TECHNOLOGY
Sometimes you have to build your own technology solution to avoid compromising what makes your operation unique
By Nancy Doucette
Jim Romano developed a technology system that meets the distinct needs of the operation.
The saying goes: "If you want a job done right, do it yourself." Back in 1987, when Jim Romano and Michelle Duffett co-founded Insight Insurance Services, Inc., a professional liability program administrator for accountants, architects and engineers, and insurance agents, based in Geneva, Illinois, they wanted a technology solution that would help the fledgling operation work most efficiently. Personal computers hadn't been on the market for very long, but they'd been around long enough for Jim to realize that they were going to provide him the solution he was looking for. Unfortunately, finding a technology system to fulfill his operation's unique needs was the real challenge. He could find none. So, he did the only reasonable thing. He developed his own system.
Jim explains that program administrators are similar to insurance companies in many ways, given their need for ready access to underwriting information. The system that Jim developed stores all the information acquired through the quotation process. And once the policy is issued, its premiums, limits, and deductibles are also added to the database. Should a claim occur, that data is collected, too. With all that data readily available, he says the types of reports that are available are virtually limitless. This report capability is especially useful in helping Insight track producer performance--how much business they submit, their hit ratios, and their loss ratios.
Insight's system also handles submission clearance activity, preventing duplicate quotes. So, if one agent submits a quote request for Smith & Jones today, and another agent submits a quote request for the same account tomorrow, the system will alert the underwriter that a quote on that account is already in the works.
Additionally, Insight is able to keep track of declined risks from year to year, thanks to the history that's housed in the system database. So if they decline Smith & Jones this year, and the account is submitted again the next year, underwriters will be alerted and will be able to know why the account was declined.
Of course, having all this detail readily available keeps Insight in good stead with the carriers for which it administers the programs. So much so that one carrier asked Jim to sell them Insight's system and administer it. Jim declined. "Part of the reason the system works as well as it does for us is because it's ours," he notes. "I don't know that our technology solution is the answer for other organizations. But no matter what technology tool they decide to implement, it's essential that management know how to use it. It's as elementary as using a pencil."
Back in the late '80s when the Insight staff consisted of Jim, Insight co-founder Michelle Duffett, and one other person, Jim was personally involved in the development of the system. "I was doing any job from A to Z," he recalls. "As I was working through a process, I'd discover that the system could handle it. So later on, I'd sit down and write the code." As a technology do-it-yourselfer, Jim laments the fact that he's not doing much programming these days. That task has been turned over to Insight's full-time staff programmer, Mike Ryan.
At its core, Jim notes, Insight's system is essentially the same as it was when he and his colleagues first used it. But it has evolved and continues to do so on an ongoing basis, he explains. Mike Ryan updates the system regularly, based on input from the insurance professionals who make up the Insight staff. Having Mike in-house enables the staff to have up to the moment technology capabilities. Most of the recent changes enhance the electronic transmission of documents and the electronic acceptance of documents. One recent change enhanced the staff underwriters' ability to attach multiple types of documents to e-mail correspondence.
Without standard professional liability applications, though, electronic input for an indication of terms isn't feasible, Jim points out, so manual input still occurs. "All competitors' professional liability apps are slightly different and most are completed by hand, so it's quite difficult for an app to come in and be 'read' by the computer system," he says.
Insight's full-time staff programmer Mike Ryan familiarizes key employees with the latest updates to the system. Appearing with Mike are (from left) Jennifer Wickes, Christine Creighton (seated), and Yvette Joseph.
However, in many states, it is necessary for agents to complete a program administrator's specific application once they've made a decision to accept a particular policy. To assist those agents, Insight has its carriers' specific apps available at its Web site--both as a Word document, which can be completed online, and as a PDF, which can be printed out and completed, then faxed or mailed.
Insight is working with its carriers to allow them to send the policies they prepare electronically. Insight already keeps an electronic version of the policy in its system. That's one more step toward Insight's goal of being paperless--a goal that Jim believes his organization will attain this year. Like the Insight system itself, the document management system that will facilitate the paperless environment will be developed by Jim and Mike. "A couple of years ago when we first started thinking about going paperless, we had some vendors come in. We wanted to see what was available," Jim remembers. "Each one of the vendors said: 'First thing we do is evaluate your processes and change them to fit what has to happen in our system.'" His reaction was: "Wait. I have the best service in my industry. Why should I let you come in and tell me how to run my operation?"
Clearly, Insight prides itself on its 24-to-48-hour turnaround on quotes. Jim emphasizes: "We're set up to provide prompt service. We have a great staff and we've been able to make our technology do what we want it to do, rather than have an outside vendor come in and change our processes so that we do what their system needs us to do."
With the goal of going paperless within reach, Insight has implemented a multi-tiered backup system to prevent the loss of any data. "We have a RAID system--an acronym for redundant arrays of inexpensive disks--that provides instant mirroring of data," he explains. "That means there are two exact copies of every transaction on multiple disk drives." With hard drive failures being among the most common threats to data base systems, mirroring makes sound business sense. If one hard drive fails, the computer switches over to the other hard drive. The shift is invisible to the users, Jim says. The failed hard drive is then replaced and the mirroring process can continue.
Additionally, Insight creates a tape backup that's stored off site each evening. The tape backup would be important should the building be damaged or inaccessible. Jim says it would be a relatively simple matter of finding temporary quarters and some workstations, then using the tape to restore the system. "We'd be ready to go in half-a-day or so," he says.
There's also another storage device in the office that houses all the information on the hard drive. It would be used if Insight needed to recover an electronic file for some reason.
Finally, there's a server at Jim's house that receives a remote backup every evening. That too would be useful in the event Insight's building were damaged or inaccessible for a period of time.
"There is redundant backup after redundant backup," Jim points out. This level of vigilance is vital, especially once Insight goes completely paperless. "If you lost your data, it would be like somebody throwing away all your paper files," he says.
Part of the move to the paperless environment will include Insight encouraging agents to accept quotes via e-mail. "Most of our quotes to agents are sent via e-mail now," Jim explains. "Within the coming year we will strongly encourage all of our producers to accept e-mailed quotes. E-mailing quotes to agents is quicker, adds flexibility to document handling, and is less costly for all parties. The margins in the insurance business are narrow, so we all have to be more efficient."
Since Jim first began developing the Insight system, the focus has been on efficiency in the process. He's managed to automate all of the functions that are important to Insight's success as a professional liability program administrator: rating, submission clearance, statistical record keeping, accounting, regulatory compliance, and licensing. "It's such a competitive environment for internal operating ratios, so it's important that we constantly work to improve our accuracy and not waste time with unnecessary duplication of efforts. The processes are as smooth as possible. We make sure we're part of the solution, not part of the problem." *
For more information:
Insight Insurance Services, Inc.
Web site: www.insightinsurance.com