Analyze This!

We all know how technology has affected every part of our lives, and this thing of ours is certainly no exception. As a matter of fact, think back a few years when we had little to no technology in our offices, and I’m sure you will now say, “How did we ever do without it?”

Recently, the Independent Insurance Agents and Brokers Association released the results of a Best Practices Study regarding the use of technology in the insurance industry, and how the independent agent has benefited from its use. The study, conducted in 2010 by IIABA partner Reagan Consulting, contains a plethora of information reflecting how Best Practices agencies use technology within their business. Selected from 1200 agencies who were nominated, 224 agencies qualified for the survey based upon an analysis of 32 factors—including growth, profitability, balance sheet, etc,. The survey was IIABA’s partner in conducting the study.

The study results are broken down by size of agency and good data is provided on agency management system use, scanning, websites, social media, security, Real Time and download. Jeff Yates; ACT Executive Director, states that “My major take away from reviewing the results was the high level effectiveness/efficiency that agencies using Real Time and Download are deriving. This should be powerful information for carrier and vendor executives to use to support continuing investments in implementing and enhancing these technologies for their agencies.” For the complete results and to learn more about the Best Practices program and the 2010 Best Practices agencies, or to order the complete 2010 study, please visit www.iiaba.net.

IVANS Inc. also conducted a study and their results indicate that the number of independent agents using real-time upload increased 16 percent from 2009 to 2011. In the IVANS’ 2009 Insurance Agents, Carriers & Technology Survey, approximately 36% of agents reported using real-time upload. However, in 2011 this number has increased to 52% as per their most recent survey. In addition, the use of commercial lines download also increased from 42% to 59%, along with claims download which increased from 18% to 30%.

Another item that is absolutely worth mentioning that was derived from the study is that agents seem to trust their carrier partners most of the time, and technology definitely plays a part obtaining in that trust. Out of all of the agents that were queried in the IVANS 2011 Insurance Agents, Carriers & Technology survey, 54% say they trust their carriers “most of the time” and 23 percent trust their carriers “completely.” “This level of trust is reinforced through the steady increase in the use of agency-company interface technology”, the study claims.

Clare DeNicola, President and CEO of IVANS Inc., said, ” Establishing and maintaining trust requires efficient and accessible communication between carriers and agents, and these findings are reflective of the value agents place on being able to communicate easily with their carriers. It is also a testament to the investments that carriers have been making and to the success of industry campaigns such as www.getrealtime.org, which IVANS has been proud to co-sponsor since its inception four years ago.”

However, although the use of upload and download technology has continued to rise, 60% of agents surveyed said that the main reason why that are still not interfacing with their carriers via real-time, or using commercial lines download, is because many carriers are still not offering it.

Ms. DeNicola said, “Good communication is a two-way street, and agents need to proactively seek information for their own benefit and work with carriers that are implementing interface solutions to keep up with consumer demands for quicker service and faster quotes,” She goes on to say. “If certain carriers aren’t offering this technology or agents have it but aren’t using it, now is the time to get engaged and find out why.”

Some other interesting information resulting from the IVANS survey shows that 43% of agents believe that online “customers shopping around more for quotes” poses a new threat for agents while 19 percent said “increased Internet sales on carrier Web sites” was their largest nemesis.

The IVANS’ survey says that “these threats illustrate the need for increased workflow automation, so agents can respond to customers faster, add more value to the sales cycle, and leverage up-selling and cross-selling opportunities.”

Interestingly enough, the IVANS survey shows that 38% of agents do not employ any means of social media, and have no plans to do so in the near future. It also indicates that only 14 percent are currently using social media to provide enhanced customer service to what it is that they are already providing. Agents also clearly indicated via the survey that although most do have an interest in “social networking”, however a “lack of resources and clear strategic objectives” prohibited many agencies from taking full advantage of the benefits of these types of mediums.

“Consumers remain hungry for being able to access data anytime, anywhere, and emerging technologies, such as social networking and mobile applications, have only increased their expectations and made customer service more transparent. Ms. DeNicola said, “To stay ahead, carriers and agents must leverage technologies that enable them to communicate effectively with one another, or the customer will pass them by.”

The IVANS Inc. survey was conducted electronically from April 29, 2011 to May 5, 2011, and the results represent responses from 515 independent agents from across the United States. Source: IVANS Inc.

On the convention front, The Capitol District (of NY) Insurance Community held their annual Albany I Day conference on May 4th at the Marriott Hotel inAlbany, NY. The Albany I-Day members include The Albany Field Club, Albany Claims Association, Insurance Professionals of Albany, Northeastern New York Chapter of the Society of CPCU, Independent Insurance Agents of the Capital Region, and Professional Insurance Agents of New York. There were a total of 325 attendees, including 41 carrier representatives, 35 exhibitors, with 45 agencies represented. Continuing education courses discussed areas such as “Privacy Protection Laws & Being Savy About Cyber Security” presented by Dee Macheda, and “Arson and the Insurance Contract” presented by R. Bryan Tilden; while the luncheon speakers included Neil Golub, President & CEO Of Price Chopper Supermarkets, along with NY State Senator James L. Seward, who is the Chairman of the Senate Standing Committee on Insurance. Great job as always Albany I Day committee members: Eric Anderson Amica Insurance Company; Fran Bartlett, Rose & Kiernan; Jules Desjardins, Servpro of southern Saratoga; Andrew Kaufman, Aurora Inc.; Margaret Paris, Farm Family Casualty; Karen Peters, Rose & Kiernan; Tom Reddy (“long time no see”, Tom!), Reddy Brothers Insurance; John Roessner, State Farm Insurance; Laura Santo, Amica Insurance; Ed Smitkin (thanks, Ed!), New York Central; John Strizzi, Hanover Insurance; and Carol Zembruski of Glass America. See you next year!

One more thing (said Lt. Colombo), please remember that hurricane season is now upon us (June 1st thru November 20th) so while you are reminding your clients to gather up all of the items that they should have easily accessible in the event of a hurricane watch (don’t wait until a hurricane warning is issued, make certain you have the items now), take this opportunity to check and see if you and your family have everything that YOU need in the event of a hurricane, and that everyone knows where these items are kept and what to do in the event a hurricane does come our way. What’s that old saying, “A shoemaker’s kids always go barefoot”… or something like that!

Well, until next time when we’ll be talking about the NY and NJ PIA conference in Atlantic City, along with a few other conferences, “Ciao for now!”