Shake the data entry blues: Efficiency tips for agents
Market factors and inadequate technology are chipping away at agency profits. Here’s how to get more efficient and forge better relationships with carriers.
Digital transformation, we’re told, will make agents more efficient. But if that’s the case, why do so many agents today feel as if they’re spending more time on data entry and less time building their businesses?
It’s not a new problem. After all, the process of collecting pertinent data — from personal information and property details to coverage limits — has always been an essential part of an agent’s job. But doing so has become even harder lately. As carriers embrace software platforms that streamline their intake processes, a larger burden falls on agents, who must navigate the quirks of multiple systems to find the best quote for their prospective insureds.
The unfortunate reality is that, right now, there is no technological antidote that will make this challenge disappear. But by forging tighter relationships with their carrier partners and by following a few best practices, agents can still find efficiencies and make the intake process more manageable.
The pressing need for efficiency
The current hard market isn’t for the faint of heart. Rising combined ratios, decreasing commissions on personal lines, and inflationary pressures all put enormous strain on both carriers and agencies to move faster. Add in the rising cost of labor in a fiercely competitive hiring market, and it’s clear that agencies can’t succeed if they spend too much time on data entry and too little time on revenue-generating activities.
Much like their carrier partners, agencies are looking toward technology for a solution. But the harsh reality is that no single vendor has created a platform capable of easing the data entry crunch and meeting an agency’s broad-based needs. Agents can’t afford to build their own systems, either.
That leaves most agencies with a patchwork of solutions that creates fragmentation and frustration. Most agencies, for example, already use some sort of agency management system (AMS) and customer relationship management (CRM) database. Many also work with several rating programs and software that digitizes ACORD forms. Then, they also must work with each individual carriers’ systems. Each one has its own unique user interface, questions and processes, and agency staff must become adept with every single one of them.
All of these headaches take valuable time away from agents and their staff. And while emerging technologies like artificial intelligence bring tremendous future potential, agencies need help right now.
The importance of forging tighter carrier relationships
Because technology alone won’t solve today’s data entry issues, the first step forward for agencies is to form more collaborative relationships with their carriers.
Start by understanding your carriers’ appetites. Know the types of risks that they’ll write—and those they won’t. You can begin the conversation by connecting with your local carrier representative and asking them to identify other key contacts in your region. Then, talk with them so you know the types of niches they serve and whether they’ll be a good fit for you and your insureds.
Next, learn which questions each of your preferred carriers will ask during intake and identify any potential efficiencies. You may learn, for example, that some carriers will ask for the same type of data even though they call it by a different name. By discerning which questions you’ll receive every time you talk with a carriers’ underwriters, you’ll speed up the quote process and save your staff time.
Over time, you may even choose to work with carriers that ask for less information at intake than others. For example, some carriers require just two pieces of data—name and address—to quote personal auto and home. From an independent agent perspective, working with this type of carrier can be advantageous because it requires much less effort.
Best practices to improve agency efficiency
While having open and honest communication with your carrier will help you get more efficient, there are also several steps you can take within your agency to maximize your productivity. Best practices to consider:
Choose the right niche: Carriers want to work with agents who provide well-classified information and supply them with good business. The best way for agents to meet their needs is to choose a niche. This will not only allow you to create a better overall experience for your carrier partners, but it will also help you become a trusted advisor to your clients. Plus, once you identify the carriers that write your particular risk well—and understand their data requirements at intake—you’ll start to work smarter, not harder.
Know the available coverages: This is another benefit of choosing a niche. If you work exclusively with contractors, for example, you’ll know which coverages your clients will need right off the bat, whether it’s workers’ comp, commercial auto, cyber, or personal lines. This will help you recommend the best possible coverages and accelerate your business.
Use the best tech that’s available to you: Because no solution is perfect, work with what you have. Leverage your AMS and CRM to the fullest capabilities. Explore other solutions with a “what’s in it for me” mentality. By doing so, you may find that a rating tool like Tarmika or data collection tools like Canopy Connect will save you time. If you deal with more complex submissions, forms solutions like Wunderite, Broker Buddha or Indio may make your life easier.
Rely on your network: If you believe you should be getting more from your current technologies, ask your software vendors to share their expertise. In addition, join a network of independent agents and take advantage of the training and learning sessions they offer. At SIAA, for example, we specialize in providing an array of resources for agencies of all sizes, including in-person meetings where we show agents their fastest path to success.
Know when to ask for help: If you’re an agency principal trying to grow your business, you shouldn’t be spending time on data entry. Decide whether it’s time to add a customer service rep, account rep, or producer to your team. Ask your network partners whether they offer access to virtual assistants who can perform unlicensed tasks and free up your time to find new business.
Look to diversify: The hard market doesn’t have to make life harder for your agency. If you’re struggling to grow in personal lines, consider entering the small commercial market. The more growth opportunities you can identify, the better you’ll prepare your agency for the future.
For agents, the task of data entry isn’t going away anytime soon. But by building stronger carrier relationships, optimizing your current technologies and relying on your network, you can make intake less daunting and gain a competitive edge.
Brendan Mulcahy is vice president, technology and innovations partnerships for SIAA. Mulcahy started his career as a software developer, engineer and consultant. At SIAA, he works with the organization’s strategic partner companies, master agencies and technology companies to identify and understand technology solutions and innovation partnerships that impact SIAA and benefit its national independent agency distribution system. He can be reached at brendan.mulcahy@siaa.com.