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12 Cards in this Set
- Front
- Back
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Three objectives of Brokerage Technology
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a. Enhance Profitability - by reducing labour costs as a percentage of the total revenue/business written. It can be completed by reducing the number of employees required to maintain production or improving the ability of the existing brokers to generate revenue.
b. Build Client Relationships - because the brokerage can market the account quicker therefore generating a faster response to clients. c. Improve effectiveness - by reducing administration tasks, standardizing procedures which in turn reduce E&O claims. |
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7 Facts that can easily be retrieved from clients files
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1) Past quotes
2) Current active files 3) Closed files 4) Accounting Info 5) Client Contact Activity 6) Abeyance Process 7) Renewal Dates (additional: claim info, business analysis info, sales management reports) |
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Why is it important to involve employees when developing databases?
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Because the database depends on the accuracy of the entries made. Employees must know which info is necessary and how it should be entered in order for the database to reach it's potential.
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Explain how technology supports:
1) Product Management 2) Accounting 3) Administration 4) Communications 5) Training 6) Service and Support |
1) Helps support process of issuing quotes, proposals for new business, policy changes and renewals. Allows communication between brokerage and insurers and insurance information.
2) Helps support all new business, endorsements, renewals, audit transactions. Provides complete accounting services such as general ledger, AR and tracking of direct bill business. 3) Providing support brokerage needs including word processing, spreadsheets, mail list functions, and client database. 4) Technology supports communication by integrating email, fax, telephone, and call center operation. 5) Providing help files within most automated programs. 6) Help desk availability and remote connections to brokerage system to assist in problem solving. |
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Describe what brokerages should consider when planning technology investments.
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Brokerages need to understand current needs for technology solution. This means involving all stakeholders (clients/staff) to ensure technology will match the needs of all stakeholders and meet needs of brokerages strategic plan.
Brokerages need to project the future needs of their organization. Using a strategic plan, brokerages should know whether the current technology will meet the future needs of the brokerage and if not, what changes will be required. |
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Identify 4 criteria to consider when evaluating technology solutions
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1) Reporting capabilities
2) Capacity 3) Support and training 4) Cost |
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Why must all employees be involved when implementing technology solutions?
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There will be frustrations and upset of normal office routines. Transition to new systems will challenge staff and management so having everyone involved allows for effective solutions and support.
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What is a contingency plan and why is developing one so important when implementing technology solutions?
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Contingency plan and alternate arrangements should be available when new systems do not perform as expected. Implementation will not always go as planned. It is important for brokerages to develop contingency plans for inevitable problems. Maintaining productivity and moral is critical during this stressful time.
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Explain Maximization and it's importance.
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Is using brokerage technology to it's fullest capacity. Technology solutions are large investments of financial and human resource. Underutilizing technology reduces effectiveness of investment and wastes valuable resources. After a full year, technology should be a trusted management tool.
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Explain what is meant by brokerage/insurance company interface.
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Interface is exchanging information electronically between insurers and brokerages.
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Explain how single entry interface communications and provide 2 advantages and disadvantages.
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Information is entered in a brokerage's system during the day. Then this information is batched by insurer category at the end of the work day and batches are sent to the insurers in the evening.
Advantages include lower communication costs when transmitting date in off peak hours and training time is reduced as all insurer and brokerage functions are standardized. Disadvantages include a delayed response to transactions and this lengthens the time needed to correct errors. |
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Explain how an interactive interface is achieved between brokerages and insurers and provide 2 advantages and disadvantages
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Interactive interface is when the brokerage is entering the requested info directly into the insurance company's online system.
Advantage: Little additional investment in software and the insurance company is free to make changes/updates. Disadvantage: Duplicate entry may still be required. Ongoing training is required because the insurance company is free to make changes. |
