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T H U R S D A Y , N O V E M B E R 8 , 2 0 0 7
IIABA News | ACT | Big "I" Business Services | Big "I" Professional Liability | Big "I" Markets | InVEST | Industry News |
IIABA NEWS
The Last Call
Only one week left to weigh in on IN&V State News.
There’s only one week left to take the Insurance News & Views State News survey. State News was created to inform states of important, state-specific news and the IN&V staff wants to make sure state members are getting the most out of each edition. Changes to the publication will be made based on reader feedback from the survey and any ideas for improvements, criticisms or suggestions will be taken into consideration. For those who haven’t taken the survey yet, please take a few minutes to improve IN&V State News by clicking here. Send any questions regarding IN&V or the survey to Michelle Payne at michelle.payne@iiaba.net.
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ACT
Get Real (Time)
Drop-in article outlines progress, benefits of Real Time.
Please use the following article in your state publications to emphasize the importance of Real Time to your member agencies:
Taking Real Time to the Next Level
In the six months since the Real Time/Download Campaign launched, Real Time has been a dominant subject of discussion at agency association and user group meetings across the country. Thousands of agencies are already saving significant time with Real Time – cutting in about half (or more) the time it would take to make the inquiry or get the comparative quotes using carrier Web sites. This article focuses on the progress the industry is making with Real Time and provides tips on how we can increase Real Time usage in our agencies and carriers. (See www.getrealtime.org for more information on Real Time and its implementation.)
Industry Progress with Real Time
There is widespread consensus that the campaign has been successful in raising agent interest in and requests for Real Time. One major agency management system vendor recently said his transaction volume was running 30% to 40% over where it had been during fourth quarter of last year and that this volume is trending up 5% to 7% per month. That vendor also said there had been a sharp jump in agent-carrier Real Time communicating pairs. A major national carrier said its Real Time-engaged users had gone up 30% since January and its engaged agencies by 48%. However, that company still finds that in many agencies, only pockets of employees are using Real Time. Another major national company said Real Time feels “like a train about to leave the station” and that there’s increased and growing agent interest, but the heightened interest has yet to be reflected in the numbers.
Three regional carriers recently reported they expect to double the number of their Real Time transactions this year. These companies have had people in the field working individually with their agencies on implementation and some have included agency Real Time usage as part of their employees’ incentives. Others carriers have experienced a big increase in agency usage when they replaced their scripted Real Time inquiry transactions with the ACORD XML standard-based Web services because of the increase in their speed and reliability.
One suburban Pennsylvania agency with seven employees has been able to increase the number of its monthly Real Time transactions from January to August 2007 from 324 to 653 by demonstrating the value of Real Time to each employee and monitoring employee use. One larger, regional agency in New York State is now doing 5,100 Real Time transactions a month.
Tips for More Successful Real Time Implementation
Agencies
• Appoint a Real Time champion who will promote Real Time to other users.
• Demonstrate to non-believer employees the time savings of Real Time compared to going directly to carrier Web sites.
• Run monthly activity reports to monitor individual employee usage of Real Time and provide extra assistance where needed.
• Provide incentives for those employees who use Real Time most often.
• Incorporate Real Time into the agency’s workflows and establish management’s expectation that these workflows be followed.
• Explain to employees that the more they use Real Time, the more carriers will be willing to invest in additional transactions, such as endorsements and quoting.
• Advocate for Real Time with carriers of all sizes at every opportunity. Thank the CEOs of the companies which provide this improved workflow.
• Provide feedback to carriers and vendors when their particular Real Time implementation is slow or ineffective. Like any new technology, Real Time will continue to be refined and agents can help shape these improvements.
• Speed implementation of Real Time quoting applications by setting default settings to reduce data entry.
• Consider moving to centralized password administration, where individual users do not have to manage individual carrier passwords because they can access carrier Web sites through their agency system Real Time functionality.
• Implement Download wherever possible, including for commercial lines and focus on maintaining complete and accurate data. Real Time quoting depends on the agent’s sending complete and accurate data.
Carriers
• Meet regularly with agent users and vendors to get feedback to help refine Real Time implementations. Consider an agency technology committee to provide agency input on priorities and workflows. Log all agency recommended improvements for follow up.
• Promote Real Time continuously with your agents on Web sites, in publications and during marketing representative visits. Consider an agency contest or incentive program for Real Time usage.
• Assist agencies needing help implementing Real Time.
• Move to the use of ACORD XML-based Web services from Real Time scripting transactions for improved speed and reliability.
• Provide the full complement of inquiry transactions so agents can count on more consistency across carriers, along with the various Real Time transactions.
• Review company “uniques” and decide whether they are absolutely necessary to the Real Time Quoting process. Use the ACORD applications wherever possible, including the new residential forms that incorporate several of the commonly found company “uniques.” Make assumptions where possible with the data the agent has submitted to avoid returning error messages and advise agents of the assumptions made in the quote.
• Seek to reduce the number of error messages, but where they do occur always provide an easy-to-understand description for the error and try to provide a link to the carrier Web site so the agent can complete the transaction.
• When providing the Real Time Endorsement Bridge, include the ability for the agent to drill down to make all types of changes (such as in vehicle schedules), to print out all needed customer documents to complete the transaction and to provide an immediate confirmation that can be attached to the agency management system.
Vendors
• Reduce the number of adjustments carriers have to make in their ACORD XML based messages for the system.
• Provide attractive plans for smaller carriers to implement Real Time.
• Regularly meet with agent users and carriers to continue to refine Real Time implementations.
• Continue to provide agencies with Real Time training, both Web-based and in person.
• Promote Real Time continuously with agents on Web sites and in communications. Consider an agency contest or incentive program for Real Time usage.
• Promote use of ACORD XML-based Web services over Real Time scripting transactions for improved speed and reliability.
• Ensure Download functionality is available (i.e., commercial lines, claims download).
ACT and AUGIE, the national and state agents associations and the user groups have a critical role to play in the ongoing promotion of Real Time and in providing a forum to discuss its continued evolution and enhancement. ACORD has an important opportunity to strengthen its certification of ACORD XML standards implementations, so that the Real Time messages sent between carriers and vendors are fully compatible.
Real Time offers a unique opportunity for agents and carriers to work much more efficiently together, to improve the sales process, increase profitability and provide a higher level of service to our customers. The Real Time train has left the station and it is up to each of us to make sure it generates the momentum necessary to reach every part of our distribution system.
Jeff Yates (jeff.yates@iiaba.net) is executive director of the Agents Council for Technology (ACT). For more information on the all industry Real Time/Download Campaign, go to www.getrealtime.org. ACT’s Web site is www.independentagent.com/act. This article reflects the views of the author and should not be construed as an official statement by ACT.
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BIG “I” BUSINESS SERVICES
Building Your InsurBanc Revenue Sharing
As bank grows, so will revenue sharing with states.
The November issue of IA magazine contains a “tombstone advertisement” on page 35. A “tombstone ad” is financial and advertising industry terminology for ads in which particular transactions are highlighted and their resemblance to…tombstones. The good news is there were transactions with member agencies and the state associations where the transactions were paid. Massachusetts, Virginia, Connecticut, New Jersey and Maine will all see the loan activity reflected in their quarterly revenue sharing in the second fiscal quarter. The Big “I” has just received the third calendar payment from InsurBanc (July to September) and it will be paid out during the first calendar quarterly revenue sharing (September to November) sometime in December. Help us grow this line of business and revenue sharing for state associations. Remember, as InsurBanc grows, so will these payments to states. Articles in publications, along with other information are available on the State Marketing Activity Center (SMAC). Please visit the site often as the Big “I” is building a marketing resource that should make states’ jobs much easier with Big “I” Advantage and for-profit products; and materials on other Big “I” programs such as the Virtual University, Invest and Diversity. For questions on InsurBanc, contact Paul Buse at paul.buse@iiaba.net. For questions on SMAC for-profit programs, contact Brett Sutch at brett.sutch@iiaba.net or Elif Wisecup at elif.wisecup@iiaba.net. For information on non-profit programs, contact Susan Bonner at susan.bonner@iiaba.net.
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BIG “I” PROFESSIONAL LIABILITYSM
AJ Wayne and Big “I” Markets Go Hand in Hand
Make sure all account transactions with AJ Wayne are also done on Big ‘I” Markets.
When submitting business to AJ Wayne, such as a quote for FSIC, it is crucial to start the process by entering the account on Big “I” Markets. Simply log into BIM, select Big “I” Agents E&O Special Risk, under Commercial Insurance Products, and click on Request a Quote. The more information that you have, such as retro date, expiring premium, limits deductible and coverage expectations, the better able AJ Wayne is to determine which companies are capable of providing more competitive terms and thereby drastically reducing submission turnaround time. It is equally important to remember to close the account on Big “I” Markets if you do not place the business with AJ Wayne. When you are in the account in BIM, simply click on Cancel Request under Quote Actions. By providing AJ Wayne with any information you may have on who wrote the account and the terms, they can in turn assess the market situation and adjust their strategy to be more effective in the future. The agent’s E&O market is a dynamic place and this information will only help you to be more effective in placing business. If you need help navigating the Big “I” Markets system, contact Michael Welch at michael.welch@iiaba.net.
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BIG “I” PROFESSIONAL LIABILITYSM
Certificates Teleconference Follow-up Sent to States
All state should have received follow-up email.
This week, states should have received a follow-up e-mail regarding the recently certificates teleconference sponsored by Swiss Re. Included in that e-mail was a list of call registrants from each specific state, along with sample language to send to members announcing the posting of a podcast recording of the call on the Big “I” Virtual University. Also included were E&O tips for avoiding claims relating to certificates that were created by the Swiss Re claim team and national staff. The tips are designated to be sent to members who participate in the national program as a value-added risk management service. Any questions about the certificates teleconference follow-up can be directed to David Hulcher at david.hulcher@iiaba.net or Pam Andrews at pam.andrews@iiaba.net.
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BIG “I” PROFESSIONAL LIABILITYSM
A.M. Best Assigns “A+” Rating to Westport/Swiss Re Group
Big “I” policy-writing company turns in a strong third-quarter performance.
On Nov. 5, A.M. Best Co. affirmed the financial strength rating (FSR) of “A+” (superior) to Swiss Re Group and its policy writing company for the Big “I” Professional Liability Program, Westport Insurance Company. A.M. Best affirmed that Swiss RE is maintaining a strong capital position. On the same day, Swiss Re announced continuing strong performance in the third quarter of 2007 based on several years of diligent underwriting. For more information regarding this A.M. Best affirmation, please see the full article in this week’s IN&V Association News.
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BIG “I” PROFESSIONAL LIABILITYSM
Independent Insurance Agents of Virginia Visit
IIVA has tips on balancing E&O solicitations.
Big “I” Professional Liability Underwriter Amanda Hodgson and Big “I” State Marketing Manager Ginny Pierson recently visited with Marie Toney, director of products and services, and Linda Loving, deputy executive director of the Independent Insurance Agents of Virginia (IIAV) at their Richmond, Va. office.
Toney and Loving have balanced the Fireman’s Fund insurance E&O solicitation by selecting four to five specific prospects each month and contacting them 60 days in advance of their expiration. Burr Workman, IIAV’s membership/marketing director, follows up on these letters by visiting the agencies to reinforce the association’s desire to write their E&O and explaining the benefits of the carriers represented by the Big “I” Professional Liability program.
“This process is much more efficient than mailing an abundance of letters each month,” Toney explains. “Otherwise, we wouldn’t have the time to follow-up and quote on each one effectively. Because we have the time to explain the coverage and demonstrate our consultative services to each new applicant, this strategy has resulted in a very strong hit ratio.”
To learn more about this targeted marketing approach, contact Toney at 804-747-9300;mtoney@iiav.com.
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BIG “I” PROFESSIONAL LIABILITYSM
Broker of Record Letter Template Now Available
Letters should be submitted via Big “I” Markets on agency letterhead.
Broker of record letters are now being accepted in most states for the Fireman’s Fund Insurance Agency E&O Program. Whether you are soliciting current Fireman’s Fund insureds or the agency is a new business risk to Fireman’s Fund that has already been cleared for another FFIC distribution channel, click here for the template to use when encountering a broker of record situation. The letter should be submitted via Big “I” Markets on agency letterhead. Details regarding broker of record rules can be found on the Underwriting & Coverage page within the Big “I” Fireman’s Fund Agency E&O product. For more information, contact Amanda Hodgson at amanda.hodgson@iiaba.net.
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BIG “I” PROFESSIONAL LIABILITYSM
Marketing Tip of the Week: Lip Service
IIABA of Arizona finds a lip-smacking way of attracting new members.
In an effort to attract new members to the association, IIAB of Arizona contacts prospective members every six weeks. Non-members routinely receive something from the association, ranging from a letter with a dollar bill attached, a mouse pad listing the Big “I” Markets market access programs or a similar, attention-grabbing item. The latest device: lip balm. “IIAB of Arizona: When it comes to agents we provide more than lip service” is printed on the outside of the lip balm.
“Keeping our name out there is a critical component of this new member drive,” says Joni Fairbrother, vice president of IIAB of Arizona. “In this strong Arizona sun, lip balm is bound to be kept rather than discarded as just another give-away item.”
To learn of this and other successful member campaign strategies, contact Fairbrother at 602-956-1851; Joni@iiabaz.com.
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BIG “I” MARKETSSM
Affluent Markets Make the News
BIM team has a strategy for writing new business with Fireman’s Fund.
Member agents have access to two of the best markets for high end homeowners: Chubb and Fireman’s Fund.
Last week, A.M. Best updated the ratings of The Chubb Corporation by affirming the financial strength rating (FSR) of A++ (Superior) and the issuer credit ratings (ICR) of “aa+” of the Chubb Group of Insurance Companies. Remember that through Big “I” Markets (BIM), members have access to many carriers, all of which are “A” rated or better, so you can market BIM with confidence knowing you are presenting excellent markets to them.
Meanwhile, the BIM team just completed a strategy meeting with Fireman’s Fund (FFIC) to figure out ways to write more business in this soft market. One of the action items was the development of a process where agents can gain access to ChoicePoint so that they can ascertain whether a potential insured’s financial score is acceptable to FFIC before submitting a quote request. This will help improve the hit ratio dramatically as over a third of all FFIC affluent declinations are for an unacceptable financial score.
An additional action item was identifying the top 50 ZIP codes where FFIC is competitive and profitable, but underrepresented. We will be identifying our members in those ZIP codes, cross referencing them with Fireman’s Fund to weed out agencies that have direct appointments with FFIC and then working with states to reach out to members in the target zip codes. The goal is to use Webinars to make agents aware of the FFIC opportunity and train them on FFIC products as well as how to access BIM. Also, we are developing and piloting a member marketing activity center (MMAC) that will help agents identify prospects for products that are offered on BIM and help them market to those prospects. Stay tuned for more details on these exciting developments.
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BIG “I” MARKETSSM
FYI: Big “I” Markets Product Resources
Web site offers a variety of marketing materials.
Did you know that each product on Big “I” Markets has a section where you can go to gain access to marketing materials, policy specimens and other sales aids? After selecting a product on Big “I” Markets, scroll down the left hand side and click on the tab titled “Product Resources.” Check out the vast array of stuff there to help you learn more about a product, and, in many cases, you can download marketing materials to help you get after the business. Here are a few samples of the types of materials you will find in product resources: restaurants, commercial package desirability guide, community banks EPLI highlight sheet.
If you click on one of the links and get an error message, make sure you don’t have your pop-up blocker engaged. In some versions of Microsoft Internet Explorer, you will get some sort of message asking if you want to view the blocked content. You can usually give temporary permission to allow specific files through. If you need assistance, contact Michael Welch at 800-221-7917.
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InVEST
Free Webnairs Available for States
Webinars highlight launching, teaching InVEST program.
At the request of the Virginia Association, InVEST recently offered a free Webinar to 35 industry professionals throughout the Commonwealth of Virginia.
“It was very successful and a great and easy way to help our agents and some of our carrier reps to understand what InVEST is all about,” says Diane Mattis, director of education for Virginia.
Similar Webnairs can be held for any state that requests one. The Webinar topics include: InVEST Liaisons: How to Get Involved; State Associations: How to Launch InVEST in Your State; and Teachers: How to Teach the InVEST Program at Your School.
The InVEST Webinars are a great way to reach a large group of people who are interested in implementing the program. Participants need access to a phone line to take part in the conference call aspect of the presentation and a computer with Internet access. To setup a Webinar, contact Sandra Skipper at 800-221-7917;sandra.skipper@iiaba.net.
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