/treasurer; Loyd Stroup, member at large; and Roy Riley, vice-president.
Some call it SEMCI; others talk about straight through processing or refer to a once-and-done workflow. Whatever it's called, virtually every independent agent agrees that improved, and truly efficient, multi-company electronic communication is a top priority. While earlier initiatives held some promise, ultimately they were derailed. One thing these past initiatives have all lacked is so-called "critical mass"--acceptance and support by enough agencies and companies to create a head of steam that will generate the necessary momentum to keep the train on the track. But thanks to a new product, that head of steam is building. It's called Transformation Station and even though it's new, it already has both broad acceptance and proven results.
In simplest terms, Transformation Station is a connection point for an agency management system on one side and an insurance carrier's computer system on the other. Through this connection point, an agency can use its own agency management system to rate policies, request endorsements, or make inquiries on company billing for its customers. (The sidebar on the facing page describes Transformation Station's processes in more detail.)
And as for the previously elusive critical mass, the two largest independent agency system vendors have both "signed on." AMS Systems, along with the AMS Users' Group (AMSUG), and Applied Systems, along with the Applied Systems Client Network (ASCnet) are working together to help their respective users and members understand how Transformation Station can enable more efficient workflows and real-time transaction processing. The cooperation between the vendors and user groups also sends an important message to the insurance companies and third-party vendors: they too should use Transformation Station to communicate with the agencies their user groups represent.
Applied Systems users have already had success using Transformation Station through Applied's WARP technology initiative. Litwin, Castle & Christ Agency in Orchard Park, New York, has been using it for real-time rating, quoting and policy issuance of Travelers businessowners package policies. "Our commercial lines CSR loves the program," says Jo Ann Litwin, third-generation agency principal, "because it lets her do everything directly from our Applied system without having to dial out to another Web site or re-key all of the information. It's already saved us money and helps us focus on sales and service, making us much more competitive in this market."
In fact, the success of Litwin's agency and the success of other Applied agencies that have been using Transformation Station and WARP technology have led to the creation of a soon-to-be-published study of its benefits from an agency perspective. Litwin, who's chair of the ASCnet Interface Committee, explains: "We're comparing the old way of doing business with the new way of doing business through Transformation Station. Take rating as an example. We're measuring the time it takes to go out to Web sites, or DOS raters, or manual rating to determine the time saved using this new tool." She says the initial results are dramatic. Using Transformation Station, it takes from four-and-a-half to five-and-a-half minutes to rate a BOP from beginning to end--starting with a blank application. Depending on the company Web site, she says the same transaction can take anywhere from 20 to 45 minutes. With a DOS rater, it can take anywhere from 17 minutes to 25 minutes. These costs are very easy to track, she continues. "The soft costs are harder to quantify--the cost of errors--the cost of a dissatisfied customer when a quote isn't accurate."
Peter Anderson of Anderson Insurance Services in Marshfield, Massachusetts, is also in frequent contact with agents using Transformation Station. As president of ASCnet, he's heard from agents who've told him how they're able to turn transactions around more quickly and how, in a matter of minutes, they receive not just a quote--but a rate--with actual bindable numbers. "They're saying that, for the companies they're using it with, Transformation Station has revolutionized the way they're doing business." Anderson says the list of carriers using it to do real-time transactions on a day-in and day-out basis is growing. "Transformation Station is on a roll."
In pursuit of critical mass
As of March 2002, three major agency management system vendors, AMS, Applied and DORIS, have signed on for Transformation Station. Collectively, their systems are in more than 25,000 independent agencies, representing approximately 300,000 individual users--certainly a substantial enough number to bring about significant change in the industry.
From the perspective of agencies using AMS systems, Dirk Boudreaux, the 2001-2002 president of AMSUG, explains why this is so important. "The ability to receive up-to-date, real-time information without having to go to various proprietary systems helps agencies finally get to a once-and-done scenario. Transformation Station removes some of the barriers companies have faced when choosing what to implement. It provides a solution that no longer depends upon the specific agency management system, be it AMS, Applied, or any other vendor that adopts the technology."
Pam Parry with Golseth & Gregson Insurance Services in Tucson, Arizona, is the 2002-2003 president of AMSUG. She says Transformation Station, which AMS systems access by way of WebSEMCI, is bringing the dream of efficient workflows and real-time transaction processing closer to reality. "WebSEMCI creates a form for an agent to input whatever company-specific information is necessary to get an accurate, real-time quote back directly from the company's computer system. I'd like to have a nickel from every insurance agency in the country that receives an inaccurate quote today because of information requirements that haven't been updated," she quips.
Bev Coats, with Colton, Downey & Hubbard Agency in Jacksonville, Illinois, agrees. "It's accurate. That's why it's so important to have the real-time capability--the accuracy issue. Add to that the customer service issues--you're giving somebody a response quickly. We're in an instant world these days and customers want an instant quote. And now with real-time you can give them that." Coats, 2000-2001 president of AMSUG, notes that more carriers need to connect to Transformation Station so that this improved workflow and enhanced customer service can be even more widely available. "We need to have more companies connected to Transformation Station--so that it works for everyone."
Rick Gregson, president of Golseth & Gregson, looks at it this way: "Everything in an agency these days is about efficiency. If you have a well-run insurance agency with a marketing and sales mentality and culture--you must find ways to become more efficient so that you can truly free up the sales people to go out and sell. And it's just as important to free up the service people so that they can provide the great service we need to provide to retain our clients. So we as insurance agents are going to align with people who are going to allow us to do that. They need to be partners in Transformation Station. It's a great communication tool for both the agency and the company to align behind."
Spreading the word
Promoting Transformation Station so that it "works for everyone" is a key goal of both Applied and AMS user groups, ASCnet President Peter Anderson explains. "We've been spreading the word with both our user base and insurance companies. We've visited dozens of insurance companies, and the time study that our Interface Committee has created will be invaluable in helping both agents and companies clearly see the advantages in clear dollars-and-cents terms. The potential for both savings and opportunity is tremendous."
Pam Parry says it's exciting to have some 300,000 agents have access to a consistent technology solution. "We finally have a situation where we're working with other user groups. We're not just representing a segmented portion of independent agencies. We're representing, as a group, the majority of independent agencies across the country, so it's of the utmost importance and we're going to the grassroots to get support for this." Peter Anderson agrees, saying, "Although we're using different vendors, we're all agents and all have the same needs."
It would seem that more and more people are agreeing that Transformation Station is indeed "on the right track" and as the conductor says when the train is ready to roll, "All aboard!" *
The author
Bill Jenkins has worked extensively with independent agents for the past 16 years in the areas of marketing, advertising, communication and technology.
Transformation Station is managed by IVANS, an insurance industry-owned technology services provider whose membership includes more than 500 participating firms and more than 100,000 users.
Transformation Station is a data exchange. In plain English, that's a room full of computer boxes with telephone lines going back and forth to the Internet. While the details are much more complex, in its simplest terms, Transformation Station is like a telephone exchange. To use it, you pick up the phone to get a dial tone (connect through your agency management system), dial the number you want to reach (securely log-on to the server) and start talking (using your own agency management system to connect to a company system also able to use Transformation Station). To continue this comparison, what's then added to your phone conversation is translation. If you are speaking English but the person you're speaking to understands only French, you need translation. Transformation Station provides both connection and translation for an agency's electronic data. It enables an agency management system speaking "Applied" or "AMS" to communicate with a company system speaking "ABC company" or "XYZ company."
Perhaps most important, this connection and translation can be "simultaneous translation"--in other words, it can happen in "real time"--while your customer is with you on the phone.
Transformation Station is designed to facilitate many different types of agency company transactions. These include:
* New, renewal and policy change rating
* New, renewal and policy change submission
* Policy inquiry
* Billing inquiry
* Claims inquiry
While new companies are joining Transformation Station virtually every week, the following is a status report as of March 2002. Agents should check with each company, service provider or vendor regarding specific availability information.
Insurance companies using IVANS Transformation Station for real-time agency communication:
* Acuity (formerly Heritage)
* FCCI Commercial Insurance Fund
* Pennsylvania National Mutual Casualty
* St. Paul Fire & Marine Insurance
* Travelers Property Casualty Insurance Company
Third-party services using IVANS Transformation Station:
* ConfirmNet--CertificatesNow
Insurance companies in the process of implementing IVANS Transformation Station for real-time agency communication:
* Cincinnati Equitable Insurance Company
* Donnegal Mutual Insurance Company
* EMC Property & Casualty Insurance Company
* Encompass (Ivantage)
* Frankenmuth Insurance Company
* Ohio Casualty
* One Beacon
* One Beacon (CGU York)
* Protegrity
* SAFECO Insurance Company of America
* Safety Insurance Company (MA)
Third-party services in the process of implementing IVANS Transformation Station for real-time agency communication:
* Applied Rating
* CoverageConnect
* EpointInsure
* Impressive Publishing
* Insurex--NetRating Systems
* Rackley Systems
* Sintech Software, LLC
Agency management system vendors integrating IVANS Transformation Station for real-time agency communication:
* AMS Services
* Doris, Inc.
* Applied Systems
For more information
AMS Services
Web site: www.ams-services.com
AMSUG
Web site: www.amsug.org
Applied Systems
Web site: www.appliedsystems.com
ASCnet
Web site: www.ascnet.org
DORIS
Web site: www.dorisinc.com
IVANS
Web site: www.ivans.com.