However, the theory of a single-entry system is evolving to straight-through processing in a real-time format. What this means to the agent is entering data once and retrieving real-time information directly from the company mainframe.

In simple terms, by combining the technology already existing in the Web portals of the companies and the agent vendor system via a pipeline of XML, we can and have achieved a real-time solution.

How will this technology save the independent agent? Imagine being able to cut production time on a manufactured product in half. When an agency implements XML standards along with its companies and technology vendor, it can reduce the processing time of quoting, issuance and service by more than half.

In any retail industry cutting the time involved to service will free up time to market, sell and serve customersand to educate staff on selling new products and services. More time to sell means more business for that agency and the companies it represents.

If Agency A has a technology vendor and three companies all using different software to sell and service the client, each CSR probably is keying data a total of four times, and each time they are keying it into a different format.

But in Agency B, there are three companies and a technology vendor all implementing ACORD XML standards working together. Information is keyed in once in only one workflow.

Which agency do you think will survive long-term?

To date there are a handful of companies that have implemented the pipeline of XML to the agent vendor system. The roadblocks I am hearing about from companies have to do with not wanting to have rates compared among them. Independent agents compare rates now and will always do sothat is why we are independent, not captive agents. The company that will grow is the company that has a good, fairly priced product that is easy to do business with and provides good service.

With the implementation of this new standard and workflow, agents will be able to battle the hard market and partner more closely with companies. For survival, one needs alliances. Not all companies and not all agencies will make it through this turn in the economy.

Working together, forming alliances, and implementing the available technology will make some stronger than others. These stronger ones are the agents, companies and vendors who will ride out the storm into smoother waters.

No one has the extra cash flow to pay additional staff to repeat work. Data cannot be planted at the agency and again at the company. We must plant the data at the agency in the vendor system, cultivate it at the company, and return it to the agency for harvest so we can all reap the profit.

Now is the time to work together. Companies, agencies and vendors have to catch the wave of automation and ride it into this market. We are living in a 24/7-service world. When someone calls the agency for a question or quote, they expect it today and now. There is no time for trying to log onto a Web site and retrieve data from a foreign format of information.

When calling for information, customers do not want to be placed on hold so that the CSR can call an 800 number and retrieve it. The only way the independent agent can compete and stand apart in the hard market is by offering service. The hard market has erased the competition of the lowest premium gets the customer. Service is the key to retaining and obtaining new customers.

To provide the best service, agents, companies and vendors must operate in partnership. This will enable all of us to survive the current insurance industry tailspin. The real-time solution that will give us the competitive edge in service is here now. We just have to use it.

Independent agent Jo Ann Litwin ([email protected]) chairs the U.S. Interface Committee of the Applied Systems Client Network (ASCnet), and is president of Orchard Park, N.Y.-based Litwin Castle and Christ Inc.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, August 19, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.