TECHNOLOGY
InstantQuote quotes and binds most coverage in five minutes
By Dennis H. Pillsbury
"Nearly every commercial business has equipment breakdown exposure, and the only way to reach that untapped market was to create a system that could be used by all agents."--Chuck Bittner, Director of e-business, Hartford Steam Boiler
When Hartford Steam Boiler decided to add online quotes to its Web site, it started out by asking agents what they wanted. "We conducted an agency survey about a year ago," says Chuck Bittner, director of e-business. "The agents told us they needed two things: 1) better understanding of equipment breakdown coverage; and 2) a quoting process that fit with their workflow. We also found out that most of our agents were getting between 90% and 100% of their Main Street business quotes online. Clearly, we needed to be there."
Once the decision was made, the company then went to its agents to find out about their automation systems. "We didn't want our system to be special, but to operate like systems they already were using," Chuck says. "We spent about 50% of our time designing and testing the screens to see if it would work for people who did not understand equipment breakdown coverage. We had to have a system that would work for agencies of every size. Nearly every commercial business has equipment breakdown exposure, and the only way to reach that untapped market was to create a system that could be used by all agents."
The result was HSB InstantQuote. The system relies on Hartford Steam Boiler's extensive database of equipment breakdown requirements for different businesses. It simply asks agents to supply information such as location and types of business, business values and so on. "It's all information that can be found on a standard commercial lines policy," Chuck points out. With that information, InstantQuote will then recommend a program of equipment breakdown coverage for the particular business. "We recognized that, for the system to be effective, we had to stand behind our quote. And we do. If the agent wants the coverage as presented, he or she can simply hit 'continue' and accept and bind that coverage or they can vary the coverage and deductibles online to develop a different quote. So far, most of our agents are accepting the program we recommend," Chuck says.
The system was rolled out in February. Agents who already are licensed with HSB (there are around 14,000) can get a quote the first time they log on.
The system also provides information about equipment breakdown coverage and typical exposures. It includes exposure information for more than a dozen business types, providing a pictorial presentation of what the business looks like. The picture shows the different pieces of equipment that would be inside the business and talks about typical types of losses.
"The main types of loss are electrical exposures." Chuck points out. "Electrical arcing can cause severe damage, not just to the distribution panel but to the entire electrical distribution system since it is all interconnected. For most businesses today, if they're out of power, they're out of business."
As the HSB Web site points out, virtually every business increasingly relies on equipment, failure of which may be excluded in many commercial policies. Equipment breakdown insurance includes coverage for many types of equipment including:
* Telecommunications systems
* Electrical systems
* Air conditioning and refrigeration
* Elevators
* Escalators
* Stand-by generators
* Pumps
* Cash registers
* Inventory control systems
* Copiers
* And more
Quotes include coverage for direct loss and indirect loss (business interruption). Contingent business interruption also is offered.
Matt Brott, account manager for Partners Specialty Group, an MGA based in Kansas City, Missouri, says the system has been "a really valuable tool." Partners began using the system in February after their regional HSB rep, Ed Roberts, showed the MGA some of the new features of the insurer's Web site.
"We're an independent wholesaler writing property of $25,000 and up in written premium on an E&S basis," Matt says. "Equipment breakdown can be attached in most cases. I've been going through what's on my desk and it's been great. It's a win-win situation. It helps protect our retailers from E&O exposures and makes it much easier for us to provide all necessary coverages."
Matt continues by pointing out that the site also includes marketing material and a "good glossary that helps us explain the coverage to the retailer. The average quote turnaround time is five minutes or less. We also like the feature that allows us to tweak the limits and coverage. For example, we might get a call from a retailer who points out that the coverage needs to include spoilage. We can put that in and get a quote."
He concludes: "I've run about 20 accounts [through the system] and have not had any problems. If the insureds' parameters result in an inability to quote online, HSB will call you back the same day and let you know it will need to be individually underwritten."
HSB is in the process of rolling out the system to wholesalers and retailers. "We're using a two-stage approach," Chuck says. "The first wave of welcome kits went out to marketers to agents. We also have a mail campaign going to reach other agents."
Thus far, agents report that the system is intuitive and easy-to-use. In its first three weeks, InstantQuote reached more than 2,000 users. "We're really pleased with the reception," Chuck concludes. *
For more information:
Hartford Steam Boiler
Phone: (800) 345-1122
Web site: www.hsb.com