Copyright © 2001 Business Insurance

Meeting Customer's Needs on the Internet:   Agents, Brokers in Early Stages of Taking Services Online May 7, 2001

by Sally Roberts

Although the technology is still in its early stages, more insurance agents and brokers are beginning to embrace the concept of online customer self-service.

Like their counterparts in the banking and securities worlds, insurance agents and brokers are beginning to offer customers the convenience of accessing their accounts online. By doing so, policyholders can gain access to their personal information and insurance coverages, request changes to policies and download certificates of insurance-all at the click of a mouse.

Agency technology experts say that most major agency management system vendors are either offering ``customer access'' capabilities or are developing such capabilities. At the same time, some third-party vendors are offering customer-access technology that expands on the capabilities offered by system vendors.

Now that the technology is available and security concerns have been addressed, the next hurdle to overcome is the mindset of many agents and brokers, observers say.

Some intermediaries continue to be intimidated by the Internet, while others think that giving customers direct access to services takes away from the value-added services brokers offer.

Agents, however, are beginning to understand that online customer self-service does not replace the services that they offer, but rather that it is an extension of what brokers offer customers.

Self-service ``is a concept that we as human beings have become comfortable with,'' explained Rick Morgan, executive vp of ConfirmNet, a San Diego-based application service provider. ConfirmNet's flagship product, CertificatesNow, allows policyholders to print their own certificates of insurance 24 hours a day. ``What promotes that is the concept of convenience, which is a big issue in all of our lives,'' Mr. Morgan said.

People, he said, are accustomed to banking with automated teller machines, pumping their own gas at gas stations and trading securities on the Internet. ``What has been last to take advantage of this type of technology...has been the insurance industry,'' Mr. Morgan said. ``But that's beginning to change.''

Much of the recent movement on the part of agents and brokers, some vendors say, comes as a result of a study conducted last year by the Independent Insurance Agents of America Inc. That study found that insurance buyers, more than agents were aware, expect this capability from their intermediaries.

According to the survey, when asked how important around-the-clock customer service was in their the insurance-purchasing decisions, 87% of personal lines customers and 70% of commercial lines customers surveyed said that it was ``extremely'' or ``very'' important, while only 34% of the agents responded the same way.

Similarly, 59% of the personal lines customers and 47% of the commercial lines customers surveyed considered online access to account information to be very or extremely important, while only 6% of the agents shared that opinion.

Vendors and some producers say that agents and brokers are beginning to understand the importance of offering customer-access technology to clients, although there still is work to be done toward changing the mindset of many agents.

``When we first introduced the concept in '97, agents were very nervous about it,'' said Ed Olsen, senior vp-sales for AMS Services Inc., an agency systems vendor based in Windsor, Conn.

``Most agents saw quality service as their top function, and they didn't like the idea of passing some of that on to the customer. Now, agents understand that it's a way for them to expand their service offerings to customers,'' Mr. Olsen said. ``It's a technology whose time has come.''

AMS developed and offers ``client access'' capability options with its Sagitta Browser and AFW management systems. Using the systems, an agent can give a policyholder 24-hour access to his or her own account to view, print or add certificates, check balances and coverages, among other features.

``By offering this capability, we are moving routine maintenance activities to the client, freeing up CSRs to handle more difficult questions,'' he said. ``The end result is better customer service for everyone.''

Mark Parrish, president of Ajasent Inc., a West Monroe, La.-based application service provider, said that when he speaks to agents and agent groups about customer self-service, he often gets such responses as: `` `Yeah, but you don't know my customers. My customers are not on the Internet,' '' he said.

``The fact of the matter is, 70 to 80 million people have Internet access. I think that the biggest barrier to this, even though the technology has been developed, is if the agents don't make a mindset change,'' he said.

``The Internet is all about empowering the end-user-allowing them to do what they need to do when they need to do it,'' Mr. Parrish said.

David Schuppler, president of David Schuppler & Associates, a small commercial lines agency based in Wauwatosa, Wis., agrees that agents need to change their attitudes about customer self-service.

``When I talk to agent groups about this, the range of reactions from them is from `Oh my God, this is wonderful,' to `Oh my God, what is this guy talking about?'''

Agents need to get away from trying to understand the intricacies and acronyms of technology and understand that the Internet ``is the most dynamic means of communication,'' Mr. Schuppler said. ``To enhance the connection of your people, this medium needs to be included in your offerings of services,'' he said.

Mr. Schuppler's agency offers its clients access to various customer service items on its Web site. By clicking on the ``insurance customer services'' icon and entering a user name and password, clients can review personal and company information, make changes to that information, review insurance coverages, request changes to policies, file a claim, download a certificate of insurance and find insurance quotes.

``Customer reaction so far has been very, very positive,'' Mr. Schuppler said. ``Clearly, not all customers want to do this, but those that are, they are telling us that it's a `wow,' '' he said.

Diane Roe, a vp at Knight Crockett Miller Insurance Group, said that ``the whole reason'' her agency began offering client access technology to its customers was ``to bring more convenience to our clients.''

The Toledo, Ohio-based agency launched a client service application for its personal lines customers on its Web site at the beginning of April. Ms. Roe said the agency sent out 3,000 brochures to advertise the new service and that, within the first three weeks of its launch, there were 328 visits to the site.

Visitors most often reviewed their coverages or personal information, although nine people e-mailed the agency with changes, she said.

Of the 3,000 customers given login names and passwords, only three called the agency to ask that their information be taken off the site, she said.

``I've been very pleased with the reception,'' Ms. Roe said.

``We view it as an opportunity to bring clients the best of both worlds. And it's also a great prospecting tool,'' she added.

Knight Crockett Miller Insurance offers its clients the CSR-24 product, which was developed by Artizan Computing Inc., a Phoenix-based Internet developer.

CSR-24, which interfaces with most major agency management systems, offers 24-hour customer service via either the agency's Web site or telephone. The technology collects the information needed to make a policy change or to provide a quote and then provides someone at the agency with the information they need to complete the transaction.

``The flood gates are starting to open up,'' said Tim Woods, president of Artizan, referring to interest in this technology.

``For a long time, we were signing on one to two agents a month. We're now signing a couple a day,'' Mr. Woods said.

© Copyright Business Insurance 2001