aamga presentation mar15 2009

RETAIL AGENT – E&S MARKET WORKGROUPKEYNOTE PRESENTATION

MARCH 15, 2009

Sponsored By

Retail Agent/E & S Working Group

2

Purpose

• Improve the electronic exchange of information between Retailers and MGA/Wholesalers

Retail Agent/E & S Working Group

3

Background & History

• How It All Started– 2004-2008

• Substantial progress has been made in implementation of real time interfaces and download in the standard market

– May 2008• ACT – NAPSLO – AAMGA partnered to improve

electronic interfaces between retail agent and MGAs and the E&S Market

Co-Chairs Selected– Angelyn Treutel – Treutel Insurance – Retail Agent– John Deibler – Scottsdale – E&S Carrier 4

Sufficient information to

rate/underwrite?

Manual data entry into Agency Management System

New Business – Current State

Retail Agent

Enter Data

Agency Management SystemAMS, Applied,Doris, Other

ACORD app & PDF

Email FaxPaper snailmail

GA 1 GA 2 GA 3 Etc.

Request additional information,

supplemental apps NO

FaxPaper snailmail

Sup

plem

enta

l app

, req

uest

for m

ore

info

QU

OTE

Manual data entry into rater

2

45

Manual data entry into Agency Management System

GA web site

BOTH

1

3

THE PROBLEMS

E-mail

Agency Management System: Epic, Omni, CIS, Other

YES Rate

6

WholesaleBrokers

QU

OTE

E & S Carrier

Quote

Issues

-Redundant Entry

-Security (Multiple Passwords)

-Supplemental Apps.

-Complex Work Flow

-Lack of Integration at GA Level

-Response Time to Retailer

-Cost Effective Vendor Solutions

5

Agency Mgmt System

Retail Agent

RaterStandard

Carrier

AUTOMATED INTERFACESREQUEST QUOTE

MAKE AN INQUIRY, REQUEST A CHANGE.

DOWNLOAD & SYNCHRONIZE AGENCY & CARRIER & MGA DATA

MGA/GAWholesaler

CUSTOMER

Agency Mgmt System

Rater

E&S Carrier

VISION Independent Agent Distribution System

6

GA Systems Integration

•Develop Recommendations for GA websites development•Define Minimum Components and logical progression for implementation•Develop Recommendation and benefit analysis

ReceiptTransmissionForms & Data Input

Solution Delivery ProcessNew Business/Submit/Quote Work Flow

GA System Integration•Review Current State•Identify Opportunities•Develop Recommendation

Technical Transmission•Review Current State•Review Vendor Products•Develop Recommendations

Retail System•Review Current State•Focus on Standards•Partner with ACORD to develop standards for supplemental data requirements•Develop Industry Recommendations

Chair- Mike Roy – CRC – General Agent

Improve Work Flow – Eliminate Redundancies and Bottlenecks

Retail Systems & Forms

GA Website Content/Functionality

Chairman - Eldon Hunsicker – Noel Insurance – Retail Agent

Co-Chairs - Mike Ardis – NAPSLO and Sharon Emek – CBS Insurance – Retail Agent

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Background & History

– August - September 2008 (53 participants)• Conference calls and on-line sessions began• Setup Teams Collaboration site (courtesy of ACORD)

– October 2008–ACORD Conference–Fort Lauderdale• First face-to-face meeting of entire group

– November 2008 – March 2009 (106 participants)• Conference calls and on-line sessions continue (24

meetings)• Have made substantial progress

– Today – March 15, 2009• Second face-to-face meeting of entire workgroup• Subgroup updates

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What is Real Time?

It’s all about Making the Sale!• Agents – close the

deal• MGAs/Carriers – write

the business• Customers – realize

the value they receive for the money they pay

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•Real Time is NOT usingindividual carrier or MGA

websites !Issues

-Redundant Data Entry

-Security (Multiple Passwords)

-Complex Work Flow

-Lack of Integration at GA Level

-Response Time to Retailer10

Real Time is Single Entry !!

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12

CLICK THE BUTTON!!

13

SELECT RISK TO QUOTE AND WHICH COMPANIES/MGAs TO TRANSMIT APPLICATION DATA

14

DATA IS BRIDGED TO CARRIER/MGA WEBSITES AND

POPULATES THEIR SYSTEM. ANY ‘UNIQUE’ DATA IS ABLE TO BE ENTERED AT THIS POINT BY CLICKING THESPECIFIC COMPANY. REAL-TIME WILL OPEN TOTHE APPROPRIATE WEBPAGE ON THE CARRIER/MGA SITE WITHOUT THE NEED TO USE LOGIN/PASSWORD WHICH IS EMBEDDED IN THE TRANSMISSION.

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INQUIRY EXAMPLE: CLICK THE BUTTON FROM THE RETAIL AGENT AGENCY SYSTEM …

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SELECT POLICY AND HIT ‘GO’.

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CARRIER/MGA RETURNSINFORMATION REQUESTED.

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REQUESTED DATA CAN BE ATTACHED IN THE RETAIL AGENT SYSTEM

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REQUEST LOSS RUNS …

REQUESTED REPORT IS PROVIDED IN SECONDS AND CAN BE ATTACHED WITHIN RETAIL AGENT SYSTEM.

REAL TIME FUNCTIONALITY

Claim Inquiry Rate

Billing Inquiry 1st Notice of Loss

Loss Runs Payment

Policy Inquiry Endorsement

Alerts !!!!

EVERY INDUSTRY HAS STANDARDS …

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THINGS WE TAKE FOR GRANTED …Hot water is on the ________ side. (How many faucet types are available???)-----------------------------------------------------------------------------------

Lights go on when you press the switch ___. (How many different fixtures are available?)------------------------------------------------------------------------------------

In the US we drive on the ___________ side of the road.----------------------------------------------------------------From an independent agent’s perspective: -Carriers use standardized ACORD Forms - Policy data is downloaded back into the agent systems - Clicking a button in our agency system will return an realtime inquiry

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LACK OF STANDARDS LEADS TO …

+ What side of the car is the gas cap on?????

+ Calculator keypads vs Telephone Keypads

+ Every cell phone needs a different adapter to charge it!!!

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RA/MGA/E&S Interface Opportunities

• Begin and end in the agency management system

• Paperless processing

• Online quoting and bridging of data

• Online servicing for account, policy, and claims

• Standardized communications

• Use of ACORD Applications & Supplementals whenever possible 25

Subgroup Presentations

1) Retail Agent Interface

2) General Agent Interface

3) General Agent Websites

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RETAIL AGENT INTERFACE

Sharon Emek and Mike Ardis

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Retail Agent / E&S Workgroup

MISSION:

To improve the efficiencies for data interchange among retail agents, managing general agents and wholesale brokers, and the E&S carriers through the electronic exchange of data between all parties.

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Retail Agent Interface Purpose• To focus on E&S company applications and

supplemental forms• To determine the data requirements that are

comparable to the current ACORD standards and forms so that the ACORD applications can become the general application across the E&S market

• To reduce, streamline, and standardize supplemental applications as much as possible

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Retail Agent Interface Goal

• The overarching goal of the Retail Agent Interface Group is the standardization, to the extent possible, of the applications and data submitted by Retailers to GA’s for E&S Carriers, by encouraging the use of existing ACORD Forms and assisting in the development of supplemental forms when needed. 30

Agency Mgmt System

Retail Agent

RaterStandard

Carrier




MGA/GAWholesaler

CUSTOMER

Agency Mgmt System

Rater

E&S Carrier


31

E&S Business Segments

E & S business processed in the GA market can be generally categorized into three segments:– Brokerage (No GA binding authority)– Binding Authority (Non-Program)– Binding Authority (Program)

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Brokerage Segment

• This segment defined as “Brokerage” is being handled by a Brokerage department within a GA operation or by a “Wholesale Broker”.

• Retailers can submit existing ACORD forms and data to GA’s or Brokers.

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Binding Authority(Program)

• This is the largest business segment for most E & S Carriers/GA’s and is also the most unique.

• Need to analyze existing ACORD forms for applicability and standardize as much as possible remaining Supplemental forms.

34

Binding Authority (Non-Program)

• P & C business not defined as a “program” can generally be submitted using ACORD forms and data standards. It is estimated that approximately 30% of GA binding authority business fits this segment.– Example: Transportation business done in the

E & S Market can be submitted using ACORD forms and data standards. 35

Current Reality

• Agent submits application to MGA,most often a carrier specific application

• MGA/carrier requires additional information

• MGA/ carrier requires supplemental applications– Supplementals vary among carriers– Similar information requested 36

Stop the Madness!!!

Company Specific Applications and Supplemental Applications

• Additional burden on Retail and General Agents• Not included in Agency Management Systems• Require manual completion and re-keying into

systems• Are NOT really ‘unique’

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Rating Questions on Supplementals

Carrier 1 - Any work performed underground or above 15 feet?

Carrier 2 - Any work performed below 12 feet underground?

Carrier 3 - Any work performed above 25 feet?

Carrier 4 - Any work performed below 10 feet?

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Benefit of Developing a Standard

Carrier 1 - Any work performed underground or above 15 feet?Carrier 2- Any work performed below 12 feet underground?Carrier 3 - Any work performed above 25 feet?Carrier 4 - Any work performed below 10 feet?

What is the highest level above ground at which work is performed?What is the lowest level underground at which work is performed?

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Why Use Standards???

2008 Insurance Industry Survey by IVANS

• Real-time and Download Insurance Transactions Critical for Succeeding in a Down-turned Economy

• Critical – improve the ease of doing business

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Standards are Key

WHY USE STANDARDS?• Increase efficiency and lower cost• Create data streams that can be used by all

systems – RA, GA, Carrier, Vendor, etc.• Ease of doing business = more sales for all

HOW DO WE CREATE STANDARDS?

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ACORD

• ACORD (Association for Cooperative Operations Research and Development)

• Global, nonprofit standards development organization serving the insurance industry

• Goal of improved data communication across diverse platforms through implementation of standards

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(6 minute video) http://www.acord.org/about/whoarewe.aspx

WHO IS ACORD?

WHAT ARE ACORD STANDARDS?

WHAT IS THE VALUE OF ACORD STANDARDS?

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http://www.acord.org/about/whoarewe.aspx

http://www.acord.org/about/whoarewe.aspx

RA INTERFACE/ ACORD PARTNERSHIP

• RA Interface group will identify areas where industry standards are neededRA Interface group will develop an initial matrix

to identify: - ACORD data - Non-ACORD data required for rating - Non-ACORD data required for binding

• RA Interface group will turn over matrix information to ACORD

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Working with ACORD• ACORD will develop proposed format for

supplemental applications and/or proposed additions to existing ACORD applications, as appropriate.

• ACORD will obtain additional carrier/agent/vendor input, develop appropriate standards and obtain industry approval

• ACORD and RA Interface group will work jointly to recruit resources, as needed, for standards development and implementations 45

Areas of Emphasis• Eight specialty programs have been identified to start the

development effort. We believe business in these programs is 50% or more of the overall program volume.

• Artisan • Apartment• Lessors Risk • Condominium/HO Associations• Alarm Installation• Office• Vacant Building• Small Restaurant/Coffee Shop/Deli

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Process for Review(See Handouts Provided)

• Began with Vacant Building and Apartment Programs

• Reviewed existing Program Applications and Developed Matrix of data fields

• ACORD forms contained most of the required data fields

FORM 125 – General Commercial Insurance Application

FORM 140 – Property ApplicationFORM 126 – Commercial General Liability 47

Process for Review

• Supplemental Data Analyzed• Split between data “Required for Quoting” vs

“Required to Bind”• “Required for Quoting” data fields will facilitate

Quick Quoting or providing an Indication• “Required to Bind” will be additional UW data

fields for the risk that can be obtained when ready to bind 48

Latest and Greatest

• Update on Retail Agent Interface meeting this morning

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NEXT STEPSYOUR HELP IS NEEDED –

CALLING ALL E&S Carriers !!• Adopt ACORD standards to facilitate Industry’s

momentum toward Real-time interfaces• Join the RA Interface Team to assist with Initial

Matrix Development and for additional program areas

• Need Companies to complete their own matrix across all company specific applications

• Work with ACORD Team in developing standardized Supplemental Applications

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GENERAL AGENT INTERFACE

Mike Roy

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GA InterfacePurpose: Concentration on data transmission streams from retail agents to general agents, as well as within general agents, and begin to automate the flow of this data as much as possible

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Charter• Improve workflows and efficiencies in the interaction of

agents, MGA/Wholesalers and carriers• With input from all parties, define pain points,

particularly surrounding multiple points of data entry and timely access to information.

• Engage the vendor community to educate us on capabilities of current solutions and to offer them the opportunity to design future solutions based on our business needs.

• Provide a conduit for collaboration and the exchange of information and experiences to further the E&S distribution chain in general.

• Be a positive catalyst for change and the adoption of standards. 53

• Adopt the new submission workflow as our business problem in need of enhancement through automation

• In depth, technical look at current send technologies to include TransactNow and Transformation station

• Search out other solutions that offer reductions in time and keystrokes in the processing of new business submissions

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• Engage independent agents on educating MGA’s and E&S carriers on their workflows in terms of submission entry and processing.

• Allow MGA/Wholesalers to present to agents and E&S carriers system integration and workflow issues that are common in their environment.

• Allow E&S carriers to do the same.

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Vendor Presentations to date• AMS360 – Transact Now

• Applied – Transformation Station

• Seapass

• Appulate

• We appreciate their willingness to work together to offer solutions for improving electronic interfaces in the industry 56

AMS360/TransactNow• Data is exported from the AMS management system to

TransactNOW which generates ACORD XML.

• The agent launches TNOW like they normally do, which pre-populates the data sent from their management system.

• Once in TNOW, they have the opportunity to add additional information based on common fields that MGAs & Carriers will need for the submission. They can also attach unstructured data to send with the submission.

• Until standardized ACORD forms are developed for ‘Supplemental Data’, another program provides ‘gapping’ logic to obtain appropriate information. The Carrier/MGA can add their own logic rules.

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AMS TransactNow

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Applied/Transformation Station• Data from the Agency Management system is transmitted using ACORD XML

for Commercial and Personal Lines Policy data. Transformation Station supports real-time Quoting, Bridging, Inquiry, FNOL, etc.

• Broker parsing is available for a Broker receiving downloaded data from a

carrier, and wants to provide the same data to individual retail agents.

• The Broker Download service parses the Brokers daily download from the

Carrier into individual agency files and deposits each file into each agency’s

IVANS mailbox:

• Broker Download service is connected directly (and securely) to the IVANS ECS

Mailbox service

• All Parsing is done in memory, and no data is stored in the service.

• Broker still receives full download message using ACORD AL359

Insurance Company

Applied Systems Broker Download Parsing Service

Parsing

IVANS ECS Mailboxes

Broker Mailbox

Agent Mailbox

Broker MailboxBroker Mailbox

Broker Agency Agency Agency Agency Agency

AL3

AL3AL3AL3AL3AL3

Applied Systems Broker Download Parsing Service

Parsing

MailboxAgent MailboxMailbox

Agent MailboxMailbox



Agent Mailbox

Agent Mailbox

Agent Mailbox

Agent Mailbox

Agent Mailbox

Broker Download Module

60

SeaPassSupporting Automation when available and creating

Automation when it is not1. Allow Retail Agent to Export out of Management System2. Retail Agent Enters Data for Quoting and then alerts

Managing Agent when they are complete3. Provide Real-Time Communication with Managing Agent

and provide ability to Share forms/attachments4. Allow the Managing Agent to interact with Multiple Carrier

interfaces simultaneously and forward/email Carrier specific forms automatically

5. Managing Agent can Post Quote Results within minutes from receiving the information from Retail Agent

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Appulate• Virtual Print Driver allows Retail Agents to ‘print’

standard ACORD forms to any destination (that can consume ACORD XML).

• Uses ACORD XML standard to send ACORD, Supplemental Data, Loss Data, Endorsements and FNOL

• Appulate’s Analytical Insurance Questionnaire Engine (AIQE) is designed to normalize carrier-specific questions to a standard form - thereby removing duplicate questions

63

Agency Products

Agency Management

System

Appulate Uplink/Serve

r

Appulate User

Interface

Carrier Server/Ratin

g System

Uplink /Submission Gateway

Carrier Products – Bridge Services™

Supplemental / Loss Data Endorsements / FNOL

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Latest and Greatest

• Update on General Agent Interface meeting this morning

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NEXT STEPS• YOUR HELP IS NEEDED –

CALLING ALL Vendors!!• Engage the vendor community to educate us on

capabilities of current solutions and to offer them the opportunity to design future solutions based on our business needs.

• Support us in the effort to be a positive catalyst for change and the adoption of standards.

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GA WEBSITE

Eldon Hunsicker

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GA Website

Purpose: Develop a roadmap of recommendations for MGA Web site capabilities

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Generation 1

• Basic Marketing Information

• Examples – contact info, links to appropriate sites, marketing info on appetite

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Generation 2• + login capability

• + quick quote/indication generator or ability to accept ACORD application data request for quote with a later response from the MGA’s UW department

NOTE: Less data should be required to receive an indication. For binding, full ACORD applications, along with pertinent supplementals, will be provided by Retail Agents. 71

Generation 2 (cont.)

• + administrative / accounting access (Active policy/account listing/agent activity log/account current/amount due)

+ capability to accept endorsement requests and claims reporting

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• In Generation 2, there will be varying degrees of integration and functionality with mostly static data on the GA website, however, the website should position the GA for future development and integration with the MGA/Carrier back-end systems described in Generation 3.

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Generation 2 (cont.)• Generation 2 still requires significant duplicate

data entry by both the RA and GA, and the lack of standardization will create confusion for RAs and GAs, however, this step assists with forward progression into Generation 3.

• If possible, Generation 2 and 3 should be developed in parallel.

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Generation 3• Generation 3 provides for Straight-

Through-Processing from the GA website to the appropriate back-end systems (i.e. raters, carriers, etc) and provides for:+ online endorsement processing

+ view/request/report capability for individual policies/customers

+ paperless office environment using digital workflows 75


• Generation 3 is necessary to build the interface to the GAs backend system(s) and prepares for the future integration with the RA systems in Generation 4.

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• Generation 3 includes capability for bindable quotes, online underwriting and referrals, quote proposals, subjectivity management, bind, bill and policy issuance/endorse/renew capabilities

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Generation 4

• Generation 4 provides Real-Time, Straight-Through-Processing from the retail agency management systems

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Generation 4(cont.)• + integration from the RA to GA system using

Real Time interfaces

“Real time is the ability to click on a button from a client file in the RA agency management system or comparative rater for immediate access to MGA/carrier information on that client. The transaction may be a quote, billing inquiry, claim inquiry/loss runs, policy view, endorsements or a request for information. This approach provides a single workflow for servicing or quoting.”

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• + nightly download of policy and claims data from the GA system to the RA system to complete the round trip of data and synchronize the RA and GA files.

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• Generation 4 allows the RA to transmit data from the agency management system to the GA system, and the data populates fields in the GA website to eliminate the need for redundant data entry by either the RA or GA

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Benefits

• Single, Consistent Workflow for Multiple Carriers saves TIME & MONEY

• Enhance PROFESSIONAL Image and Work Environment of your agency

• Increase SALES – frees up time to proactively sell

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Latest and Greatest

• Update on General Agent Website meeting this morning

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NEXT STEPS• YOUR HELP IS NEEDED –

CALLING ALL MGAs!!

• Obtain feedback to proposed recommendations

• Developing ‘business case’ to assist in management justification to technology investment

• Publish industry recommendations in May 0984

GRAND FINALE

Angelyn Treutel & John Deibler

85

Agency Mgmt System

Retail Agent

RaterStandard

Carrier




MGA/GAWholesaler

CUSTOMER

Agency Mgmt System

Rater

E&S Carrier


86

WHAT NEXT?

• Publish industry recommendations to improve the electronic exchange of information between retailers and MGA/Wholesalers

• Educate and convince agencies, carriers, and vendors to make the necessary investments in technology on a timely basis

• Take advantage of the standards & forms that ACORD has created, and recommend additional standards, as needed

• Continue to work together to streamline data requirements, eliminate redundant tasks, and improve work flows

• Publicize efforts and successes through AAMGA, ACT and NAPSLO and identify measures to monitor adoption and increase utilization

• Define milestones that can be achieved within a 12-18 month time frame

87

CORE MESSAGES• To ensure our long-term viability, as an industry, we must

embrace and use ACORD applications and standards: -can be used for brokerage business today -need to focus on other lines that can use existing forms—

identify new standards needed -embrace newly developed ACORD standards/apps

(example: Specialty Lines recently published) -must begin implementing electronic data exchange

TODAY!

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CORE MESSAGES• Segregate data required to quote and data needed to

bind (Can we change our paradigm??? Need to involve Underwriters from E&S Carriers to capture appropriate data.)

• We (RA / GA / E&S Carriers) must work together to reduce supplemental non-essential data requests

• The resulting data must be homogenized and standardized

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CORE MESSAGES (cont.) • With standardized data requirements,

together (RA / GA / E&S Carriers / Vendors) we will automate the business processes and data flow between RAs, GAs, and E&S Carriers

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CORE MESSAGES (cont.) • All of us must work toward the VISION of RT

interfaces through GA websites from the Retailer systems to the General Agent to the Carrier and download back again using ACORD standards

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CORE MESSAGES (cont.) - This effort will take ALL of us: +Retail Agents

+General Agents+E&S Carriers+Vendors+ACORD

* PRE-REGISTERED ON TEAMS• We Need Your Help to Succeed …

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NOW is the time to

accept the challenge !

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aamga presentation mar15 2009

Technology