LOWDOWN ON DOWNLOAD, THE

Rough Notes, Mar 2004 by Shumaker, Wanda

Agencies' vigilance remains a necessary component of the maintenance of policy data

As part of their efforts to expedite the delivery of policy data and to facilitate the agency's entry of that data into the agency management system, insurance companies provide download to agency management systems. Yet many agencies find themselves as dependent as ever on paper files, citing download inaccuracies as one of the primary causes. Some have even found themselves questioning the value of download.

The original concept of download was introduced well before Internet technology; and aside from the few carriers that also supported upload, most application submissions were still printed and mailed. In any case, the initial policy data originated in the agency management system.

In today's Web-enabled environment, a myriad of carrier sites tout easier quoting and issuing of policies, while still providing the eventual data download to the agency management system. In this environment, though, the initial client and policy data are often keyed into a source other than the agency management system, leaving a gap in valid agency management system policy data.

One of the numerous benefits that download was expected to provide agents was that agencies no longer had to be a worry about errors or accuracy. Apparently agents took that notion seriously because when asked how downloaded policies are checked for accuracy, many agency service people admit they don't check them, and some even exhibit a defiant disbelief that it should be necessary.

What download is, and is not

Put simply, download is a delivery method. Thus, a policy that is downloaded to the agency is no less (or more) prone to inaccuracy than a policy that is delivered by fax or mail. The maintenance of agency management system data accuracy is and always has been the agency's responsibility.

In addition, contrary to popular expectations, the data resulting from a request for a policy issue or coverage endorsement does not always appear overnight. Do not assume that your download will take place "immediately." In fact, just as with paper or phone requests, downloaded policy transactions can be delayed for any number of valid reasons. If you have not updated your own policy management detail with the appropriate change, and a downloaded change takes two weeks to receive, then you have just exposed your agency to a two-week gap in accurate data.

What is your primary source of data?

This question is from what I refer to as "Agency Technology 101." If your agency management system is going to be your primary source of policy data, then it must be maintained and checked. That means that even if you are waiting for a download, your current policy data should be updated, and the final download should be checked for accuracy against the original order.

If you are not willing to key the coverage data into the application, consider keeping a digital copy of the original quotes, forms and signed application. Additionally, you should have some type of suspense set up in your agency management system indicating that you are waiting for the change or issue, just as you would if you were waiting on paper copies.

What happened to SEMCI?

While some carriers accommodate upload (receive information from the application created in the agency management system) and provide real-time interface portals such as Transformation Station, a great many carriers have taken the proprietary route. This has forced agency personnel back into a double-entry environment. In fact, it can often mean triple and quadruple entry if more than one carrier quote is needed. There is some promise on the horizon with updated comparative rating software that interfaces with MVR, credit score, and CLUE providers. Still, with some exceptions, the promise of SEMCI remains as elusive as ever.

Accepting the things we cannot change

At a recent conference, the leader of a prominent software provider reminded us that we should never expect a "perfect world" and that there will always be carriers both willing and unwilling to engage in fully functional interface portals. Even with its quirks, download is still an efficient delivery method that has, in some cases, replaced the paper copies that had to be filed away.

Even in the perfect upload-download SEMCI environment where the policy data starts and ends in the agency management system, there is still a need to maintain vigilance over policy accuracy. If quality control and verification of coverage are not part of your workflow-download or not-how accurate are your current files? What advice have you given your clients based on data that exists in that two-week lag time?

If your goal is to make your agency management system the primary source of client data, then the responsibility for keeping your data accurate is yours, not the insurance carrier's.

The author

Wanda Shumaker's company, WJS Consulting Group, provides practical insights into the effective use of agency technology. Since entering the insurance industry nearly 25 years ago, she has assisted more than 500 agencies while serving as a trainer for a major software vendor. She has also served as the automation manager for a large agency. Contact Wanda via e-mail at wanda@wjscg.com or visit her Web site: www.wjscg.com.