Chapter 8 - Technology and Brokerage Operations Flashcards
How is technology beneficial?
- Enhance Profitability.
- reduces labour costs. - Client relationships.
- faster response for the client. - Effectiveness.
- reduces administrative tasks.
4 criteria for evaluating technology
- Reporting Capabilities.
- Capacity.
- Support & Training.
- Cost.
3 steps in initial implementation process when new technology is being used.
- Instruction procedures reviewed.
- System reports run to test practicality.
- Review of total office operation.
The importance of a contingency plan when new technology is being implemented.
- There will be unexpected issues.
- System failures could happen.
- Helps keep morale up.
- Keeps productivity going.
Advantages of electronic data inferface.
- Tracks client activities.
- Avoids duplication of work.
- Lower mail costs.
- Better communications.
- Permanent record.
- Faster turnaround.
- Reduced labour cost.
Single-Entry Interface
- 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.
2 Advantages of single-entry interface
- Can send info during non peak times, communication costs reduced.
- Faster training times, better productivity.
3 Disadvantages of single-entry interface
- Long processing times.
- High software costs.
- Slower corrections of errors.
Interactive Interface
- Direct connection between brokerage and insurance company.
- Broker’s enter data directly into insurance company’s on-line system.
- Broker portal.
4 Advantages of interactive interface
- Requires little additional cost to extend technology farther.
- Changes can be made without brokerages updating their system each time.
- Access to insurance company’s files means better client service.
- Easier to detect E&O issues.
3 Disadvantages to interactive interface.
- May result in duplicating work.
- Requires ongoing training.
- Brokerage must maintain separate operating procedures for each company.
What is the primary goal of technology?
Enter information once, and perform multiple functions with that information.
What is included in a client’s computer file?
- past quotes
- active policies
- cancelled policies
- accounting information
- contact activity
- renewal dates
- claims information
How do you make your client database effective?
- 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.
Technology Action Plan -Considering purchasing new computer technology.
- Understanding the needs of your brokerage.
- using internal tech team or outside consultant.
- analyze current situation.
- project the future. - Evaluating Technology.
- reporting capabilities, capacity, support, cost. - Implementation.