Agents To Carriers: Cooperate
By Ara C. Trembly, Technology Editor
NU Online News Service, March 25, 11:24 a.m. EST, Dallas?Newly installed AMS Users' Group President Pam Parry told National Underwriter that carriers "have no excuses any more" for not cooperating to pave the way for single entry transactions between agents and multiple insurers.
In an interview with National Underwriter during the group's 26th national conference held here from March 21 through 24, Ms. Parry said the industry's major user groups are united in their desire for single-entry. "Just look at the market share that represents," she pointed out.
Single-entry technology would allow independent agents to enter information on potential insureds just once into their systems, then send that information to multiple insurers for quotes, rather than having to re-key for each insurer in order to accommodate the carriers' proprietary information systems.
"We're seeing something we have not seen for a long time," she continued. "User groups, vendors and agents are coming together on the SEMCI, once-and-done issue. We're at the dawn of seeing the technology being there and ready to go."
In a development Ms. Parry termed "unprecedented," representatives of rival agency management systems vendor Applied Systems' users group (ASCnet) were present at an AMSUG board meeting held here during the conference. "We're working together on issues that are common to our customers," she noted.
Ms. Parry also pointed to the fact that AMS Services recently licensed the Transformation Station platform from IVANS for transactions done through AMS applications, despite the fact that Transformation Station is an Applied Systems technology and that the licensing benefits AMS' biggest competitor.
"This is huge," said Ms. Parry. "It's a revolution."
Ms. Parry asserted that the agent groups "need to go to the insurance companies en masse customer relationship management is the key," she said. "We are the customers and we represent their customers. The key is for all of us to speak with one voice and [deliver] one message."
She concedes that "there are obviously hurdles" that stand in the way of completing the agents' mission. "I don't think the companies have been talking to the right people about wants and needs," Ms. Parry stated, noting that discussions often take place with agency management personnel who are "not in touch with day-to-day issues in a lot of cases."
Ms. Parry also conceded that agents have been telling companies about the need for single-entry transactions for more than 20 years. She believes, however, that the cooperation of a few insurers will lead to the cooperation of many more.
"If I have six companies, and three of them buy into [single entry], my business is likely to be shifted to the companies that buy in," said Ms. Parry. "Money talks."
Why have insurers been less than speedy in jumping on the single-entry bandwagon? According to Ms. Parry, the fault lies partly with agents.
"I've felt in the past that companies have come to the agent as their distribution point and maybe told us what we need and not asked what we need," Ms. Parry explained. "We have accepted that and it's been a nightmare for us. We need to make changes in order to survive."
Ms. Parry also noted that customers are a driving force behind the need for the more efficient transactions that single entry can bring. In the Internet age, she said, "customers want what they want now. We can't deliver that to our customer base. Our customers aren't going to wait three or four months to get a piece of paper."
And while Ms. Parry admitted that some agents do get some benefits from insurers' proprietary systems, she insists that such systems cannot meet today's customer demands. "I don't care how pretty it is," said Ms. Parry of proprietary systems, "that's not what I want. We are at the start of the ?no excuses' era."
Ms. Parry believes the battle to achieve single entry will be difficult, however, because in the insurance industry "the culture does not promote change. If an insurance company wants to make its mark there is a real opportunity to gain market share by by doing things differently," she asserted. "They need to listten to their customers- agents and insureds. Once the momentum starts, the business will be driven to those companies [that do listen]. Technology will enable this."
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