Annual Automation & Technology Conference
focuses on trends and solutions
A record number of MGA chief information technology officers, IT specialists, and principals; system providers; carriers; suppliers; and vendors attended the AAMGA's 2004 Annual Insurance Automation & Technology Conference, held in March in New Orleans. Conference Co-chairs Kevin Tromer and Matthew Letson worked with the Automation Committee to develop sessions that provide technology-based subjects for attendees from the IT side of business, as well as sessions with more of a business focus that appeal to principals. Among the topics on this year's agenda were sessions on data interface, data quality and standards, system security and protection, as well as new system and software implementation.
Additionally, the Conference brought together more than 40 service providers whose products and services can fulfill the technology needs of MGAs by streamlining business processes, improving underwriting results, and increasing productivity.
The Conference opened with a panel discussion on the advantages and implementation of data interfacing and how to achieve uniformity in electronic data exchange. Panel members included Bruce Fiori, 2nd vice president agent/field automation for Travelers Property Casualty; Jeff Yates, executive director of the IIABA's Agents Council for Technology (ACT); and Tap Johnson, III, president of TAPCO Underwriters, Burlington, North Carolina. Panel moderator Ed Levy, Delaware Valley Underwriting Agency, Hatboro, Pennsylvania, opened the discussion by noting that carriers are interested more than ever in general agencies that can deliver information electronically. Both Fiori and Yates spoke about the efficiencies being enjoyed by retail agencies that have embraced nonproprietary interface solutions such as Transformation Station, available through IVANS. Fiori emphasized, though, that important groundwork must be in place before a nonproprietary solution can be implemented. That groundwork includes the implementation of standards.
That said, Tap Johnson urged audience members to adopt an "electronic vision" and to tailor it to the individual organization. "It's your vision, your roadmap, your future," he said. He explained that TAPCO's technology vision makes it possible for his independent, family-owned, largely commercial lines MGA to operate with a zero backlog--while managing some 6,000 calls a day in the organization's call center and issuing an average of 700 policies a day. "TAPCO will issue over 165,000 insurance policies this year," he predicted.
He noted that this level of efficiency is possible thanks to "an army of highly skilled experts; experts that you give instructions to once, and they're happy to repeat those instructions to infinity, or until you instruct them to do something else." The army Johnson was referring to was the electrons in his computers. "All we need to harness this army of workers' incredible strength is a database, a few electronic standards for storing our images and files, a game plan, and a little bit of code," he explained.
Although TAPCO's technology vision is unique to the organization, Johnson said he's involved with the London Data Standards Project. At the risk of oversimplifying, the London Data Standards Project seeks to streamline the process of Lloyd's gathering information about exposures and risks. Adopting standards--a set of rules and guidelines--is essential to that effort. With full implementation of those standards still a ways off, Johnson suggested that organizations do what they can electronically. "There are carriers that invite electronic transactions," he said.
Yates added that just as carriers look for wholesalers that can transmit data electronically, thus streamlining the transaction, retail agents also consider the ease of doing business when selecting an MGA. MGAs that adopt standards are building a foundation that is essential for improved productivity. He referred to a white paper recently released by ACT titled The Real-Time Revolution: Redefining How We Work, which examines an important byproduct of standards when coupled with the Internet: real-time transactions. To get to the place where real-time transactions are possible, though, MGAs first need to use ACORD standards and accept ACORD applications whenever possible. This will facilitate electronic transmission of applications, meaning that MGAs will receive complete, legible submissions. Yates noted that in many instances, company-unique applications or supplements are handwritten. Interpreting handwritten information often results in errors, which requires additional handling.
ACORD, which has been developing standards for insurance, reinsurance, and related financial services industries for over 30 years, is spearheading efforts to provide improved standards implementation to the wholesale marketplace. "Vendors build solutions that adhere to standards," Yates noted, "so adhere to standards. Support ACORD and its efforts to define and develop standards." Some solutions, he reiterated, are already available on the retail side, which will reduce the need for MGAs and wholesalers to "reinvent the wheel" when evaluating electronic solutions.
Panel moderator Levy asked how many carriers in the audience were receiving business electronically from MGAs. Answers varied widely--from about 5% for one carrier to as much as 40% for another. The consensus was that carriers have to be flexible, providing as many avenues for contact as possible, noting that some of the work already done can serve as the foundation for the next generation of communication.
The subject of standards was discussed in more detail in a session that featured comments by MGA Wayne Forest, Forest Insurance Facilities, Inc., Metairie, Louisiana; and Benita Gayton, program manager, commercial and specialty lines with ACORD. Based in London, Gayton explained some of the common data elements and guidelines that are being developed as part of the ACORD global data standards. About 25% of those attending the session were already utilizing surplus lines binding standards--part of the London Data Standards Project. Forest acknowledged that he didn't embrace the idea of standards initially but has since become a fan of the efficiencies the standards provide--especially getting more complete, legible applications from retailers.
According to Conference Co-chair Kevin Tromer, one of the unique features of the Conference is the opportunity for exhibitors to demonstrate their products or explain their services in a showcase presentation. Showcase exhibitors are provided 45 minutes for this purpose in a small group setting, away from the buzz of the exhibit area, to provide an overview of their product and address the interests and concerns of those attending the showcase. At this year's conference, 24 vendors offered showcase presentations. Among the solutions featured were document management/imaging, agency management systems, policy processing systems, premium finance software, claims management programs, and IT outsourcing.
Next year, Tromer says, the Automation and Technology Conference will be combined with a University Weekend in early March. *