Insurance company portals have existed for more than a decade now. Yet some in the industry complain that portals force cumbersome “solutions” on brokers, making their workflow inefficient. They have to log in with different signons, complete detailed forms and navigate their way around various transaction procedures specific to each carrier they represent. This, some broker groups say, is far from an ideal solution.
We agree. However, is the problem the portal concept itself, or is it the way portals were first created and implemented by insurance companies?
It’s an important question because the solution that many brokers say they prefer — technology that allows all transactions to be “once-and-done” in their broker management system (BMS) — simply does not exist today.
RE-INVENTING PORTALS
Portals will be around for the foreseeable future and insurance companies will be looking to enhance their online presence. In a study released in April 2010, leading research firm Novarica stated: “Portal projects are one of the top priorities for property and casualty insurers for 2010. Portals are a relatively mature technology and are used by most p&c insurers as one of their primary channels for communication with their distributors.” Novarica also found two-thirds of North American insurers ranked expanding and augmenting their portals among their Top 3 IT priority projects for 2011.
That doesn’t mean portals should look like they have in the past or continue to look like they do today. Portals require a significant revamping. Innovative carriers are looking at unique models that make brokers’ jobs easier and serve customers better. This new wave of technology mandates a rethinking of how portals work, who their designated audience is and what kinds of functions can be best delivered at the point of sale.
Some people may forget the reason most insurance company portals were created in the first place. They were originally intended to allow for more online transactions and functionality. Before portals took hold, electronic data interchange (EDI) between carrier systems and multiple BMS was thought to be an ideal solution. However, data translation problems meant many transactions could not be completed in an automated manner. In many instances, portals were created to solve this problem.
Earliest examples of portals addressed these transactional issues. But carriers may have “lost the forest for the trees.” Initial portal solutions often forced brokers to adopt a workflow that was foreign to them: multiple passwords and sign-ons, confusing forms, limited transactions (i. e. personal lines inquiry only), ineffective search functions and disjointed content and collaboration tools.
THE NEW FACE OF PORTALS
Fast-forward to today and you can see progressive carriers are actively addressing these issues. The good news is that modern portals are significantly more user friendly to navigate. They pre-populate fields so that navigation is easier. They allow a response screen to focus on where updates are needed. They highlight only the changes that are needed and provide automated help. They produce real-time results.
Modern, connected portals allow for real-time BMS upload and extensive interface and collaboration between brokers and carriers. How far this can extend depends on the lines of business, since the requirements for personal lines and commercial lines are quite different. It also depends on the types of transactions. Quoting, new business submissions and inquiry are not the same as policy endorsements or policy changes.
Transactions can range from the simplest (an auto insurance billing inquiry, for example) to the more complex (a policy change for a personal property client). Inquiry into billing, claims and policies is common for both brokers and consumers. Forward thinking carriers are providing both these groups with access to review all policyholder information. Technologies exist to access this information in a variety of fashions, including from a BMS or directly from Web applications. For several carriers, components are shared between consumer and broker portals, so that information is consistent and similar in appearance.
Now let’s say a homeowner wants modification to coverage and expects the policy change to be made immediately and the impact on billing determined on the spot. Here, the “once-and- done” concept of handling the complete transaction in the BMS falls down. A number of different technology requirements are necessary to complete this transaction, such as real-time display of changes, a protected policy that cannot be accessed while the edit is in progress, audit capabilities and a formal authorization process.
This is where portals really come into play. The more complex the transaction, the more insurance companies require agile portal technology that allows them to integrate with other systems and deliver data to the decision-making process. These actions are most easily handled through a carrier portal connected to third-party data so that changes can be underwritten in real-time. Portals give carriers strategic solutions, provide flexibility and offer a broad range of functionality — especially when contrasted with short-term tactics such as moving data from one system to another.
A BMS-only solution lacks protection on policies of record and cannot always guarantee the capture and transfer of data is accurate and complete. In addition, a broker system would require program business logic for each carrier and a means to update its code each time a carrier makes an underwriting and product change. There is no such practical solution today.
For commercial lines, the story gets even more complicated. Technology solutions vary by size of commercial account and inherent complexity. Smaller packaged lines share similarities with personal lines, while mid-sized and large commercial accounts are difficult to categorize due to the unique nature of each account. The differentiation in commercial lines is driving new trends in carrier portals, emphasizing the need to adapt new technology and business processes.
In commercial lines, we are seeing enhanced collaboration between broker and carrier, a greater incorporation of third-party analytics software and data and real-time interaction to better match risks with pricing. All these trends rely on portal technology, integrating with many other systems in order to deliver as much data as necessary.
NEXT-GENERATION PORTALS
Insurance companies recognizing brokers as the key strategic channel against the direct model are extending their online presence in new and exciting ways. Given the increasing focus on younger, tech-savvy consumers who expect instant and complete insurance transactions, carriers are offering technology platforms that provide “near direct,” broker-branded consumer sales and servicing. This allows customers to receive online quotes and service while maintaining the relationship with their brokers — the best of both worlds. We are already seeing examples of this in the U.S. marketplace.
To meet and anticipate customer demands, strategic-thinking carriers will be arming brokers with the capability to connect their processes and systems (BMS and others) seamlessly to call, click and connect with their customers. Brokers will also be better prepared for integrating social and business networking media and mobile channels into their sales and marketing.
It is a lofty goal for brokers to have all transactions done completely in their BMS. However, insurance companies and brokers have different needs. Just as a BMS is an integral part of running a brokerage operation, so too are portals a necessary element for insurers to gather the data they need to improve their decision-making and transaction processing. Both solutions are needed to serve end customers effectively.
In fact, the noise and ene rgy around fighting portals is a false dichotomy. The real goal is ensuring brokers have the same kinds of technology and customer service capabilities that direct writers and agents currently have.
Right now, direct writers can meet many customer service needs — such as quoting, policy submission and policy change — quickly and transparently. Few independent brokers can. Insurance companies should be asking what kinds of technology and business process investments are required to allow them to catch up as quickly as possible?
This is where the heart of the discussion should take place.
———
Portals require a significant revamping. Innovative carriers are looking at unique models that make brokers’ jobs easier and serve customers better. This new wave of technology mandates a re-thinking of how portals work, who their designated audience is and the functions requiring delivery.
———
Fast-forward to today and you can see progressive carriers are actively addressing these issues. The good news is that modern portals are significantly more user-friendly to navigate. They pre-populate fields so that navigation is easier. They allow a response screen to focus on where updates are needed.
———
Carriers are offering technology platforms that provide “near direct” broker-branded consumer sales and servicing. This allows customers to receive online quotes and service while maintaining a relationship with their brokers.
———
A BMS-only solution lacks protection on policies of record. It cannot always guarantee that the capture and transfer of data is accurate and complete. In addition, a broker system would require program business logic for each carrier and a means to update its code each time a carrier makes an underwriting and product change.