VPNs Boost Customer Care

In the insurance industry, customer service is synonymous with success. In the current economic climate, insurers are focused on customer satisfaction and loyalty more than ever. But, delivering consistent and quality customer care is no small challenge. Companies need “anytime, anywhere” access in order to deliver quality service. One technology that is helping the insurance industry extend its connections is the virtual private network (VPN).

Virtual private networks are getting a great deal of attention, but what exactly are they? A VPN provides a secure way for people to access their corporate network using a shared infrastructure (i.e. the Internet). They offer the same functionality as a private network, but use various methods to secure data so third parties cannot see the information being sent over the network. Primarily cost-driven, there is a worldwide trend for businesses to move from dedicated lines and private networks to Internet VPNs, and these are among the reasons:

Cost savings. By implementing VPN technology, employees working in remote locations no longer have to make a long distance call to dial directly into the company network. With a VPN, in many cases, the employee can make a local phone call to the service provider’s “point-of-presence” (POP), and depending on the number of remote workers in a company, this can represent substantial savings. VPNs also offer operational cost savings. For companies that do not have the resources to manage their own network or VPN, outsourcing is a viable alternative.

Integrating business partners. By using VPN technology to create an “extranet”, insurers can use access control and authentication services to provide customers and business partners with access to their network, facilitating a secure environment for transacting business. This helps to streamline business processes resulting in increased productivity. And, because VPNs allow for extranets, insurers can provide a value-added service for customers. For example, imagine the adjuster who has been hired by an insurer to conduct an on-site property damage assessment. He/she needs to verify some pertinent information with the insurer before proceeding. Instead of having to contact the insurer representative, the person can dial up and securely connect to the insurer’s extranet, retrieve the required information and carry on with the evaluation.

Remote access. Perhaps the most significant benefit of using VPN technology is the ability to gain access to vital resources from anywhere in the world. For many companies, providing wide area network (WAN) services, or remote access services, on a global scale is challenging. VPNs deliver that functionality cost effectively. VPN technology enables employees to dial up and access information from the corporate network, whether from the customer’s kitchen table or a table in the local doughnut shop. VPNs allow customer service representatives to respond more quickly to requests for proposals, customer queries and quotes and make “snow days” a thing of the past.

Reducing branch-to-branch connections. Ten years ago, the definition of branch-office connectivity meant picking up the phone or sending a fax. For the more technologically advanced, it meant connecting to corporate headquarters through the corporate network via dial-up, leased lines, “frame relay”, or “X.25”. While some of these options are still common, the landscape for branch-office connectivity is changing thanks to the growth in Internet usage and the variety of Internet applications demanding higher bandwidths. VPNs eliminate the need for a dedicated link or leased line between remote offices and company headquarters. Instead of sending all traffic through head-office, VPNs allow companies to split traffic and send it directly according to the type of traffic in question.

There is no doubt that network security is a critical issue for any company doing business today. For the insurance industry, the stakes are even higher. Insurers are in the “trust” business, so they are especially aware of the security dangers. With highly sensitive information flowing through their networks, safeguarding that information is of the utmost importance.

VPNs offer a secure and trusted environment by encrypting data before sending it through the public network and decrypting it at the receiving end, protecting traffic from hackers, viruses and other security threats. An additional level of security involves encrypting not only data, but also the originating and receiving network addresses. Finding new ways to improve customer service is a top priority for insurance companies. One of the key factors to achieve superior customer service is communications.

The Wired World welcomes your feedback. Contact us, via E-mail at vikki@canadianunderwriter.ca