TransactNow and Transformation Station are technologies that aim to improve the submission workflow between independent agents, MGAs, and E&S carriers. The GA Interface group seeks to adopt this new submission workflow as an area for enhancement through increased automation. They are engaging vendors to understand current capabilities and identify opportunities to further reduce data entry time and improve information access across the distribution chain through standards adoption and system integration. The group also aims to educate each party on workflows to find common pain points and solutions.

1. RETAIL AGENT – E&S MARKET WORKGROUP
KEYNOTE PRESENTATION
MARCH 15, 2009

2. Retail Agent/E & S Working Group
Sponsored By
2

3. Retail Agent/E & S Working Group
Purpose
• Improve the electronic exchange of
information between Retailers and MGA/
Wholesalers
3

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. 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. 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. 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. 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. 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. • 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. Real Time is Single Entry !!
11

12. CLICK THE BUTTON!!
12

13. SELECT RISK TO QUOTE AND WHICH
COMPANIES/MGAs TO TRANSMIT
APPLICATION DATA
13

14. DATA IS BRIDGED TO CARRIER/MGA WEBSITES AND
POPULATES THEIR SYSTEM. ANY ‘UNIQUE’ DATA IS
ABLE TO BE ENTERED AT THIS POINT BY CLICKING THE
SPECIFIC COMPANY. REAL-TIME WILL OPEN TO
THE APPROPRIATE WEBPAGE ON THE CARRIER/MGA
SITE WITHOUT THE NEED TO USE LOGIN/PASSWORD
WHICH IS EMBEDDED IN THE TRANSMISSION.
14

15. INQUIRY EXAMPLE: CLICK THE
BUTTON FROM THE RETAIL AGENT
AGENCY SYSTEM …
15

16. SELECT POLICY AND HIT ‘GO’.
16

17. CARRIER/MGA RETURN
INFORMATION
REQUESTED.
17

18. REQUESTED
DATA CAN
BE
ATTACHED
IN THE
RETAIL
AGENT
SYSTEM
18

19. REQUEST LOSS RUNS …
19

20. REQUESTED REPORT IS PROVIDED
IN SECONDS AND CAN BE
ATTACHED WITHIN RETAIL
AGENT SYSTEM.

21. REAL TIME FUNCTIONALITY
Claim Inquiry Rate
Billing Inquiry 1st Notice of Loss
Loss Runs Payment
Policy Inquiry Endorsement
Alerts !!!!

22. EVERY INDUSTRY HAS
STANDARDS …
22

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. 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. 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. Subgroup Presentations
1) Retail Agent Interface
2) General Agent Interface
3) General Agent Websites
26

27. RETAIL AGENT INTERFACE
Sharon Emek and Mike Ardis
27

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. e video) http://www.acord.org/about/whoar
WHO IS ACORD?
WHAT ARE ACORD STANDARDS?
WHAT IS THE VALUE OF ACORD
STANDARDS?
43

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. 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. 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. 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. 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. Latest and Greatest
• Update on Retail Agent Interface meeting this
morning
49

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

51. GENERAL AGENT INTERFACE
Mike Roy
51

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. 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. • 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. • 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. 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. 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. AMS TransactNow
58

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. 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. 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

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. 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. Latest and Greatest
• Update on General Agent Interface meeting this
morning
65

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. GA WEBSITE
Eldon Hunsicker
67

68. GA Website
Purpose: Develop a roadmap of
recommendations for MGA Web
site capabilities
68

69. 69

70. Generation 1
• Basic Marketing Information
• Examples – contact info, links to
appropriate sites, marketing info on
appetite
70

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. 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. 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. 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. 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. 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. 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. Generation 4
• Generation 4 provides Real-Time,
Straight-Through-Processing from the
retail agency management systems
78

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. 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. 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. 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. Latest and Greatest
• Update on General Agent Website meeting this
morning
83

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. GRAND FINALE
Angelyn Treutel & John Deibler
85

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. 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. 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. 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. 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. 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. 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. NOW
is the time to
accept the challenge !
93