Ensuring insurance applications are completed the first time
Here's how agents and brokers can overcome the cat and mouse game of getting applications filled out correctly and completely.
Insurance applications are tricky, especially for commercial clients. Between long lists of questions and the back and forth that can occur when gathering information or making corrections, the application process can be significantly delayed.
It is a scenario Mike Furlong, CEO and co-founder of Indio, a division of Applied Systems that provides insurance application and renewal software to automate the commercial lines submission process, sees often.
According to Indio, agents can get pulled into a cat and mouse game of resharing applications, delaying the time it takes to send the application to the carrier and receive a quote.
To avoid the headache of incomplete applications, Furlong shares with PC360 his tips on how insurance agencies and brokers can get insurance applications correctly and wholly filled out the first time.
PC360: How long does the process take on average for insureds to go from the beginning of an application or renewal to receiving coverage? How much time could be saved by completing the documents in one sitting?
Mike Furlong: The time it takes from start to coverage will vary on the size and complexity of the commercial client’s business. For a smaller, more simplified business, leveraging a technology like Indio that simplifies and accelerates the submission and renewal process for both the agent and the insured could result in saving everyone hours if not days. For a larger, more complex client, we’ve seen the application and renewal process go from six months down to three months, which is an incredible amount of time and resources saved for both parties.
PC360: In addition to saving time, are there any other benefits to incorporating technology into the application and renewal process for P&C insurance?
Furlong: Absolutely. One of the greatest benefits is the improved experience that a broker and agent can deliver to their customers. The insurance application and renewal process has lagged behind other industries in terms of moving off paper and into the digital world. By leveraging smart technology, a broker or agent can begin delivering a user-friendly experience that the customer has become accustomed to across all other aspects of business and their personal lives.
In addition, by having data captured and stored in a standardized and organized manner, it enables brokers and agents to make better recommendations to their clients when cross and upselling. The end result is better protection for their client, improved retention, and additional growth for the agency.
PC360: Do you predict any other types of technologies developing to enhance further and simplify the application and renewal process for P&C insurance? For example, more features with AI or natural language capabilities like chatbots?
Furlong: Carrier connectivity and improved reporting/analytics are areas that we’ll see a lot of advancement in the near future, and we’re very focused on both of these at Indio. As more policy information and data are captured through digital means, the data becomes clean and standardized. As a result, it’s much simpler to analyze that data and to pass that information from one technology to the other. The latter is how and why a real-time connected agency-insurer-insured automated commercial lines submission process will become possible
PC360: What are the risks that exist for the insured if they fail to submit completed forms to their agents correctly?
Furlong: The main risk is that the insured could ultimately end up being inadequately covered. They could be paying for insurance that they don’t need, or their business may be exposed.
This is one of many reasons why agents and brokers are so integral to the insurance process. Their role as a trusted advisor is to ensure they are protected — and technology is there to further support that mission. So, the more tools and technology that are available for agents and brokers to capture policy data in a complete, efficient, and accurate manner, the more likely errors and omissions can be avoided.
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