AAMGA Presentation Mar15 2009


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AAMGA / ACT / NAPSLO Joint Industry initiative to improve automated interfaces with the vision of realtime and streamlined communication through the use of ACORD standards. Presentation made at 2009 AAMGA Technology Conference.

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AAMGA Presentation Mar15 2009

  2. 2. Retail Agent/E & S Working Group Sponsored By 2
  3. 3. Retail Agent/E & S Working Group Purpose • Improve the electronic exchange of information between Retailers and MGA/ Wholesalers 3
  4. 4. Background & History • How It All Started – 2004-2008 • Substantial progress has been made in implementation of real time interfaces and download in the standard market – May 2008 • ACT – NAPSLO – AAMGA partnered to improve electronic interfaces between retail agent and MGAs and the E&S Market Co-Chairs Selected – Angelyn Treutel – Treutel Insurance – Retail Agent – John Deibler – Scottsdale – E&S Carrier 4
  5. 5. THE PROBLEMS New Business – Current State Retail Agent Issues -Redundant Entry Enter Data -Security (Multiple BOTH Agency Management System Passwords) 1 Supplemental app, request for more info AMS, Applied, GA web site Doris, Other -Supplemental Apps. -Complex Work Flow ACORD app & PDF QUOTE -Lack of Integration at Paper GA Level Email snail Fax mail -Response Time to Retailer 2 QUOTE -Cost Effective Vendor Solutions Wholesale Brokers GA 1 GA 2 GA 3 Etc. Manual data entry into Agency Management System 3 Q u Agency Management System : Epic, Omni, CIS, Other E&S o Carrier Manual data entry into Agency t Manual data entry into rater e 4 Management System 6 Request additional 5 information, Sufficient information to supplemental apps NO YES Rate rate/underwrite ? Paper E-mail snail Fax mail 5
  6. 6. VISION Independent Agent Distribution System Standard Rater Carrier Rater CUSTOMER Retail Agent Agency Mgmt System AUTOMATED INTERFACES REQUEST QUOTE MAKE AN INQUIRY, MGA/GA E&S REQUEST A CHANGE. Wholesaler Carrier DOWNLOAD & SYNCHRONIZE AGENCY & CARRIER & MGA DATA Agency Mgmt System 6
  7. 7. Solution Delivery Process New Business/Submit/Quote Work Flow Co-Chairs - Mike Ardis – NAPSLO and Sharon Emek – CBS Insurance – Retail Agent Chair- Mike Roy – CRC – General Agent Retail Systems & Forms GA Systems Integration Retail System Technical GA System •Review Current State Transmission Integration •Focus on Standards •Review Current •Review Current •Partner with ACORD to develop State State standards for supplemental data •Review Vendor •Identify requirements Products Opportunities •Develop Industry Recommendations •Develop •Develop Recommendations Recommendation Improve Work Flow – Eliminate Redundancies and Bottlenecks Forms & Data Input Transmission Receipt Chairman - Eldon Hunsicker – Noel Insurance – Retail Agent GA Website Content/Functionality •Develop Recommendations for GA websites development •Define Minimum Components and logical progression for implementation •Develop Recommendation and benefit analysis 7
  8. 8. Background & History – August - September 2008 (53 participants) • Conference calls and on-line sessions began • Setup Teams Collaboration site (courtesy of ACORD) – October 2008–ACORD Conference–Fort Lauderdale • First face-to-face meeting of entire group – November 2008 – March 2009 (106 participants) • Conference calls and on-line sessions continue (24 meetings) • Have made substantial progress – Today – March 15, 2009 • Second face-to-face meeting of entire workgroup • Subgroup updates 8
  9. 9. What is Real Time? It’s all about Making the Sale! • Agents – close the deal • MGAs/Carriers – write the business • Customers – realize the value they receive for the money they pay 9
  10. 10. • Real Time is NOT using individual carrier or MGA websites ! Issues -Redundant Data Entry -Security (Multiple Passwords) -Complex Work Flow -Lack of Integration at GA Level -Response Time to Retailer 10
  11. 11. Real Time is Single Entry !! 11
  12. 12. CLICK THE BUTTON!! 12
  16. 16. SELECT POLICY AND HIT ‘GO’. 16
  19. 19. REQUEST LOSS RUNS … 19
  21. 21. REAL TIME FUNCTIONALITY Claim Inquiry Rate Billing Inquiry 1st Notice of Loss Loss Runs Payment Policy Inquiry Endorsement Alerts !!!!
  23. 23. THINGS WE TAKE FOR GRANTED … Hot water is on the ________ side. (How many faucet types are available???) ----------------------------------------------------------------------------------- Lights go on when you press the switch ___. (How many different fixtures are available?) ------------------------------------------------------------------------------------ In the US we drive on the ___________ side of the road. ---------------------------------------------------------------- From an independent agent’s perspective: -Carriers use standardized ACORD Forms - Policy data is downloaded back into the agent systems - Clicking a button in our agency system will return an realtime inquiry 23
  24. 24. LACK OF STANDARDS LEADS TO … + What side of the car is the gas cap on????? + Calculator keypads vs Telephone Keypads + Every cell phone needs a different adapter to charge it!!! 24
  25. 25. RA/MGA/E&S Interface Opportunities • Begin and end in the agency management system • Paperless processing • Online quoting and bridging of data • Online servicing for account, policy, and claims • Standardized communications • Use of ACORD Applications & Supplementals whenever possible 25
  26. 26. Subgroup Presentations 1) Retail Agent Interface 2) General Agent Interface 3) General Agent Websites 26
  27. 27. RETAIL AGENT INTERFACE Sharon Emek and Mike Ardis 27
  28. 28. Retail Agent / E&S Workgroup MISSION: To improve the efficiencies for data interchange among retail agents, managing general agents and wholesale brokers, and the E&S carriers through the electronic exchange of data between all parties. 28
  29. 29. Retail Agent Interface Purpose • To focus on E&S company applications and supplemental forms • To determine the data requirements that are comparable to the current ACORD standards and forms so that the ACORD applications can become the general application across the E&S market • To reduce, streamline, and standardize supplemental applications as much as possible 29
  30. 30. Retail Agent Interface Goal • The overarching goal of the Retail Agent Interface Group is the standardization, to the extent possible, of the applications and data submitted by Retailers to GA’s for E&S Carriers, by encouraging the use of existing ACORD Forms and assisting in the development of supplemental forms when needed. 30
  31. 31. VISION Independent Agent Distribution System Standard Rater Carrier Rater CUSTOMER Retail Agent Agency Mgmt System AUTOMATED INTERFACES REQUEST QUOTE MAKE AN INQUIRY, MGA/GA E&S REQUEST A CHANGE. Wholesaler Carrier DOWNLOAD & SYNCHRONIZE AGENCY & CARRIER & MGA DATA Agency Mgmt System 31
  32. 32. E&S Business Segments E & S business processed in the GA market can be generally categorized into three segments: – Brokerage (No GA binding authority) – Binding Authority (Non-Program) – Binding Authority (Program) 32
  33. 33. Brokerage Segment • This segment defined as “Brokerage” is being handled by a Brokerage department within a GA operation or by a “Wholesale Broker”. • Retailers can submit existing ACORD forms and data to GA’s or Brokers. 33
  34. 34. Binding Authority(Program) • This is the largest business segment for most E & S Carriers/GA’s and is also the most unique. • Need to analyze existing ACORD forms for applicability and standardize as much as possible remaining Supplemental forms. 34
  35. 35. Binding Authority (Non- Program) • P & C business not defined as a “program” can generally be submitted using ACORD forms and data standards. It is estimated that approximately 30% of GA binding authority business fits this segment. – Example: Transportation business done in the E & S Market can be submitted using ACORD forms and data standards. 35
  36. 36. Current Reality • Agent submits application to MGA, most often a carrier specific application • MGA/carrier requires additional information • MGA/ carrier requires supplemental applications – Supplementals vary among carriers – Similar information requested 36
  37. 37. Stop the Madness!!! Company Specific Applications and Supplemental Applications • Additional burden on Retail and General Agents • Not included in Agency Management Systems • Require manual completion and re-keying into systems • Are NOT really ‘unique’ 37
  38. 38. Rating Questions on Supplementals Carrier 1 - Any work performed underground or above 15 feet? Carrier 2 - Any work performed below 12 feet underground? Carrier 3 - Any work performed above 25 feet? Carrier 4 - Any work performed below 10 feet? 38
  39. 39. Benefit of Developing a Standard Carrier 1 - Any work performed underground or above 15 feet? Carrier 2- Any work performed below 12 feet underground? Carrier 3 - Any work performed above 25 feet? Carrier 4 - Any work performed below 10 feet? What is the highest level above ground at which work is performed? What is the lowest level underground at which work is performed? 39
  40. 40. Why Use Standards??? 2008 Insurance Industry Survey by IVANS • Real-time and Download Insurance Transactions Critical for Succeeding in a Down-turned Economy • Critical – improve the ease of doing business 40
  41. 41. Standards are Key WHY USE STANDARDS? • Increase efficiency and lower cost • Create data streams that can be used by all systems – RA, GA, Carrier, Vendor, etc. • Ease of doing business = more sales for all HOW DO WE CREATE STANDARDS? 41
  42. 42. ACORD • ACORD (Association for Cooperative Operations Research and Development) • Global, nonprofit standards development organization serving the insurance industry • Goal of improved data communication across diverse platforms through implementation of standards 42
  43. 43. e video) http://www.acord.org/about/whoar WHO IS ACORD? WHAT ARE ACORD STANDARDS? WHAT IS THE VALUE OF ACORD STANDARDS? 43
  44. 44. RA INTERFACE/ ACORD PARTNERSHIP • RA Interface group will identify areas where industry standards are needed RA Interface group will develop an initial matrix to identify: - ACORD data - Non-ACORD data required for rating - Non-ACORD data required for binding • RA Interface group will turn over matrix information to ACORD 44
  45. 45. Working with ACORD • ACORD will develop proposed format for supplemental applications and/or proposed additions to existing ACORD applications, as appropriate. • ACORD will obtain additional carrier/agent/vendor input, develop appropriate standards and obtain industry approval • ACORD and RA Interface group will work jointly to recruit resources, as needed, for standards development and implementations 45
  46. 46. Areas of Emphasis • Eight specialty programs have been identified to start the development effort. We believe business in these programs is 50% or more of the overall program volume. • Artisan • Apartment • Lessors Risk • Condominium/HO Associations • Alarm Installation • Office • Vacant Building • Small Restaurant/Coffee Shop/Deli 46
  47. 47. Process for Review (See Handouts Provided) • Began with Vacant Building and Apartment Programs • Reviewed existing Program Applications and Developed Matrix of data fields • ACORD forms contained most of the required data fields FORM 125 – General Commercial Insurance Application FORM 140 – Property Application FORM 126 – Commercial General Liability 47
  48. 48. Process for Review • Supplemental Data Analyzed • Split between data “Required for Quoting” vs “Required to Bind” • “Required for Quoting” data fields will facilitate Quick Quoting or providing an Indication • “Required to Bind” will be additional UW data fields for the risk that can be obtained when ready to bind 48
  49. 49. Latest and Greatest • Update on Retail Agent Interface meeting this morning 49
  50. 50. NEXT STEPS YOUR HELP IS NEEDED – CALLING ALL E&S Carriers !! • Adopt ACORD standards to facilitate Industry’s momentum toward Real-time interfaces • Join the RA Interface Team to assist with Initial Matrix Development and for additional program areas • Need Companies to complete their own matrix across all company specific applications • Work with ACORD Team in developing standardized Supplemental Applications 50
  52. 52. GA Interface Purpose: Concentration on data transmission streams from retail agents to general agents, as well as within general agents, and begin to automate the flow of this data as much as possible 52
  53. 53. Charter • Improve workflows and efficiencies in the interaction of agents, MGA/Wholesalers and carriers • With input from all parties, define pain points, particularly surrounding multiple points of data entry and timely access to information. • Engage the vendor community to educate us on capabilities of current solutions and to offer them the opportunity to design future solutions based on our business needs. • Provide a conduit for collaboration and the exchange of information and experiences to further the E&S distribution chain in general. • Be a positive catalyst for change and the adoption of standards. 53
  54. 54. • Adopt the new submission workflow as our business problem in need of enhancement through automation • In depth, technical look at current send technologies to include TransactNow and Transformation station • Search out other solutions that offer reductions in time and keystrokes in the processing of new business submissions 54
  55. 55. • Engage independent agents on educating MGA’s and E&S carriers on their workflows in terms of submission entry and processing. • Allow MGA/Wholesalers to present to agents and E&S carriers system integration and workflow issues that are common in their environment. • Allow E&S carriers to do the same. 55
  56. 56. Vendor Presentations to date • AMS360 – Transact Now • Applied – Transformation Station • Seapass • Appulate • We appreciate their willingness to work together to offer solutions for improving electronic interfaces in the industry 56
  57. 57. AMS360/TransactNow • Data is exported from the AMS management system to TransactNOW which generates ACORD XML. • The agent launches TNOW like they normally do, which pre- populates the data sent from their management system. • Once in TNOW, they have the opportunity to add additional information based on common fields that MGAs & Carriers will need for the submission. They can also attach unstructured data to send with the submission. • Until standardized ACORD forms are developed for ‘Supplemental Data’, another program provides ‘gapping’ logic to obtain appropriate information. The Carrier/MGA can add their own logic rules. 57
  58. 58. AMS TransactNow 58
  59. 59. Applied/Transformation Station • Data from the Agency Management system is transmitted using ACORD XML for Commercial and Personal Lines Policy data. Transformation Station supports real-time Quoting, Bridging, Inquiry, FNOL, etc. • Broker parsing is available for a Broker receiving downloaded data from a carrier, and wants to provide the same data to individual retail agents. • The Broker Download service parses the Brokers daily download from the Carrier into individual agency files and deposits each file into each agency’s IVANS mailbox: • Broker Download service is connected directly (and securely) to the IVANS ECS Mailbox service • All Parsing is done in memory, and no data is stored in the service. • Broker still receives full download message using ACORD AL3 59
  60. 60. Broker Download Module Insurance Company AL3 Applied Systems Broker Download Parsing Service AL3 Parsing IVANS ECS Mailboxes Broker Agent Agent Agent Agent Agent Mailbox MailboxMailboxMailbox Mailbox Mailbox Mailbox Mailbox Mailbox Mailbox Mailbox 60 Broker Agency Agency Agency Agency Agency
  61. 61. SeaPass Supporting Automation when available and creating Automation when it is not • Allow Retail Agent to Export out of Management System • Retail Agent Enters Data for Quoting and then alerts Managing Agent when they are complete • Provide Real-Time Communication with Managing Agent and provide ability to Share forms/attachments • Allow the Managing Agent to interact with Multiple Carrier interfaces simultaneously and forward/email Carrier specific forms automatically • Managing Agent can Post Quote Results within minutes 61 from receiving the information from Retail Agent
  62. 62. 62
  63. 63. Appulate • Virtual Print Driver allows Retail Agents to ‘print’ standard ACORD forms to any destination (that can consume ACORD XML). • Uses ACORD XML standard to send ACORD, Supplemental Data, Loss Data, Endorsements and FNOL • Appulate’s Analytical Insurance Questionnaire Engine (AIQE) is designed to normalize carrier- specific questions to a standard form - thereby removing duplicate questions 63
  64. 64. Carrier Products – Bridge Services™ Agency Products Uplink /Submission Gateway Agency Appulate Appulate User Carrier Server/ Management Uplink/Server Interface Rating System System Supplemental / Loss Data Endorsements / FNOL 64
  65. 65. Latest and Greatest • Update on General Agent Interface meeting this morning 65
  66. 66. NEXT STEPS • YOUR HELP IS NEEDED – CALLING ALL Vendors!! • Engage the vendor community to educate us on capabilities of current solutions and to offer them the opportunity to design future solutions based on our business needs. • Support us in the effort to be a positive catalyst for change and the adoption of standards. 66
  67. 67. GA WEBSITE Eldon Hunsicker 67
  68. 68. GA Website Purpose: Develop a roadmap of recommendations for MGA Web site capabilities 68
  69. 69. 69
  70. 70. Generation 1 • Basic Marketing Information • Examples – contact info, links to appropriate sites, marketing info on appetite 70
  71. 71. Generation 2 • + login capability • + quick quote/indication generator or ability to accept ACORD application data request for quote with a later response from the MGA’s UW department NOTE: Less data should be required to receive an indication. For binding, full ACORD applications, along with pertinent supplementals, will be provided by Retail Agents. 71
  72. 72. Generation 2 (cont.) • + administrative / accounting access (Active policy/account listing/agent activity log/account current/ amount due) + capability to accept endorsement requests and claims reporting 72
  73. 73. Generation 2 (cont.) • In Generation 2, there will be varying degrees of integration and functionality with mostly static data on the GA website, however, the website should position the GA for future development and integration with the MGA/Carrier back-end systems described in Generation 3. 73
  74. 74. Generation 2 (cont.) • Generation 2 still requires significant duplicate data entry by both the RA and GA, and the lack of standardization will create confusion for RAs and GAs, however, this step assists with forward progression into Generation 3. • If possible, Generation 2 and 3 should be developed in parallel. 74
  75. 75. Generation 3 • Generation 3 provides for Straight- Through-Processing from the GA website to the appropriate back-end systems (i.e. raters, carriers, etc) and provides for: + online endorsement processing + view/request/report capability for individual policies/customers + paperless office environment using digital workflows 75
  76. 76. Generation 3 (cont.) • Generation 3 is necessary to build the interface to the GAs backend system(s) and prepares for the future integration with the RA systems in Generation 4. 76
  77. 77. Generation 3 (cont.) • Generation 3 includes capability for bindable quotes, online underwriting and referrals, quote proposals, subjectivity management, bind, bill and policy issuance/endorse/renew capabilities 77
  78. 78. Generation 4 • Generation 4 provides Real-Time, Straight-Through-Processing from the retail agency management systems 78
  79. 79. Generation 4(cont.) • + integration from the RA to GA system using Real Time interfaces “Real time is the ability to click on a button from a client file in the RA agency management system or comparative rater for immediate access to MGA/carrier information on that client. The transaction may be a quote, billing inquiry, claim inquiry/loss runs, policy view, endorsements or a request for information. This approach provides a single workflow for servicing or quoting.” 79
  80. 80. Generation 4 (cont.) • + nightly download of policy and claims data from the GA system to the RA system to complete the round trip of data and synchronize the RA and GA files. 80
  81. 81. Generation 4 (cont.) • Generation 4 allows the RA to transmit data from the agency management system to the GA system, and the data populates fields in the GA website to eliminate the need for redundant data entry by either the RA or GA 81
  82. 82. Benefits • Single, Consistent Workflow for Multiple Carriers saves TIME & MONEY • Enhance PROFESSIONAL Image and Work Environment of your agency • Increase SALES – frees up time to proactively sell 82
  83. 83. Latest and Greatest • Update on General Agent Website meeting this morning 83
  84. 84. NEXT STEPS • YOUR HELP IS NEEDED – CALLING ALL MGAs!! • Obtain feedback to proposed recommendations • Developing ‘business case’ to assist in management justification to technology investment • Publish industry recommendations in May 09 84
  85. 85. GRAND FINALE Angelyn Treutel & John Deibler 85
  86. 86. VISION Independent Agent Distribution System Standard Rater Carrier Rater CUSTOMER Retail Agent Agency Mgmt System AUTOMATED INTERFACES REQUEST QUOTE MAKE AN INQUIRY, MGA/GA E&S REQUEST A CHANGE. Wholesaler Carrier DOWNLOAD & SYNCHRONIZE AGENCY & CARRIER & MGA DATA Agency Mgmt System 86
  87. 87. WHAT NEXT? • Publish industry recommendations to improve the electronic exchange of information between retailers and MGA/Wholesalers • Educate and convince agencies, carriers, and vendors to make the necessary investments in technology on a timely basis • Take advantage of the standards & forms that ACORD has created, and recommend additional standards, as needed • Continue to work together to streamline data requirements, eliminate redundant tasks, and improve work flows • Publicize efforts and successes through AAMGA, ACT and NAPSLO and identify measures to monitor adoption and increase utilization • Define milestones that can be achieved within a 12-18 month time frame 87
  88. 88. CORE MESSAGES • To ensure our long-term viability, as an industry, we must embrace and use ACORD applications and standards: -can be used for brokerage business today -need to focus on other lines that can use existing forms— identify new standards needed -embrace newly developed ACORD standards/apps (example: Specialty Lines recently published) -must begin implementing electronic data exchange TODAY! 88
  89. 89. CORE MESSAGES • Segregate data required to quote and data needed to bind (Can we change our paradigm??? Need to involve Underwriters from E&S Carriers to capture appropriate data.) • We (RA / GA / E&S Carriers) must work together to reduce supplemental non-essential data requests • The resulting data must be homogenized and standardized 89
  90. 90. CORE MESSAGES (cont.) • With standardized data requirements, together (RA / GA / E&S Carriers / Vendors) we will automate the business processes and data flow between RAs, GAs, and E&S Carriers 90
  91. 91. CORE MESSAGES (cont.) • All of us must work toward the VISION of RT interfaces through GA websites from the Retailer systems to the General Agent to the Carrier and download back again using ACORD standards 91
  92. 92. CORE MESSAGES (cont.) - This effort will take ALL of us: +Retail Agents +General Agents +E&S Carriers +Vendors +ACORD * PRE-REGISTERED ON TEAMS • We Need Your Help to Succeed … 92
  93. 93. NOW is the time to accept the challenge ! 93