A couple of other tools that we've been working with for years recently really took off for us. One is AMS' TransactNOW, which enables us to access carrier information, process endorsements and do some quoting in real time. CSRs find it extremely helpful to have access to that information at their desktops. Our people out in the field also have access to it.

Nester: We have implemented a program that gives our customers real-time online access to their data within our system. Our customers also can self-issue certificates of insurance. It's particularly useful to those businesses that are open when our agencies are not.

We've also enhanced our imaging process. We've put a lot of time, effort and energy into commercial-lines download imaging. We continue to roll out TransactNOW through our agency network. Also, we implemented some telecommuting technology.

Foy: We've implemented TransactNOW as well as SETWrite, AMS' online comparative rating system. We've also put in wireless keyboards, which employees can position in whatever way is most comfortable for them.

Yates: What do you do to develop a culture in your agency that encourages employees to embrace new technology?

Smith: I cannot remember a time in the last 15 years when we haven't been implementing some kind of new technology. Actually, we have a great implementation rate because I think employees know that we're constantly focusing on improving efficiency and the bottom line. We constantly conduct training sessions. Employees have access to individual training needed to implement specific tools, as well as to the four of us in the agency's IT department. The agency just emphasizes the importance of keeping current with technology.

Yates: How do you monitor whether employees are using the technology you have?

Smith: That's done by individual department managers. But we also have detailed, written procedures that are available to everybody online, and they're constantly updated. So when we train new employees, they are trained to the most current technology. Sometimes, our new employees help drive the implementation of new tools. The old employees see them working with something and say, “Wow, that's neat,” and start using it, too.

Nester: In our agency network, which is huge, we have agencies that are more successful and less successful. In the more successful agencies, the managers are pushing the technology down to employees. They understand return on investment and maximize it by encouraging employees to use new technology. They make that part of the culture. If the encouragement comes only from the bottom up, you won't see the return on investment that you're looking for.

Yates: Gray, let's switch to security. What are the most important factors to creating an effective security system?

Nester: First, I would encourage agents to do the simple stuff. Run an antivirus program and get regular virus-definition updates for it. Make sure you have some sort of device that protects your perimeter, as you do more Internet-based business. Make sure you have a properly configured firewall. Hire an expert to create it. Not many people in our business have the expertise to configure their own security devices, and the limitation of what they know is always what they've done. If you have someone on staff who knows how to configure a security device, I still would encourage you to outsource the task. Then encourage your staff person to help test it by trying to penetrate it.

Some agents think the theft of data by outsiders wouldn't be that big a deal. But outsiders would be the least of my worries. I'd be more concerned about employees taking data out of my network. There are some great tools you can use to control data and provide access to it without having it leave your network. I'd encourage agencies to think about what it means for employees to have access to data from remote locations. Without safeguards, a PC in a remote location can be used to print out anything that can be printed at the office. When it comes to security, the most important thing is simply to think about the issue.

Yates: ACT has published the Independents Agents' Guide to Security Issues, which includes a self-assessment checklist and a sample agency security policy. It's available under “Agency Improvement Tools” on the ACT site. Just like Gray said, you have to determine the risks within your own agency and customize your security to your particular workflows and needs.

In the next couple of years, on what will you focus in regard to technology?

Nester: We continue to work on real-time, multi-company interface, and we have to do that in both personal- and commercial lines. We're going to push more services out to our Web site. We'll have real-time disaster recovery capability by Jan. 1. With it, even if our main site is down, our agents won't have to wait eight to 12 hours to conduct business.

Smith: One of my big issues is technology contracts. I think agents need to be more aware of what they're signing and exactly what they are giving up with respect to some of these Web-based tools. They're asked to take on a lot more of the risk in some of those environments. Carriers are requiring agents to sign contracts that say they can take away your access at any time for any reason. This contract is totally separate from the contracts carriers use to appoint agents. These technology contracts have some pretty scary language in them. They should not be signed by a lower-level management person.

Yates: Cindy did a great article for ACT on technology contracts. You can find it under “Monthly Technology Articles” on the ACT Web site: www.independentagent.com/ACT. Another site I want to mention is www.acttech.org. It can tell you what real-time and download capabilities your management system and carriers have. You can enter information and pull up reports. If you have a carrier that doesn't have its information there, encourage them to post it.