TECHNOLOGY
User group presidents use the AUGIE survey as
fuel for urging agencies to beef up their Web site
By Bill Jenkins
As agencies get larger, more recognize the need for a Web presence--and maintaining that site.
Source: ACORD--User Groups Information Exchange. Used with permission.
"The ultimate goal is to deliver 24/7 service to our customers so that any time of the day or night, insureds have access to their data residing on the agency database, and the ability to do policy inquiry, billing inquiry, claim inquiry and other functions."
--Peter Anderson, Past President, Applied Systems Client Network
Since the world caught the Internet fever in the late 1990s, the number of Web sites has grown exponentially. But in the independent agency ranks, not all agency owners are as enthusiastic about having an agency Web site. In fact, some agents are still undecided about whether they even need to have one. And many smaller agencies don't plan on having a Web site at all.
These are some of the perspectives that were expressed in response to one of the questions included in a recently completed survey conducted by the ACORD--User Groups Information Exchange (AUGIE). More individuals responded to this survey than any other in the industry's history, with some 9,000 CSRs, producers and agency owners participating. Why such an overwhelming response? Primarily, it's due to agency management system user group participation in the creation and promotion of the AUGIE survey.
In order to learn more about those responding to the survey, ACORD asked a series of questions about agency operations. The chart on page 62 illustrates the responses to one of those questions about the prevalence of agency Web sites.
For insights into the details of the accompanying chart, we contacted agents who devote a great deal of personal time and attention to technology issues through their own involvement as volunteer user group leaders. Those interviewed for this article include: Peter Anderson with Anderson Insurance Services in Boston, Massachusetts--past president of the Applied Systems Client Network; Mike Hofmeister of Bruce F. Grau & Associates and Insurance Incorporated in Timonium/Hunt Valley, Maryland--president of the National Association of S.I.S. Partner Agents; Phil Moyer with the Weis Agency in Salamanca, New York--president of the DORIS User Group; Robert Pachner of Kaye Group in New York City--president of VIP Users Group (representing users of VRC Systems); and Pam Parry of GRP Risk Solutions in Tucson, Arizona--president of the AMS Users Group.
So, our question for these user group executives was: Why do so many smaller agency owners say they have no plans to build an agency Web site--and what are they missing out on if they don't?
For many it's rooted in an all or nothing approach, preferring face-to-face or phone-to-phone contact with their customers. As Mike Hofmeister explains: "It goes to the idea that these agency owners can't imagine their clients going to a Web site to do business rather than calling them on the phone. As a result, they don't see any need to have a Web site. They just can't accept the fact that some of their clients might need to contact them at some time other than during regular business hours. Many of these agency owners are also producers. In order to sell, a producer has to talk to the client on the phone--or see the client face-to-face. That mindset makes it difficult to conceive of the possibility that there are people who would want to go online and transact business."
Another reason, according to Pam Parry, is that Internet-generated sales haven't materialized as predicted. "There was an exaggerated expectation several years ago that the Internet was going to be a fabulous sales tool. There are still some people out there waiting for others to figure out how to sell with it.
"But as our industry has headed down the Internet path, we've found that it's really a supplemental sales tool," she notes. Its biggest benefit to an agency is its ability to provide information and agency-centered customer service, according to Parry. Agency customers can access to their policy information. They can have 24/7 claims service. Some Web sites include quoting capability. "The benefit for customers is that they can have access at their convenience--which is a huge benefit for them."
So, it should be a blend. Without giving up personal service, agencies should use their Web site to enhance, not detract from, the value-added they provide to clients.
Phil Moyer offers this perspective: "For some time to come, people are still going to want to talk to someone--to get advice--and discuss their recommendations. They want that human touch when it comes to their insurance. However, a Web site offers clients another important way to report a claim. We've asked our vendor to put links to the companies we represent and their claims department up on our Web site. So if one of our clients has a claim on the weekend and wants faster service, the client can go to our Web site, click on the company link and report the claim over the Internet. With the growing number of individuals and businesses that use the Internet, agents need to make that means of communication available."
If an agency has a well-developed Web site, it didn't happen overnight. An agency needs to take a step-by-step approach--building the Web site over time. As Peter Anderson explains: "Developing a 24/7 presence is really where I see all agents needing to be. It's where I brought my own agency Web site over the past two or three years. At a minimum, agencies should start with an electronic business card--what the agency is all about: its mission statement, vision, and the types of coverages it writes."
Anderson recommends that agents visit other agency Web sites to get an idea of what their peers are doing. "The ultimate goal," he says, "is to deliver 24/7 service to our customers so that any time of the day or night, insureds have access to their data residing on the agency database, and the ability to do policy inquiry, billing inquiry, claim inquiry and other functions."
And what about the future? Where are agency Web sites headed, and why make the investment?
Bob Pachner describes what he sees: "Agency Web sites are going to become a communications hub between carriers, brokers and clients. Clients will provide data on their operations, and agencies will communicate with clients. Web sites will have linkages to other internal systems--both in the agency and at the carrier's site--to provide information directly to the customer such as direct billing information and claims information. The Web site should function as a "pass-through" since the client doesn't think of the carrier's name when the client has an insurance issue because, they think of the agent's name."
For larger agencies with larger clients, Bob envisions a platform that is controlled by the agency which defines who gets access and the extent of their activity. Such a "collaborative platform" will make it possible for a larger client to post information on their risk so that it can be reviewed by the agent or broker. At this point, he says, the agent/broker can send a message to the carrier and say "come and get it"--underwrite the risk. There's been no duplicate entry. No wasted time with paper. No phone calls and letters. "The carrier has the information it needs and it's a whole lot easier for the customer. This collaborative platform will incorporate communication, sharing of data, interaction with third parties such as credit and D&B, claims reports, building information, risk management, engineering, and MVR information. All of it can be fully integrated into the process using XML," he explains.
Whether it's a simple informational site or an elaborate collaborative platform, technology offers plenty of options for agents to choose from. *
The author
Bill Jenkins is executive director of the Applied Systems Client Network (ASCnet) based in Altamonte Springs, Florida. He has been involved in the insurance industry for more than 16 years in the areas of marketing, advertising, communication and technology.
For more information:
ACORD
Web site: www.acord.org/augie