Beyond Broker Management Systems

Many brokers will take the time to look at some of their technology, but most are fixated on the broker management system – and perhaps with good reason. The broker management system is the central repository of customer information, policy and proposal information, activity histories and scheduled follow ups, accounting data and marketing analysis tools.

However, there is more to the equation. There are many other considerations beyond the broker management system. It can be a bit challenging to keep in check all of the different considerations, so we have provided a simple model for brokers to use as a guide in planning the future of their systems.

THE NETWORK

The foundation of systems is the network. The network includes server(s), hubs and/or switches, and network cables. The network used to be quite simple. However, now the network includes the Internet. Various company portals, the CSIO portal initiative, and other integral tools that brokers use each day can reasonably be considered a part of the network. Also, remote connections including dial up sessions, mobile users and even wireless PDA connections are inching their way into the broker network.

CORE APPLICATIONS

Core applications really focuses on the broker management system. Selecting the right application is typically the result of balancing functionality, underlying technology, the breadth and quality of customer service, and pace of development against the investments.

INTEGRATED APPLICATIONS

Integrated applications are possibly the most under-rated elements in the broker technology platform, and in many cases, this is the area where the technology return on investment battle is won or lost.

Some pretty standard integrations include Microsoft Word and Excel. Microsoft Word is very popular for word processing functions, generating customized documents and creating mail merge outputs. Microsoft Excel, however, is often under-utilized. Excel can provide extremely powerful data analysis of everything from staff activity levels, to financial analysis, to slicing and dicing brokerage production numbers.

Integrated rating solutions have always been in high demand by brokers. Since broker management systems and rating applications gather essentially the same risk information, having the two applications share their data can be a tremendous tool for shortening and simplifying quoting workflows. Integration between broker systems and rating applications have evolved significantly over the past few years, and the more extensive the integration, the better the results will be. A powerful integrated application that is beginning to gain much more momentum is the use of integrated document imaging software. With scanning tied to the broker management system, a document imaging and storage solution can be achieved that is reliable, easy to use and secure. Key points to consider should include secure storage of the images and audit trails of all images for errors and omissions (E&O) risk protection.

Also gaining market adoption is the use of integrated, third party commercial proposal and policy management systems. Many broker management systems are suitable for handling the processing requirements for typical, small business commercial accounts. However, when brokers begin handling larger commercial volumes, more specialized programs, or are issuing the policies, more powerful tools are required. There is a small selection of applications that are available, and only one or two that are able to integrate with the broker management system.

Some areas of integration with the broker management system that can deliver some real value include electronic mail, digital cameras, network-based faxing solutions, and website connections. Integrated applications deliver the most value when they are properly deployed and the training is comprehensive. Brokers that take the time to map out their workflows, and then begin to look at technology changes in the light of their business processes seem to be getting the best results when using integrated applications.

BUSINESS INTELLIGENCE

What has happened in your brokerage today? How about in the last hour or even the last few minutes? Technology can take a digital pulse of a business. It can tell us where we are performing well, and where we are missing the mark. It can provide indicators into the quality of our customer service. How can it do this? It is predicated on the assumption that all staff use the tools to process all transactions.

Business intelligence orients around the notion that we can make better decisions and respond more appropriately to business conditions when accurate information is available. There are a few key qualifiers here. First, the information must be accurate which should shift some of our technology attention to ensuring standards are in place for data entry and coding. Secondly, the information must be accessible in real time – accurate data that is delivered too late may be of no use to us. Thirdly, the information needs to be presented in a manner that is easy to understand and interpret.

Most software applications that are used by insurance brokers permit the implementation of some data entry standards – workflow, training and documentation can help augment this. Also, most applications keep their data which means that the information that was entered is still in the software somewhere. The challenge point typically shows itself when trying to glean through the data to create an intelligible model or analysis that can be understood.

Some rather creative solutions are in use by some brokers, and Microsoft Excel is one of the strongest tools for delivering business intelligence. Pat Durepos of Alliance Assurance, headquartered in Grand Falls, New Brunswick, uses the query tools in Excel to analyze their activity with insurance companies, sales and service levels, staff productivity, and even to calculate “Team Dollars” – Alliance’s internal profit sharing program. Having easy access to databases that are used in the brokerage is a core requirement in working with business intelligence. Databases like Microsoft’s SQL application have been engineered to respond to structured queries quickly and easily.

Tools continue to evolve, and access to a “digital dashboard” displaying real time metrics of various business process activities is becoming a reality. Microsoft has tools available today that can permit some degree of integration in analyzing and reporting on information in different data sources. Brokers should expect to see these kinds of tools to show up in their core applications in the next 12 to 18 months.

INTELLECTUAL CAPITAL

Information is important. The proper use of information is empowering and can make the difference in growing a business, delivering better client service, keeping staff and developing their skills, and creating a responsive, healthy organization. How much of the information in your brokerage is documented, saved in a system, or archived? How much of it is stored in the brains of your staff?

Managing intellectual capital in its most basic form starts by ‘encoding’ the information in your brokerage. To encode information, it needs to be transferred from people’s minds, and from paper files, into accessible, searchable and reliable data containers. These data containers may be databases, they may be Word documents, or they may be entries in a core application. What is important is that the information that is the power of your brokerage is protected from loss or misuse, that it is shared and available to any who may need it, and that it is used to build upon for the future. Brokers that use their broker management system as a central repository for information, and augment that by documenting skills, procedures, best practices and successful habits are well on their way to truly exploiting the technology at their finger tips.

LOOKING BEYOND

Without a doubt, the broker management system is important – as a core application it should be leveraged heavily for information management and decision making. But, to get the biggest r eturn on your technology investments, make sure that you look further to identify ways to stretch your returns further by exploiting utilities, tools and add-on software. Success lies in the “system”, not just in the use of a single application.