Technology Can Enhance Agent-Carrier Relations

Technology, often derided as harmful to human relations in business, may actually hold the key to the insurance industry remaining a “people business,” including helping improve relationships between carriers and agents.

Insurance leaders in New York recently assessed the relationship between agents and companies as strained by the inability of agents to obtain timely quotes for insurance policies. While agents expressed frustration at not receiving timely quotes, company representatives noted that, through technology, turn-around time is improving and that in some cases, agents are able to get quotes for certain policies on their own.

“This is a ‘people business’ and it always will be,” said Stephen A. Harris, president and chief executive officer, Sterling Insurance Co. “We think we’ve done a lot of great things from the automation standpoint and we have a lot on the horizon … But we go out of our way to treat agents well.”

PIANY panel
The Professional Insurance Agents of New York State Inc. held its annual CEO/Agency Conference panel in Albany recently. Panelists were John Angerami, president of Chubb Custom Market Inc.; John W. Bailey, executive vice president, George B. Bailey Agency Inc.; Alan Crater, regional president, Citizens and Hanover Insurance Cos.; Stephen A. Harris, president and CEO, Sterling Insurance Co.; David Paige, JD, chief operating officer, the DeWitt Stern Group; and Richard J. Zick, president and CEO, Utica First Insurance Co.

From the agent’s side Bailey noted that, while technology has its advantages, it also can present some headaches.

“From an agent’s prospective, it’s different because we’re dealing with 10 different companies and have to learn 10 different systems, 10 different ways to do business and 10 different ways of handling information,” said Bailey. “In order for this to all come together, it needs to all fit in a way in which we can all share information easily. The paperless environment is only going to be successful if the technology evolves to where we can use it easily.”

While panelists did not think it was possible to have all insurance companies using the same type of computer software, they did note the use of ACORD standards can decrease time spent inputting data.

Zick’s company, Utica First, went “paperless” three years ago and he maintained that it definitely has increased efficiency and communication with agents.

“We received 30,000 less calls the first year we went paperless. We attributed that to the fact that our agents are getting the information they need the first time they contact us,” Zick said.