Chapter 8 - Technology and Brokerage Operations Flashcards

1
Q

How is technology beneficial?

A
  1. Enhance Profitability.
    - reduces labour costs.
  2. Client relationships.
    - faster response for the client.
  3. Effectiveness.
    - reduces administrative tasks.
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2
Q

4 criteria for evaluating technology

A
  1. Reporting Capabilities.
  2. Capacity.
  3. Support & Training.
  4. Cost.
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3
Q

3 steps in initial implementation process when new technology is being used.

A
  1. Instruction procedures reviewed.
  2. System reports run to test practicality.
  3. Review of total office operation.
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4
Q

The importance of a contingency plan when new technology is being implemented.

A
  • There will be unexpected issues.
  • System failures could happen.
  • Helps keep morale up.
  • Keeps productivity going.
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5
Q

Advantages of electronic data inferface.

A
  1. Tracks client activities.
  2. Avoids duplication of work.
  3. Lower mail costs.
  4. Better communications.
  5. Permanent record.
  6. Faster turnaround.
  7. Reduced labour cost.
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6
Q

Single-Entry Interface

A
  • Old school.
  • Information entered into computer.
  • Stored for a given period.
  • Batched together before sending to insurance company.
  • AKA Batch-interface, batch-store-forward interface.
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7
Q

2 Advantages of single-entry interface

A
  1. Can send info during non peak times, communication costs reduced.
  2. Faster training times, better productivity.
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8
Q

3 Disadvantages of single-entry interface

A
  1. Long processing times.
  2. High software costs.
  3. Slower corrections of errors.
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9
Q

Interactive Interface

A
  • Direct connection between brokerage and insurance company.
  • Broker’s enter data directly into insurance company’s on-line system.
  • Broker portal.
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10
Q

4 Advantages of interactive interface

A
  1. Requires little additional cost to extend technology farther.
  2. Changes can be made without brokerages updating their system each time.
  3. Access to insurance company’s files means better client service.
  4. Easier to detect E&O issues.
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11
Q

3 Disadvantages to interactive interface.

A
  1. May result in duplicating work.
  2. Requires ongoing training.
  3. Brokerage must maintain separate operating procedures for each company.
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12
Q

What is the primary goal of technology?

A

Enter information once, and perform multiple functions with that information.

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13
Q

What is included in a client’s computer file?

A
  • past quotes
  • active policies
  • cancelled policies
  • accounting information
  • contact activity
  • renewal dates
  • claims information
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14
Q

How do you make your client database effective?

A
  • ensure all client information is in a single file which is accessible to every department.
  • ensure quick access to the information needed.
  • when database is constructed, it’s important to think about who will be using it for what purpose.
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15
Q

Technology Action Plan -Considering purchasing new computer technology.

A
  1. Understanding the needs of your brokerage.
    - using internal tech team or outside consultant.
    - analyze current situation.
    - project the future.
  2. Evaluating Technology.
    - reporting capabilities, capacity, support, cost.
  3. Implementation.
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