SEMCI: A dynamic concept

Rough Notes, Jun 1999 by Swindell, Bud

SEMCI's current policy processing efficiencies can position agents for future technological upgrades

A common joke in computer circles revolves around the computer manufacturer who was so successful he had to move to smaller premises. Ironically, smaller often is better-particularly when it relates to computers and workloads. In the case of our agency, it's the agency management system and our agency-company interface with insurance companies that enable us to be efficient and remain competitive. And now that we interface with an insurance carrier directly through our agency management system, we save time that allows us to focus more of our energy on business production.

"That does not compute"

In the old Robert Cummings sitcom "My Living Doll," Julie Newmar's robotic character often would respond to things she didn't understand by saying, "That does not compute." That's exactly what I say to people who haven't yet taken advantage of the benefits and efficiencies of computer automation and agency/company interfacespecifically single-entry, multiple company interface (SEMCI). Some agencies view such interaction as a remote concept, dependent on the refinement of Internet technology sometime in the future. In fact, significant strides already have been made in agency automation and interface. So, in my mind, waiting for a future that's already here really does not compute.

X =The Internet?

Making the Internet the big variable in the interface equation produces misleading results. The Internet has revolutionized the ways in which information is disseminated and retrieved, and it may further revolutionize agency/company interaction. Nevertheless, it's not yet possible to use the Internet to process many insurance transactions. Some insurers and creators of agency management systems have developed ways to allow Web sites to act as front ends for the insurers' systems. But the industry as a whole has not yet refined Internet technology as a means to agency/company interface. Consequently, the value of the Internet in electronic commerce for the insurance industry is yet to be fully realized.

The truth is that SEMCI remains the constant in the interface equation. Because SEMCI is unlikely to be replaced by Internet technology, waiting for such a replacement ignores the benefits of improved workflow and increased efficiency that automation technology enables right now. By using agency management systems and company interface technologies presently available, agencies can streamline their operations and position themselves to take advantage of future technological upgrades. What's more, the Internet won't change the basic structure of SEMCI. It may prompt some improvements; but the real change will be in the pipeline through which data is transmittednot in the form or nature of that data. To illustrate, consider this:

Breaking the Law of Large Numbers

Throwing more staff at productivity problems is not likely to fix them. Last year, our agency workforce consisted of just two agents, supported by a trainee. Nonetheless, we wrote approximately 250 personal lines and small business policies through our SEMCI interface with The Hartford. Conservatively speaking, that automation saved us more than two hours per policy, saving us at least 25% of the time we spent processing policies in our preinterface days (completing applications, reviewing underwriting, issuing policies, reviewing policies, and completing the database). With that efficiency, we hit our year-end production goals by October.

And that's just one side of the policy consideration; the other is that, whenever there are changes to be made to a given policy, the system automatically populates the database with all the pertinent information. Repetitive data entry is eliminated, and the possibilities for error are reduced. As a result, technology makes our work more enjoyable, improving the quality of data even as it eliminates many of our more mundane routines.

Even a modest investment in SEMCI technology will yield immediate benefits. If our results are typical, it's conceivable that an agency our size could process 1,000 more policies a year! And with table edits and online help features, SEMCI also decreases the need for follow-up. Without SEMCI, approximately 20% of all applications are submitted with information missing.

Formula for success

While SEMCI may not yet have fulfilled its potential for interfacing with multiple insurers at once, it does produce a highly efficient workflow-that is, a way to automate and monitor the progress of a document or project through its life cycle. For example, SEMCI already enables single entry for data and documents. It already provides automated interface between the agent and insurers like The Hartford that have devoted resources to bridging their systems with agency management systems. And it already provides the increased production and reduced errors that were the impetus for its creation.

Ultimately, the Internet will complement SEMCI and increase its capabilities. Since SEMCI describes a workflow, the prospective transition to Internet technology would simply shift the workflow from one technology base (the agency management and company interface systems through which SEMCI presently functions) to a new technology base (the Internet). Once the industry adopts and refines Internet technology, more and more companies' databases will be accessible with single entry. But the benefits of SEMCI are available right now.