“We have been intrigued with the idea, but held back because we could not get past the cost,” said Paul Martin, director of education for the Independent Insurance Agents of Texas in Austin, Texas. “We understand it is getting affordable.”

Mr. Martin said another problem is finding the time to experiment and set up a program that would give both the association and its members the ability to find out if it would be a good program to pursue.

“We have to find the right opportunity to test it,” said Mr. Martin. “We dont know if it would be a good result for the members, but I suspect it would be.”

He went on to say that while the association has been approached by some production companies about looking into videoconferencing, there has not been a groundswell of support from the membership.

Ongoing continuing education programs in Alaska have their own challenges, even today. Though a lot of agencies are located in Anchorage, Fairbanks and Juneau, there are pockets of smaller agencies throughout the state manned by one or two people, Ms. Federenko pointed out. When it comes to any programs, it is not easy or convenient for them to leave their offices for a few days to attend classes in the cities, she said.

The cost of travel within the state can also prove to be expensive. In some cases, she observed, it has been more economical for agents to go to Seattle for classes.

However, the cost may not be as great as some believe–it is a question of where one turns to for the answers.

Knowing what to ask for and where an association goes for production can have a dramatic impact on the cost of production, said Sara Hill, production manager for the State University of New York Network in Albany, N.Y. She helped the Independent Insurance Agents Association of New York set up its continuing education class recently. She pointed out that, in New York, the popularity of videoconferencing is growing.

The major advantage, Ms. Hill pointed out, is that videoconferencing allows a consistent message to be distributed to a large group at the same time. When adding the cost of travel to the fee for instructors, videoconferencing can have tremendous cost benefits, she asserted.

The problem, she explained, is that many people are not aware of the different videoconferencing services available and how that can affect the overall price.

“They may not ask the right questions, and people (in production) assume the average person needs more services than they do,” Ms. Hill noted, adding that many who make inquiries do not know the options available.

Depending on the production, prices can range from as little as $1,500 to $45,000 and beyond, she said. Shopping around also helps, Ms. Hill advised. For example, production costs in New York City are substantially more than in Albany, and if associations look outside their major cities, they may discover production facilities at substantially reduced costs.

For those looking for advice on where to start, Ms. Hill advised that they begin with local government agencies and small business organizations who are involved in videoconferencing on a regular basis. Lots of federal agencies also use the system and would be able to provide information.

“It is really, truly a very viable option, and it is up to the production house to meet whatever the needs are of the client,” Ms. Hill declared.

More information about videoconferencing can be obtained by contacting Ms. Hill at [email protected].

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, September 23, 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.