Builders risk online

Rough Notes, May 2003 by Strazewski, Len

The online self-service system has also become the model for the Zurich North America Small Business World Class Classes, 115 lines of small business coverage that include trade contractors, travel agents, wholesalers and restaurant and hotel equipment sellers, among many other small businesses. In five years, the small business division has grown from $40 million to $1.7 billion in premium volume, sparked by the new technology and the efficiency it represents.

Prior to advanced underwriting and service technology, the coverage acquisition process from quotation to policy delivery could take as much as 60 days, he admits. The development of call centers and the reduction of steps in the underwriting process reduced the experience to 15 to 30 minutes.

But online self-service technology and the ability to automate underwriting for many standard risks reduces the experience to five minutes or less, Thomas says, including the online delivery of a valid insurance policy.

And for agents working in a competitive environment, that time is money.

The technology has also reduced the cost of processes from as much as $19 per policy in the old, paper-based application and policy delivery process to as little as $0.85 for self-service, Thomas says. The improvement in efficiency translates to increased profitability and revenue for agents and brokers, he adds.

"For the agent, the system value is all about pre-tax profitability," he says.

For more information:

Builders Risk Plan from Zurich Insurance

Web site: www.buildersrisk.com

Phone: (866) 279-8253.