Letters (April 01, 2001)

Dear Editor,

I have just reviewed CU’s editorial in the February 2000 issue (“Visions vs. Reality”). Your insight into the pace of development within our industry is very refreshing. Applied Systems Canada has been participating in the various “industry solutions” for the past 13 years. On a fairly regular basis we can count on another magic bullet solution that is primarily dictated from insurers. Each of these has failed because they ignore the reality of how insurance is transacted, what activities actually occur in a broker’s office, and at what pace insurers are actually willing to update their own systems.

We have had meetings regarding the current initiative where the prime contractors have never actually been in a broker’s office. How is a solution to be developed when the workflow of half the participants haven’t been taken into account? Additionally, why would a broker adopt a solution that is more cumbersome, more costly, requires duplicate data entry, and is ultimately less effective than what he is currently using? We have been told that any industry solution must be targeted at the lowest common denominator among insurers, brokers, and broker system vendors. Our response to this argument is, the lowest common denominator is the exact group that will not be in business long enough to take advantage of the solution.

We will continue to develop solutions and participate in initiatives that are supported by our customers, but it is good to know that somebody has seen through the marketing spin and questioned the fundamentals of the current offering.

Greg Purdy

CEO, Applied Systems Canada Inc.

Dear Editor,

I thought your editorial piece (“Visions vs, Reality, February, 2000) to be one of the best I have seen. The frustration of watching our industry (retail side) swallow every technocrat’s “initiative” has become almost too much to handle as a broker.

Voices of reason or dissention during imposed chaos are not often used or heard. Please keep it up if you can on this, and other “projects” assigned to us by our unwanted process makers.

Thank you,

Robert D. Standon

President, Insurance Unlimited Insurance Brokers Inc.cu