 |
 |
 |
|
To The Point Oh, what tangled webs the Internet weaves Surfing the Internet can be time well spent By Emanuel Levy Computer technology is an integral part of the insurance business and of transactions between insurers and their brokers and agents. In fact, some companies include a requirement for use of technology by brokers and agents as an element in the calculation of contingent commissions. But, so far as I can determine, most brokers and agents don’t utilize the computer as an informational tool and therefore don’t take advantage of the enormous amount of pertinent knowledge available via the Internet. I base this observation, in part, on information I gathered from the Independent Insurance Agents & Brokers of America (IIABA). Emily Crane, director of media communications for the IIABA, provided me with its 2004 Agency Universe Study of business uses of Internet by members, comparing 2002 and 2004. Obtaining quotes from carriers/Internet-based market access providers rose from 82% in 2002 to 95% in 2004. There were equally impressive numbers for billing inquiries to companies—82% in 2002, rising to 90% in 2003; accessing marketing materials, from 76% to 80%; exchanging documents with carriers, 76% to 85%; and claims inquiries, 73% to 79%. However, this does not cover the use of the Internet by brokers and agents for the purpose of learning about events, new coverages, company changes, insurance department regulations, and legislation nationally and by state, or a variety of other subjects that are essential in understanding the business environment. Such information is available online and one does not have to be a rocket scientist to access it. But my admittedly informal inquiry among a small number of well-informed brokers and agents found the Internet was not being sufficiently used for that purpose. One individual I spoke with is Shelly Kozel of Lezok Ltd. I spoke with him by phone and asked him whether agents and brokers, generally, used the Internet for information purposes. Kozel, a New York City resident and long-time adherent of the use of technology, told me that many producers are reluctant to invest in software management beyond basic needs and are fearful of mastering the Web world. That comports with the IIABA study cited above, which reported that between 2002 and 2004 less than 60% of members had Web sites. As far as news and information access are concerned, Kozel said, many brokers and agents are still afraid to venture on the scene. They contend that they do not have the time or the knowledge to manipulate the computer, adding that they don’t find it necessary. However, he also noted attitudinal differences among younger agents and brokers, who were practically born with a mouse in their hand, and have no reluctance to take advantage of the Internet. But the purpose of this article is to tout the use of the Internet to quickly find data that serves individual needs. For instance, insureds and prospective insureds can access Web sites that provide rate comparisons by insurers, particularly for automobile and homeowners insurance. Generally, they are aggressive direct writers that emphasize sharply reduced rates. To protect their own accounts, brokers and agents should be in a position to know the competition and combat it. It’s a cliché, but nevertheless a fact, that knowledge is power and there is a concentration of it on the Internet. It’s important for brokers and agents to keep updated on industry news, and the Internet provides Web sites that make that feasible without being too time-consuming. For example, Kellie Bray, assistant vice president of Federal Affairs for the National Association of Professional Insurance Agents (PIA National), pointed to the association’s Online Grassroots Action Center. This site is used when a piece of legislation or issue is approaching a critical juncture. At these times action alerts are posted at PIA National’s Online Grassroots Action Center and an e-mail is sent to members either nationally or in specific states/congressional districts. Alerts usually include sample language that can be used in letters and e-mails to help legislators on Capitol Hill understand PIA’s position on issues that are important to independent insurance agents. The IIABA and the PIA, both the nationals and the individual state affiliates, have excellent news stories on all pertinent subjects presented in concise formats on a regular basis. They report on company activities, coverages, state and national legislation and regulation, among other things. Members of the respective associations may print whatever stories they wish to keep for reference. They also have access to a wealth of other information, including press releases. The same is true of other producer organizations as well as insurance companies and service organizations, such as the ISO, The American Association of Insurance Services (AAIS), CPCU, all of the insurance company associations, such as Property Casualty Insurers Association of America (PCI), The National Association of Mutual Insurance Companies (NAMIC) and probably every other association that one chooses to bring to the computer screen. Users can review all of the information offered with the understanding that what appears on the site depends on what the provider chooses to offer. There is no real standard, so some sites are expansive and some are meager. Some information is for members only and includes information that either can’t be viewed in full or, if viewable, may not be downloaded. Some sites offer studies, white papers, and other documents. Despite the occasional limitations, there is a vast amount of information available online; the only caution is that users learn to be selective and precise in choosing, in order to avoid spending too much time and effort. I call special attention to a daily news service that is available free to the industry, but it requires an e-mail address. The “Insurance Newscast” boasts over 350,000 readers so many Rough Notes readers may already be subscribers. But for those who would like this excellent service, visit www.insurancebroadcasting.com, or call (888) 282-1765 for information. Each day, there is a headline list for about 30 significant stories, followed by the full releases. To save time, users who have limited interests, are able to concentrate on those interests. Search engines such as Ask.com, Yahoo or Google make mining this amazing information lode relatively simple. As one uses this remarkable mechanism, there is continuing growth of expertise in its use to obtain the most expeditious fulfillment of individual needs for information. Today’s producers literally have the world at their fingertips. * The author |
|
|||||||||||||
| ||||||||||||||
