CSIO portal update: Focus on Critical Mass

T he impetus for those early discussions did not come solely from the obvious strengths of Internet based technology, but also from the fear that a good technology implemented poorly could do more harm than good. And, we didn’t have to look too far to see the dangers that might result.

Insurers in the U.S. had already started implementing Internet web strategies for independent agencies with little thought to a common industry approach or to single entry for the agent. The result was predicable in that a whole new set of inefficiencies were introduced with very little hope of reversing that direction. Through the CSIO, brokers and insurers looked at a common approach with the resolve to develop an effective on-line solution right the first time.

From that modest beginning, it became evident that success depended on achieving critical mass support. The steps taken by the CSIO were:

Design the portal in such a manner that critical mass support and participation from brokers, vendors and insurers is possible;

Build the portal to that design without compromising the key critical mass design elements in the process. This is not as straightforward as it seems in that most development projects are necessarily peppered with compromises during development;

Accomplish insurer critical mass on the portal. This means that a majority of insurer premium must ultimately be represented on the comparative quoting service;

Accomplish broker critical mass in subscriptions to the portal. Gaining insurer critical mass and broad broker support are the keys to success here;

A well planned rollout of the portal and related services to brokers across Canada.

THE PORTAL BUILD

The industry, together with system developers IBM and DWL, worked closely in taking the concept of the portal from the drawing-board to a working solution. It has been a learning experience for all, with a number of surprises along the way.

One such surprise came as a result of broker involvement in the design of the CQS screens and work flows. We had set up broker focus groups across Canada to ensure that these crucial designs hit the mark from a point-of-sale perspective. That exercise took longer and cost more than we had expected but resulted in a CQS design that has truly been customized for the user. Too many systems have been developed in a void with little or no user feedback, only to fail miserably after the fact. The CSIO’s portal’s development is now complete with the exception of some minor clean up activities. It is now going through a variety of different tests leading to its rollout this summer.

INSURER CRITICAL MASS

We have known from the beginning that a critical mass of insurers utilizing the portal was crucial to success. This is not just an issue of whether insurers support the portal philosophically or financially. The real issue is not if, but when. If critical mass integration takes years, then it will be years before the quoting service becomes useful to brokers. If that happens, the portal will likely fail.

Every insurer has a different set of industry issues to deal with. Competing internal priorities, legacy batch systems, mergers, tightening IT budgets, web development and others all go into that timing decision of when an individual insurer can integrate with the portal. Our answer to the timing problem was simple. Insurers could engage a third-party “application service provider” (ASP) to generate quotes for the portal on its behalf. In the meantime, that insurer could continue with its integration plans within the constraints mentioned above. The ASP solution, being independent of insurer technology and schedules, could help the portal gain a critical mass of insurer rates sooner rather than later.

In May, CSIO announced that it had reached an agreement with Insurance Systems Inc. to supply rating services to its members. Insurers will now be able to take advantage of an affordable and timely rating service and have their rates displayed on the portal sooner than otherwise would have been. Interest in this interim solution is high, and it now seems that a critical mass of insurer rates on the portal is assured.

BROKER CRITICAL MASS

CSIO’s board of directors includes five brokers representing the Insurance Brokers Association of Canada (IBAC). IBAC and its provincial association members have actively participated in the portal’s design, financing and promotion from the first day. In addition, broker support from the grassroots has been strong from all across Canada. Recent broker surveys show that 80% of the respondents would subscribe to the portal this year if most of the major insurer’s rates are there. Current insurer integration combined with the ASP option show that it is extremely likely that broker critical mass is close at hand and will be achieved.

PORTAL ROLLOUT

Current plans call for the start of the rollout to brokers on or around August 1. The initial rollout will probably be limited in broker numbers until we can verify that everything is working as expected and that our support plans have been ramped up correctly. We know that getting broker critical mass support for the portal is only the beginning. Keeping it is just as important – if not more important. Our rollout plans are being developed with that key point in mind.

For some time now, we have been doing portal seminars across Canada for promotional and educational purposes. A variety of workflow diagrams have been developed which explain BMS (broker management system) and portal integration and illustrate how single entry is accomplished. A training presentation has also been developed for seminar use. We are also currently in the process of developing an “e-learning tool” for self-paced training. At this time we expect that this e-learning tool will be available from our website and in CD-ROM format. Furthermore, a portal “help desk” with an accompanying web site is also being set up (It will eventually be staffed from 9am Atlantic Time through to 5pm Pacific Time). In total, all of these rollout activities and resources are intended to make your use of the portal easy, efficient and beneficial.