Creating & Managing a Small Commercial Department

1. Creating & Managing aSmall Commercial Department By Steve AndersonThe Anderson Network, Inc.

2. Your Agency?

3. Keys to Successful Management • Pick the right accounts • Pick the right people • Complete automation • Streamlined procedures • Aggressive lead generation

4. Why be concerned? • Retention • Customer loyalty • Lifetime value • Unique advantage

5. Customer Relationship Management “We are entering an era of customer-centric business where the goal of the companies is to develop the customer relationship, not just service it.” Centrobe

8. Select Right Accounts • Size • Standard market • Automated quoting • Upload/Download • Direct bill • Direct claims reporting

9. Productivity • Revenue / CSR • Average: $100 to 150k • Best: $200 to 250k • Producer New Business • Average: $30k • Best: $60 to 100k

10. The New CSR • Willing to sell/ask for referrals • Enjoys automation • Bonus compensation • Open to change

11. Automation • Document management • Headsets • Rotational servicing • Automated procedures • Electronic non-standard forms • Transactions handled first call

12. The Paperless Office — Myth or Reality • Why would you want a paperless office • To save time • Quickly find information • Lower cost for storage • Increase desk time

13. Key System Requirements • Does not add to agency overhead • Easy and quick document retrieval • Fits into current agency work flows

14. Key Questions • When do you scan? • Who does the scanning? • Where is the image stored?

15. When do you scan? • When the mail comes in • At the desktop • After the work is completed

16. Who does the scanning? • Receptionist • CSR at the desktop • Scanner Person

17. Where is the image stored? • Attached to Client file • Separate image database • Network folder

18. Document Management Software • CBDScan (www.cbdi.com) • LCS Image Edition (www.lcsconsulting.com) • Lumtron (www.lumtron.com) • Apres Systems (www.etfile.com) • DocStar (www.docstar.com) • PaperPort (www.scansoft.com)

19. Hardware issues • Scanner • Hard disk storage • Individual workstations • 17" or larger monitor Dual monitors

21. Dual Monitors

24. PaperPort • Print to “desktop” • Combine different documents

25. Forms Processing • Scan existing blank form • Software converts form to fill out • Creates a database of form fields • Allows you to stop using that last typewriter

26. OmniForm Allows you to create electronic forms from existing paper forms www.scansoft.com

27. Streamlining Procedures • On contact service • Screen leads • Redirect undesirable prospects • Limit remarketing

28. Making it work • Flag client files • Route calls to center • Maintain policy detail via download • Discontinue all in-house transactions

29. Rethinking • How we price the products we deliver • What the coverage we include • How we deliver our product

30. Service options • Service centers • Company based • Agency based • Agency Service centers • Rotational servicing • Web based servicing

31. Client Service Center • Improve productivity • Improve profitability • Reduce expenses • Use resources for sales • Cross-selling, Lead generation

32. Facilitating the Transition • Flag on client screen • Route calls directly to service center • Don’t do any transactions in agency • Maintain policy detail using download

33. Download is happening

34. Download Definition Download is the process of extracting business data from a carrier’s data base, formatting it into ACORD standards, and electronically transmitting that data to an agency for merging into the agency management system database. Download is an electronic transfer of insurance business data between computers.

35. Download Problems • Not all, or not enough, data is provided in download • Data is truncated and “overflow” data goes into “notepad” or “remarks.” • Agency data is not protected. • Vendors and carriers don’t upgrade systems and versions quickly enough. • Carriers handle the data inconsistently.

36. Problems Continued • Vendors handle the data inconsistently. • Not all commercial policies are suited for download, but it’s all or nothing in most cases today. • No entry into agency management system transaction/activity log. • Agents need to educate themselves and prepare for download.

37. Real-Time • Started with AUGIE Mandate • First Steps • Billing Inquiry • Claims Inquiry • Policy Inquiry • Progress

38. Transformation Station October 2002 100 agents 8 carriers December 2003 3,000 agents 30 carriers TransactNOW March 2003 8 Carriers December 2003 2,200 agents 24 Carriers Real-Time Progress

39. SIS – Web Link DORIS – Bridge-IT Ebix Inquiry Applied – Web Bridge Nexsure eServices Other Options

40. The Internet… is simply a communication system that allows anyone, anywhere, anytime to communicate with someone else in a standard format so that both parties can understand each other.

41. Finding new markets • MarketScout.com • SuperiorAccess.com • ProgramBusiness.com • AgentSecure.com • InsuranceNoodle.com

46. Application Service Provider Lets you throw yourcomputer systemout the door.

47. ASP Advantages • Focus on core business • Reliable computing • Predictable costs • Capital expenses reduced • Challenges deploying products • Skills retraining

48. ASP Disadvantage • Data not in agent’s office • Always on Internet connection

49. Examples • AMS 360 • AfW Online • Sagitta Online • Applied TAMCentral • EbixASP • DORIS Fileserver • NexSure

50. Electronic Submission • Agency Based • PaperPort • Web Based • AvantAgent.com • RiskClick.com • CBD Document Center (www.cbdi.com)