“We hope that the report will convince agents and brokers to get involved in what we consider to be a revolution,” said Jeff Yates, ACT's executive director. “We are not talking about a few applications in this report, but a whole revolution in technology. We need them to get involved and get working on embracing this technology.”

The report defines what “real time” is essentially requesting something electronically from an insurer or managing general agency, such as a quote, a service query or a coverage question, then getting a quick response in kind, which could be an e-mail explanation, a link to the requested information, or the initiation of an online process.

The report goes into detail about how “real time” will impact the future of the industry. Besides urging agents to be proactive, the report identifies the terms, software and vendors involved, as well as describing how it all fits together and benefits agents.

“Implementation by large numbers of the agency force provides a powerful message to the carriers that these workflow improvements are important to agents,” the report said. By implementing real-time technology, carriers benefit by giving agents the opportunity to improve their workflow while freeing the agency and brokerage firm staff “to sell and to provide customers with more highly valued services,” the report added.

The report notes that customers already recognize the benefits of this technology from their “real-time” transactions with non-insurance players in the financial services industry, such as banking, contending that this experience has “changed customer expectations forever.” Clients, the report suggests, are developing the same expectations for the insurance industry.

For agents, there is the time-saving element and improved efficiency or not only to benefit their own bottom line, but also in getting answers for customers more quickly and easily.

The report notes that real time benefits managing general agents as well through the efficiency of having complete ACORD application submissions. The report urges the excess and surplus lines industry to continue its own e-business initiatives that improve efficiency toward real-time transactions.

Carriers reap the benefits of real-time transactions because independent agents and brokers continually look for those companies that embrace ease of doing business. “Once again, building real-time functionalitypositions the carrier as a competitive player over the long term,” according to the report.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, March 12, 2004. Copyright 2004 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.