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TAARReport
T H E
May 2004
Volume 20 • Number 5
Inside TAARReport
Power Perspective • 1
Take advantage of multiple monitors
to increase your productivity. Setting
them up is simple – and the process
doesn’t have to be expensive.
A U T O M A T E D
A G E N C Y
R E P O R T
How to Install and Use
Dual Monitors
by Steve Anderson
Editorial • 2
The results are in! A recent survey
concludes that participants increased
their errorless production using multiple
screens and found the configuration
more useful than single screens.
T
Connections • 6
Companies like Hartford know the
value of multiple-line marketing.
Why can’t the independent agency
force follow suit?
multiple monitors.
Small Agency Power Corner • 8
Customers don’t care about how
much you spend on technology; they
care about how you use technology to
better serve them.
dragging open windows from one monitor to another or stretching a single
Glad You Asked • 9
What are some common uses for
PaperPort software?
Technology E&O • 10
Are you reasonably certain that your
files don’t contain any disparaging comments regarding your customers? Here’s
a quick guide on what should and
shouldn’t be documented in your files.
TechnoTidbits • 12
A judicious use of outsourcing can help
you be a low-cost operation.
Work.Flow • 14
Learn how your agency can move
towards a more sophisticated electronic
filing structure without having to
purchase additional software.
www.taarreport.com
he Windows operating system makes it possible for you to increase
your work productivity by expanding the size of your desktop. Using
Windows XP, you can actually connect up to 10 separate monitors to a single computer. Talk about multi-tasking! This article will provide you with
the information you need to set up a workstation that takes advantage of
Why use more than one?
Multiple monitors allow you to work on more than one task at a time by
window across numerous monitors.
With multiple windows open, you
can edit images or text on one monitor while viewing Web activity on
another. Or, you can open multiple
pages of a single,
long document and
Using Windows XP,
you can actually
connect up to 10
drag them across
several monitors
to easily view the
layout of text and
graphics. You can
separate monitors
also stretch a
to a single comput-
Microsoft Excel
er. Talk about
two monitors so you
spreadsheet across
multi-tasking!
continued on page 3
Editorial
Dual Monitors Should Be Your Next
Hardware Upgrade
Virtually every agency will be using some
type of electronic document management in
the not too distant future. It really is no longer
a question of “if,” but when. The evidence is
all around us. An increasing number of insurance companies are no longer sending agents
paper copies of client documents. Instead, they
are sending PDF files. An increasing number of
agencies are installing electronic document
management systems to help manage electronic documents and paper files. Yet one major
barrier still needs to be overcome before agencies will realize the full productivity benefits of
moving to electronic documents. This barrier is
the single monitor that sits on virtually every
desktop.
I am convinced that installing dual monitors
is an absolute necessity in order for agencies to
gain the full productivity improvements promised by managing documents electronically. The
problem is that paper is much easier to deal
with than documents viewed on a computer
screen. The use of paper is ingrained in the
agency culture. When faxes are received electronically, the user will most likely print them.
They have to. It is too difficult to toggle back
and forth between the fax program displaying
the document and the management system.
Dual monitors solve this problem. Dual monitors allow you to replicate the look and feel of
a piece of paper without needing to print.
Using one monitor, you can view a full size copy
of the fax. On the other, you can view the management system. You can finally use Windows
for what it was designed to do in the first place
— work in multiple programs at once.
Screen Displays, was conducted by the University
of Utah’s Department of Communication. Based
on the responses of 108 university and non-university personnel, the study results show that
respondents increased their errorless production
by 18% using multi-screen configurations.
Participants also considered multi-screen configurations significantly more useful than single
screens and preferred multiple monitor setups
on every measure of usability. They found them
29% more effective for tasks, 24% more comfortable to use, and 39% easier to move around
sources of information.
My own informal survey supports these conclusions. Cadenhead Shreffler Insurance, the
agency where I worked in Texas, started scanning all customer paper files in 1993 and
installed dual monitors on every desktop a few
years ago. Everyone wondered why they hadn’t
done it before. Another agent sent me a picture of his desktop using three monitors — one
for Outlook, one for Internet Explorer, and one
for his management system. Everyone I talk to
who has gone to dual monitors says they
wouldn’t go back.
Dual monitors can help any agency realize
significant gains in productivity — even if your
agency isn’t contemplating installing a full document management system. Just think about
the number of carrier Web sites your staff goes
to each day. Wouldn’t it be nice to be able to
look at the carrier Web site and your management system at the same time? For complete
details on how to set up dual monitors, be sure
to read the lead article this month. ◆
And the survey says…
A 2003 study, entitled Productivity and Multi-
2
TAARReport • May 2004
T H E
A U T O M AT E D
A G E N C Y
R E P O RT
TAARReport
MAY 2004
VOLUME 20 • NUMBER 5
Steve Anderson,
EDITOR
Andrea Serrette,
ASSOCIATE EDITOR
CONTRIBUTING WRITERS
Jack Burke
SOUND MARKETING, INC.
Ed Higgins
THOUSAND ISLAND AGENCY
G. Barry Klein
ULTIMATEINSURANCELINKS.COM
Laura Nettles
NETTLES CONSULTING NETWORK, INC.
Curtis M. Pearsall
UTICA MUTUAL INSURANCE COMPANY
Jenny Kabakovich,
BUSINESS MANAGER & HIGH-TECC COORDINATOR
Char Campbell, PRODUCTION
Sissi Haner, COPY EDITOR
Afni Insurance Services, WEBMASTER
© Copyright 2004 by The Automated
Agency Report, Inc. All rights reserved.
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WEB:
How to Install and Use Dual Monitors, continued from page 1
can view numerous columns
option is to purchase a card
without scrolling.
designed to handle multiple
One monitor serves as the
monitors. However, you can
primary display and holds the
experiment with the process by
logon dialog box that you use
scavenging a card from an old
when you start your computer.
computer that’s hidden in a
In addition, most programs dis-
closet somewhere. Two types of
play windows on the primary
cards are available: Peripheral
monitor when you initially open
Component Interconnect (PCI)
them. Different screen resolu-
or Accelerated Graphics Port
tions and different color quality
(AGP). Simply slip the card into
settings can be selected for each
an available slot in the computer.
monitor. Multiple monitors
Monitor: The second piece of
can be connected to individual
hardware you need is a second
graphics adapters or to a single
monitor. Again, you can go the
adapter that supports multiple
inexpensive route while you
outputs.
experiment with the process and
upgrade to a better monitor later.
Equipment
There are two pieces of hard-
If you are like me, you probably
have some old monitors sitting
ware you need to complete an
around your office. These should
installation: a video card and a
work fine and will allow you to
second monitor.
experience the benefits without
Video card: When choosing
spending additional money. The
a video card, two options are
problem with using older moni-
available. You can purchase a
tors is their size. Placing two 15-
new single video card with two
inch or 17-inch monitors on a
(or more) video out ports, or you
standard desk does not leave
can add a second card to your
much room for working.
A better idea is to purchase
two flat panel monitors that can
desktop computer. The consensus seems to be that the best
When you place two monitors
together, the distance between the
actual screen areas shouldn’t be a
[email protected]
[email protected]
distraction as you move back and
www.taarreport.com
forth between monitors.
3
Setting up multiple monitors is simple
and easy. It can cost almost nothing
(if you have old equipment you can
use) or less than $1,000 per workstation
(if you buy two new 17-inch monitors
and a new video card).
be placed side by side on a desktop. Fifteen-inch flat panel monitors are now available for about
$350 each. Seventeen-inch monitors (the best option) cost about
$450. When you are deciding
what monitor to purchase, look
at the size of the bezel. The bezel
is the piece that surrounds the
actual screen and it should be
as small as possible. When you
place two monitors together,
the distance between the actual
screen areas shouldn’t be a distraction as you move back and
forth between monitors.
You can also purchase monitors that are specifically
designed to work together.
Although this options is generally a little more expensive, it may
be worth saving the time and
hassle of putting together your
own system. Check out
www.9Xmedia.com and
www.go-l.com/monitors/ for
more information and pricing.
4
Installation
The installation process is
quite easy. Follow these directions to install a second video
card on your PC:
1. Turn your PC off and disconnect its power supply.
2. Find an open PCI slot (or AGP
if it’s not already in use) and
insert the video card.
If you’re using two PCI video
cards, the one nearest the CPU
will boot first. If you’re using
one AGP and one PCI, the PCI
will always boot first. In your
BIOS settings, you might be able
to manually determine whether
an AGP or PCI video card is
the master. You’ll have to poke
around in your BIOS to find
out. If you don’t know anything
about a PC’s BIOS, grab a friend
who does and see if he/she can
help. For a comprehensive
list of hardware supported by
Windows operating systems,
see Compatible Hardware
and Software in Help and
Support Center. Once the card
is installed, your computer
should recognize it without
any problems. If it doesn’t,
click Display Troubleshooter
for more information.
3. Connect your second monitor to the
new card.
4. Connect your
power supply to
your PC and restart
your machine.
Windows XP will
detect the new video
adapter hardware and
install the appropriate
drivers.
The boot process
determines which
card will be the
master or primary.
Jerry Kroggel of Greater Lexington
Insurance has three monitors on his
desk. He uses one for Outlook, one
for Internet access, and one for his
management system.
TAARReport • May 2004
Display, or you can minimize all
windows, go to your desktop,
Figure 1: The Display
Properties dialog box
allows you to set up
how multiple monitors
will work.
Dualview
On many portable computers
and some desktop computers
(those with two video ports
on one video card), you can
expand your display to a second
right click and choose Properties.
On the Settings tab (see Figure
1), click Identify and a large
number on each of your monitors will display, showing which
monitor corresponds with each
icon. Now click the monitor icon
that represents the monitor you
want to use in addition to your
primary monitor.
Select the “Extend my
Windows desktop onto this
monitor” check box, and then
click Apply or OK. This allows
you to drag items across your
screen onto alternate monitors
(see Figure 2). If the check box is
not displayed on your computer,
it may be because your video
adapter does not support
multiple monitors.
monitor by using Dualview.
Dualview is very similar to the
multiple monitor feature. The
difference is that when you use
Dualview on a laptop, your primary display must always be the
laptop’s LCD screen, whereas
with the multiple monitors feature, you can choose a
primary monitor.
Now that your computer is
running, configure the Display
Property settings to extend your
desktop to the second monitor.
There are two ways to access
these settings. You can click on
Start, Control Panel, and then
www.taarreport.com
Figure 2: Selecting the
“Extend my Windows
desktop onto this monitor” allows you to work
with multiple monitors.
You can rearrange the
positions of the monitors to
reflect their physical arrangement. Once you click OK or
Apply, you will be able to drag
an item on your primary desktop
across your screen until it
appears on the second monitor.
The arrangement of the icons
in the Settings tab window determines how you drag items from
one monitor to another. For
example, if you are using two
monitors and you want to move
items from one monitor to the
other by dragging left and right,
arrange the icons side by side.
On some systems you can
change which monitor is the primary monitor by clicking
on the monitor icon that represents the monitor you want to
designate as the primary one.
Select the “Use this Device as
the primary monitor” check box.
This check box will be unavailable if you cannot change the
primary monitor.
Setting up multiple monitors
is simple and easy. It can cost
almost nothing (if you have old
equipment you can use) or less
than $1,000 per workstation (if
you buy two new 17-inch monitors and a new video card). The
payback in increased productivity
is very short. This is an upgrade
well worth your while. Put it in
your plan today and implement
as soon as possible. ◆
5
Connections
by Jack Burke
Fear of Failure… or Fear of Success?
Don’t be afraid to sell additional coverages to your clients.
Over the past six months I’ve been working
with a “legend” in the personal lines arena —
Cosmo Conte. As a State Farm agent/agency
owner he climbed to the pinnacle of success
in my hometown of Cleveland. About 25
years ago, he moved to San Diego and did it
all over again in California. The secret to his
success was simple: multi-line selling.
Recently, we updated and repackaged a
combination book and audio program he
originally created in 1989. Although I knew
that the simple truths it contained were still
valid today, I’ve been amazed at the quantities that are selling. Agents across the country
seem to be looking for the magic formula
that will help them grow their agencies.
The reason I’m surprised by the demand
for this product is simple: saturation. After all,
every sales and marketing guru from George
Nordhaus on has been extremely vocal about
the need for agents to sell more than one
policy to their clients. For years, statistics
showed that the average American had 7.2
insurance policies — but agencies were only
averaging a little better than one policy per
customer. Whether you call it cross-selling or
multi-line marketing, the message has always
been the same. More policies per client mean
lower acquisition costs, higher client retention, and greater profits.
That being said, the question still remains
as to why agencies don’t put more energy
into cross-marketing additional policies to
existing customers. Are we afraid of the success it might engender… or are we afraid of
failure? Now, before members of the choir
6
(those who are cross-selling) rise up to say
that I’m wrong in my assessment, let’s take
a look at one consumer — me.
A case in point
When we arrived in California in 1984,
one of our first culture shocks was the cost of
automobile insurance. As a Farmers insured,
we contacted a local agent and learned that
the premium was nearly three times higher
than it had been back East. We paid the difference and chalked it up to the price of living in California — until the locals explained
that anyone in the know with a good driving
record was getting insurance from 20th
Century (now 21st Century). I made a call and
switched insurance providers in order to cut
my premium by more than 50% — I didn’t
have an agent, just an 800 number. During
that time period, we were never approached
about additional insurance by either the
Farmers agent or 20th Century.
Our second culture shock came when we
purchased our house. Our developer recommended both a mortgage company and insurance agent to us, and we used both. Other
than annual statements, we never heard from
the agent who provided our homeowner’s
insurance.
The third culture shock arrived as our
children started turning 16. 20th Century
wasn’t interested in insuring teenage drivers
and indicated that with skyrocketing premiums. That’s when a Mercury agent came to
the rescue and kept our insurance as reasonable as possible. Plus, we now had a real, live
TAARReport • May 2004
agent to represent us.
In the meantime, we started Sound
Marketing and needed business insurance.
Since we really didn’t have a meaningful relationship with anyone other than our auto
insurance agent, we followed the recommendation of our attorney and got insurance
through a local independent broker. Acknowledging that we were a small account, he also
explained that our primary (only) contact
would be with the CSR staff — not him.
During this time, we also purchased health
insurance. I called our auto agent to see if he
handled other personal lines, such as health
coverage. He said he did and he wrote the
policy — but remember, I had to proactively
call him to find out if he represented any
health companies. That’s not cross-selling. In
later years, he sold his health book to another
agent whom I’ve never met, although he gets
his commissions on a regular basis from our
premium payments.
Too many agents
As the years progressed, we now had one
agent for business, one for home, one for
auto, and a fourth for health insurance. Not
one of them has tried to cross-sell anything to
us. The only extraneous message came from
the original Farmers’ agent we had long since
discarded. His letter explained that auto insurance had become too competitive and he had
sold his agency in order to “become” a life
insurance agent. To his credit, he was a persistent life insurance agent and eventually
sold life policies to both my wife and me.
He’s still our life agent today — but he’s
never attempted to sell us any other
financial services package or coverage.
So, there we were with five basic coverages
and five agents. The only anomaly was that
these agents had retained our business
despite lack of communication or concern
www.taarreport.com
Companies like Hartford
know the value of multiple-line marketing. Why
can’t the independent
agency force follow suit?
about our needs. So when I saw an AARP/
Hartford mailer about home insurance, I
made contact with them. In one short phone
call, they quoted a home policy. When they
learned we had moved our offices into a wing
of the house, they quickly requoted it for
both home and home-based BOP coverages.
After I told them to write the policies (two
agents immediately liquidated), they came
right back and asked about my automobile
coverage. The only reason I didn’t give that
to them is because of the nature of my cars
(there are some classics involved and I didn’t
want to go through the hassle of new
appraisals, etc.).
Companies like Hartford know the value of
multiple-line marketing. Why can’t the independent agency force follow suit? In today’s
increasingly competitive world, success requires
that you maximize the potential value of each
and every client to your agency. ◆
Editor’s note: Next month, Jack will discuss
how you can communicate the cross-selling
message and begin selling additional coverages to your clients.
Jack Burke is the president of Sound Marketing,
Inc., editor of ProgramBusinessNews, host/producer of Audio Insurance Outlook, and author of
best-selling books on marketing, customer
relations, and service. He can be contacted at
[email protected] or 800.451.8273
7
Small Agency
Power Corner
It’s Not About Technology
by Ed Higgins
O
ne interesting observation
about technology applications is that agents have focused
strongly on improving efficiency.
Many agencies and other businesses have embraced one such technology tool — automated attendants — as a way to eliminate the
expense of a live attendant.
Technology gone wrong
If you’re anything like me,
I’m sure you’ve had your share
of not-so-wonderful experiences
with automated attendants.
There are two that stand out in
my negative memory, and I try
not to keep negative memories
about anything. The first is a
recent experience that involved
carefully listening to the attendant’s directions, which included a warning along the following lines: “Don’t press any keys
because we recently changed all
of our selection options to make
sure that your attempt to speed
through this process will fail in
connecting you to your desired
destination.” I also recently
engaged a system that warned:
“Pressing zero will not transfer
you to the operator.”
After listening to these types
of instructions and disclaimers,
it seems that you invariably
make a couple of selections and
ultimately press the wrong button by mistake. At that point,
you realize you have gone off
track and are lost in the woods,
with no option except to hang
up and try again. Sometimes,
you get all the way to the end
of the selection tree and discover
that the destination does not
provide the service you seek.
If you’ve had a similar experience, it must have occurred to
you that any efficiency gained
It is important to always remember that
the customer cares little or nothing about
from this system comes from the
perspective of the vendor, not
the customer. While a simple
automated attendant system
may provide a level of customer
satisfaction, an extended selection tree frustrates most typical
customers. Usually, people make
phone calls because they want
personal contact. A poorly implemented automated attendant
creates the opposite experience.
Technology gone right
Over the past several years,
we have migrated to a totally
paperless office environment.
When clients come to our office,
they are surprised to find a large
motion-activated train in our
vestibule. It runs for about 30
seconds and creates an interesting conversation piece. We use
the train to explain a fundamental concept to our prospective
clients: all the technology they
see in our office enables processes they will enjoy if they do
business with our agency.
For example, we explain to
how much we spend on technology.
continued on page 11
8
TAARReport • May 2004
Glad You Asked
by Steve Anderson
What Are Some Common Uses
for PaperPort Software?
This month’s question comes from
Harwood & Son Insurance (www.harwood
ins.com) in Farmville, VA:
We have purchased a current version of
ScanSoft’s PaperPort software but are not
sure what to do with it. So far, we have only
used it to convert Word documents to forms
or to create PDFs. Can you give us some ideas
of how we should be using it?
Answer
We have recommended PaperPort software
for many years as a tool for helping manage
and control access to scanned paper documents, as well as other electronic documents.
ScanSoft Inc. has recently released an updated
version of PaperPort — Pro 9 Office, which is
available directly from ScanSoft (www.scan
soft.com) or from most software retail stores.
This new version includes the ability to create
and manipulate PDF files. While we don’t recommend PaperPort as a full document management solution for most agencies, it does
provide great value for easily manipulating,
storing, and retrieving various types of electronic documents. Here are three ideas:
Carrier Submissions: We have used
PaperPort to streamline the creation of electronic submissions as a single electronic document. When the software is installed, several
new “printers” are added to the printer dialog
box. These virtual printers allow you to “print”
any document from a Windows program to the
PaperPort “desktop” as an electronic image.
www.taarreport.com
This means that ACORD applications can be
printed from your Windows-based management
system, Word documents can be printed, loss
runs can be scanned or printed from a carrier
Web site, and any other document can be converted into a common electronic format. These
individual documents can then be combined
into one document simply by dragging and
dropping them onto each other. With Pro 9
Office’s ability to work directly with PDF files,
the new submission can be easily converted into
a PDF file and then e-mailed to the underwriter.
Resource Library: Every agency maintains
a file of articles, newsletters, and other documents that are valuable resources for staff to
refer to when they need help. The problem
with this approach is finding the information
when needed. By scanning these documents
and letting PaperPort turn them into text
through its OCR (Optical Character
Recognition) process, a specific document
can be found using a simple search process.
This allows an agency to maintain valuable,
searchable information in one place.
Form Typer: Another program included
with PaperPort is called Form Typer. This
program allows you to type information on
top of an existing image and enable it to
become part of that image. This is useful
when you need to complete a non-standard
application or form and is much easier than
going to that last typewriter in your office
to complete an application. ◆
9
Technology E&O
by Curtis M. Pearsall
What Do Your Files Say About Your Clients?
For years, you have heard speakers at loss
control seminars talk about documentation
and how it can impact the resolution of an
E&O claim. Many articles have also been
written on the subject. It is probably fair to
say that there is no one piece of loss control
advice as powerful as the art of how to
successfully document.
The most common type of E&O claim
involves “failure to provide the proper coverage.” For years, I have been of the opinion that
agents do have conversations with their clients
about the need for higher limits or a specific
type of coverage. Unfortunately, these conversations are not documented and when a claim
occurs, it becomes the agent’s opinion against
that of the client. Although it might seem that
these are even odds, in most cases, agents are
more likely to lose the case than win it.
This information is not anything you
haven’t heard before. However, has anyone
ever provided you any advice or guidance on
what should be documented? Or how about
what should not be documented? There are
some definite rules of thumb that should be
followed. For the sake of this article, I am
going to address the issue of electronic
documentation, as opposed to paper. Yet in
many cases, the rules are the same.
What should be documented?
Most agency staff have a pretty good idea
about what should be documented. Typically,
conversations your staff have with the clients /
prospects should be noted with times, dates,
and the essence of the conversation. An
example is: “Spoke with Mr. Jones on the
additional limits for Jones Trucking and he is
undecided at this point and will get back to
me in another week or so.” Ideally (time permitting), it would be wise to send Mr. Jones
a letter confirming the conversation. These
types of conversations should also be entered
in a diary so staff can follow up and make
sure the issue is resolved.
In this day of electronic communication,
it is likely that you will receive e-mails from
your customers / prospects as well as from
your companies. These should be handled the
same way you would handle a paper memo
or phone call. Full documentation of the file
means full documentation. Memos, whether
in electronic, paper, or phone format, need
to be documented.
What shouldn’t be documented?
Are you reasonably certain
that your files don’t contain
any disparaging comments
regarding your customers?
10
The goal is to have documentation that is
honest and objective. What is the nature of
documentation in your electronic files? A
general rule of thumb to follow is to assume
that anything that is documented in your files
can (and probably will) be subpoenaed in the
event of an E&O claim. Now, using this rule of
thumb, how comfortable do you feel? You
TAARReport • May 2004
may say that you have no concerns for your
agency. Here, then, is a true story. I received a
phone call from a producer who documented
in the file not to advise a particular client to
buy a specific coverage because the client
couldn’t afford it. If a claim had occurred that
would have been covered by the coverage not
offered, this type of documentation would
have been extremely damaging. Obviously,
the best advice in this scenario is to offer
coverage and let clients decide whether
they can afford it or not.
Are you reasonably certain your files don’t
contain any disparaging comments regarding
your customers? Whether comments of this
nature do or don’t impact the resolution of
an E&O claim is immaterial. They are not
appropriate and should not be condoned.
If you are unsure of what’s in your files,
take a look at a number of files involving
each of your CSRs. If you have a procedures
manual, there should also be a section dedicated to this subject. If you don’t have a
manual, make sure your staff knows the dos
and don’ts of file documentation. ◆
Curtis M. Pearsall is vice president and director of
Errors & Omissions for the Utica Mutual Insurance
Company. He oversees the underwriting, marketing, services, and claims divisions of the Utica E&O
program. He can be reached at 800.274.1914 x
2543 or [email protected]
It’s Not About Technology, continued from page 8
clients that they will have access
to their insurance account via
the Web and e-mail access to
their assigned client serviceperson. We provide live access to a
designated customer representative, with a back-up of modified
rotational servicing that enables
resolution to their inquiries during their first call. We explain
that our 24-hour claims service
is made possible through a technology application but results in
a live return phone call from an
agency representative.
When clients look around our
office, they see that we have flat
screen monitors and no filing
cabinets. Staff can work without
leaving their desks. The impression created is one of controlled
power, and most people sense
the special quiet environment.
After giving clients an explanation of the technology we use,
we move to a risk management
www.taarreport.com
assessment of their account and
the annual coverage review that
we will perform every year their
policy renews with our agency.
It’s usually at this point that we
stop the conversation and point
out that this entire process is not
about the technology that is pervasively evident throughout the
office. It’s about the value-added
service of personal risk consultation and personal contact
through as many different communications channels as possible. That is the real basis of our
work, and the primary reason
clients want to do business with
us. It is not about technology.
Technology exists to support
the backroom processes and
facilitate personal service. Our
entire technology platform is
designed with the goal of creating a better experience for the
customer — from the customer’s
perspective. Consistently, this
brings a broad smile of approval
from clients, who quickly admit
that they have little or no real
interest in our technology platform. It is the personal contact,
risk management counsel, and
relationship that they seek and
desire to establish.
Effectively implemented technology applications afford us
time to spend face-to-face with
clients. It is important to always
remember that the customer
cares little or nothing about how
much we spend on technology.
Rather, they make their decisions
based upon the net value they
perceive in the relationship. ◆
Ed Higgins, CPCU, is an active
agency principal with over 28
years of experience. He is also
an agency technology workflow
consultant. He can be contacted
at [email protected] or
800.453.8917
11
Techno•Tidbits
by G. Barry Klein
How to Outsource Your Small
Programming Jobs (Abroad)
Before I jump into the meat of this article,
here are two comments:
1) This isn’t an article about the merits or
evils of outsourcing. Instead, here is my
opinion on that debate: It’s a world economy now; stop whining and deal with it.
2) For the record, I have five people who
“work” for me, for all or most of their
income. The two people in the United
States received 80% of the money I paid
out. The three abroad, two in Romania
and one in Russia, received 20% and did
100% of my programming, and probably
90% of the work (based on hours) of all
five. If it weren’t for those three, the two
here wouldn’t have jobs with me.
So, here’s what this article is about. Shortly
after I started my business, I found out that
someone in our industry (whom I admire) had
already started a similar project, with three
times the funding and with a big company
behind him. He paid his programmers $75 per
hour, ran out of funding before finishing, and
went out of business. I figured that there must
Here’s the catch: You’ll
mostly deal with programmers in India, Russia,
Romania, and a lot of
countries where English
isn’t the primary language.
12
be someplace, similar to a job posting board,
where programmers bid for jobs, and Google
helped me find several of them. My programmers earn about $5 per hour, are happy to get
that rate, and my project was completed on
time, on budget, and I’m now successfully in
business.
Programming for less
There are many of these programming
posting boards. The biggest seems to be
eLance, but I chose ScriptLance, which seemed
to focus on the kind of small projects I needed. To date, I’ve done hundreds of small jobs,
averaging $50 per job, with a few as inexpensive as $10 and a few as expensive as $1,000.
Basically, ScriptLance operates as a reverse
version of an eBay auction. On eBay, you put
your ‘tchotchky’ (Pez container or whatever)
up for sale, bidders see each successive bid,
and the price bids up until someone buys it.
On ScriptLance, you put your job specifications up, and each successive bidder (usually)
bids lower, until you see a bid you like and
choose it, ending the bidding.
Like eBay, there is a “rating” system for
both the programmers and Webmasters (you
don’t have to actually be a Webmaster to put
a job up for bid). At the end of each project,
both programmer and Webmaster are asked
to rate each other on a scale of 1 to10, and
write some comments. Before choosing a programmer, you can see how many jobs he has
done (or they; many are teams), what type,
and how others have rated him. Similarly, one
look at my ratings — a perfect series of 10s,
TAARReport • May 2004
with comments like “Great to work for, pays
quickly, great communication” — and programmers are happy to bid for my work.
You open an account on ScriptLance by
depositing money using a credit card, PayPal,
or sending a check. The cost to post a job is a
flat $5 (charged only if/when you choose a
programmer for the job), and the programmer is charged a small fee on his end when
he gets paid (in his local currency). There is
also an escrow system available, since most
programmers don’t know the Webmasters,
and might worry about getting paid. Because
of my high rating, I’ve only been asked once
to escrow the funds, and I did.
The catch?
Here’s the catch: You’ll mostly deal with programmers in India, Russia, Romania, and a lot
of countries where English isn’t the primary
language. It is critical that you write absolutely
clear specifications, and have the patience to
explain things (such as what a ZIP code is, or
that some of them have leading zeroes) that
they might not know. I recommend that you
actually create the specifications in a word
processor and review it several times before
pasting it into the job entry form.
Soon after posting the job, bids will start
coming in. Although a posting can last a
week, I usually pick someone within 8 - 12
hours, often within minutes. That “freezes”
the project, the programmer gets notified
that he has been chosen, and “accepts” the
job. Then, ScriptLance notifies each of the
other’s e-mail address. Invariably, the programmers have Instant Messenger, but I
don’t like IM so I deal only with e-mail.
Only twice have I had programmers in
North America (one in Minneapolis, one
in Toronto) where I could call, but 99% of
my jobs have been done in India, Russia,
Romania, or New Zealand.
Over the last two years, I’ve developed
relationships with three programmers who
www.taarreport.com
Programming Boards:
www.scriptlance.com
www.elance.com
www.projectspring.com
www.allfreelance.com
www.freelanceworkexchange.com
have learned to do my jobs the way I want
them. Now, I send the jobs directly to them,
but still pay them through ScriptLance. Since
they know what to do, I can just send them
the barebones information, and they do it.
Two of them make their primary living
working for me.
Here is a simple example of how I use
ScriptLance. A customer sent me an HTML page
that was centered (appropriate for the Web)
and I needed to left-justify it for e-mail. I couldn’t do it, to save my soul, even though justification is usually just a single mouse click. After
wasting 45 minutes, I slapped myself on the
forehead and went to ScriptLance. I put a copy
of the file on my Web site, posted a job with
the link and a request for someone to left-justify the file, looked at the clock, and went to do
my e-mail. Eleven minutes later I checked, and
there were four bids, starting at $30 and two of
which were for $10. One said, “I’ve done the
work. Send me $10 and I’ll send you the corrected file.” I chose him, and five minutes later had
the fixed file. I’ve since sent him — a young programmer in India — several other HTML jobs.
It is a brave new world, folks, but the
economic law that says “the low-cost provider
always wins” still applies. Judicious use of outsourcing can help you be a low-cost operation. ◆
G. Barry Klein is a former insurance agent who
maintains the www.ultimateinsurancelinks.com
Web site as an industry service. He can be reached
at [email protected]
13
Work.Flow
by Laura Nettles
Information Management Part 2:
Electronic Filing Options
Editor’s note: Part 1 of this series, Building
A Firm Foundation, appeared in last month’s
issue. These articles summarize the Best
Practices Guide to Information Management
developed by Laura Nettles with The Agent’s
Council for Technology (ACT) and the IIABA
Council for Best Practices.
Sometimes I miss the good old days —
when you were only a phone call away.
Documentation was simple. We talked and
confirmed things in writing. I had a simple
three-part form that I used to summarize conversations. The original went to the customer,
underwriter, or agent. The yellow copy went
into my file. And I had an extra pink copy for
suspense. Things were simple then.
That was then. This is now…
This is the Information Age. Information is
coming from everywhere at lightning speed.
We get e-mail, voice mail, and snail mail. We
talk via cell phones, chat rooms, and Web
conferences. We send documents electronically as PDFs, JPGs, and TIFs. Sometimes we don’t
even send the document at all — we just send
a link. It’s amazing and, if you’re in charge of
quality management, very scary.
There are a variety of options available
to assist agencies in moving towards a more
sophisticated electronic filing structure. These
include transactional filing, scanning or a
combination of these. Also, the agency management system typically offers a variety of
features to assist the agency in storing infor-
14
mation electronically. These features typically
come in the form of attachments for e-mails,
Word documents, and spreadsheets.
In this article, we will review the different
electronic filing options that are available
to most agencies today, without having to
purchase additional software solutions. The
following solutions are designed to give
agencies the biggest bang for their technology dollars and to prepare agencies for more
sophisticated document management software programs.
Types of files
In the world of electronic information
management, there are many places you can
store information. Agency management
system vendors originally delivered systems
designed for accounting and databases. Now,
vendor systems have evolved and offer a variety of options for storing information about
your clients.
Let’s define “information.” Information is
anything about your clients that you wish to
retrieve at a later date or need to store to
avoid E&O. This includes all communications
with your clients and carriers regardless of
the media — phone, fax, paper or e-mail.
Information includes data, correspondence,
meeting notes, and all supporting documentation for routine insurance transactions (certificates, endorsements, renewals, claims, etc.).
We all know that in insurance, this can represent a boatload of information. Let’s review
the different options available.
TAARReport • May 2004
Pros
Cons
Provides access to all client information in
one place. Has the potential to eliminate
paper.
Agency management system may limit the
types of files that can be attached. Capability
is needed to attach .pdf, .jpg, .html, .tif,
Word, and Excel.
Organizes incoming e-mail, attachments,
and e-faxes simplifying retrieval events.
Some systems do not have adequate
coding available for organizing documents.
They may not be sophisticated enough for
larger, more complex clients.
Feature already exists and is therefore
not costly to implement.
Attachment workflow may be cumbersome.
Figure 1: Things to consider when evaluating attachment features.
Attachment features
These features are available on your
agency management system. They include
the ability to attach incoming and outgoing
e-mails and e-faxes, Word documents, and
spreadsheets. Some systems make the attachment part of an activity while others make
the attachment part of the client. Usually, the
attachment can be related to a specific policy.
Most vendor systems today also offer electronic storage for outbound correspondence.
Typically, this feature is available via a Word
integration feature. This means the data from
the agency management system prefills Word
documents (typically schedules and proposals).
These documents can be edited and stored as
attachments. See Figure 1 for considerations
when evaluating attachment features.
From an E&O perspective, it’s important
to note whether or not attached documents
may be locked from editing. On some systems, attached documents can be edited.
Also, keep in mind attached documents
will have to be preserved as your system is
Pros
Cons
Most of insurance processes can be completed without pulling a paper file. It takes a
fraction of the time to get the information
out of the computer than to get it out of
(and return it to) the paper file.
Not effective if computer does not contain
all information about a client. Retrieval of
paper on a regular basis is cumbersome.
May not be the best solution for complex
commercial accounts.
Drastically improves database integrity
because staff is forced to rely on computer.
Recreating a client file for legal proceeding
can be cumbersome.
Improves the quality of customer service by
providing fast access to client information
online. No more pulling files. No more
misplaced files.
Does not allow for electronic correspondence. Assumes all transactions are paper.
Figure 2: Things to consider when evaluating transactional filing.
www.taarreport.com
15
Pros
Cons
Improves the quality of customer service by
providing fast access to client information
and supporting documentation online.
Does not allow for electronic correspondence. Addresses only paper transactions
as scanned transactions.
Eliminates need for costly filing cabinets.
Also reduces floor space requirements.
May be difficult to implement if agency has
remote offices.
Document imaging features can provide
for electronic submissions eliminating
costly preparation and mailing costs.
Lack of coding options may make it difficult
to implement for complex commercial
accounts.
Facilitates sharing of documents.
Variety of implementation options requires
a lot of pre-planning.
Figure 3: Things to consider when evaluating imaging solutions.
upgraded or enhanced. Once you begin using
the attachment features, it will be difficult to
switch agency management systems.
Transactional filing
This revolutionary idea came into being in
the mid 1980s as a result of the implementation of agency management systems and key
features such as download and database. The
concept was based on the idea that once a
piece of paper is processed on the computer,
it should not need to be retrieved. Therefore,
the paper is filed by date processed instead
of by client. See Figure 2 for considerations
when evaluating transactional filing.
From an E&O perspective, document
retrieval is difficult to control in a transactional filing environment. Paper documents
retrieved may not get filed in the correct
place. Electronic documents may require
opening each document to locate the correct
document. Also, many agencies maintain original policies for “occurrence” policies. In a traditional filing system, these policies are pulled
when achieved. In a transactional filing environment, the archive process is eliminated.
Document imaging
Document imaging, sometimes referred to
16
as scanning, offered the promise of a paperless office. However, document imaging is
simply just another filing option. It is an
important option and offers many benefits.
However, document imaging alone will not
result in a paperless office. Implemented
properly, document imaging facilitates the
retrieval of paper documents. Instead of filing
paper transactionally by date or by client, the
paper is scanned. See Figure 3 for considerations when evaluating imaging solutions.
Security is usually solid on scanned images
— they cannot be edited. However, legal
precedent for accepting scanned images as
originals is still unclear.
Electronic filing options offer many benefits, but they fall short in many areas. The
most important advice is know what you
have and use it appropriately. Keep filing
and stay tuned. ◆
Laura Nettles is on a mission to maximize
independent agency performance. She believes
that without proper implementation and workflow
planning, an agency will never reap the full
benefits of technology. Nettles is a member
of the TAAR Network and can be reached at
[email protected]
TAARReport • May 2004
www.taarreport.com
Resources
Vendor Contacts
AMS Services, Inc.
800.444.4813 • Windsor, CT
www.ams-services.com
Applied Systems, Inc.
800.999.5368 • University Park, IL
www.appliedsystems.com
Ebix, Inc.
800.433.5744 • Atlanta, GA
www.ebix.com
DORIS Insurance Systems
800.282.3394 • Alpharetta, GA
www.dorissystems.com
InStar Corporation
800.736.1425 • Kennewick, WA
www.instarcorp.com
irs-aims
800.876.1466 • Universal City, TX
www.irsaims.com
Keal Technology
800.268.5325 • Concord, ON
www.keal.com
MI-Assistant
800.755.2329 • Eleva, WI
www.mi-assistant.com
Strategic Insurance Software, Inc.
800.747.7005 • Gahanna, OH
www.sisware.com
Terrace Consulting, Inc.
(888) 269-6200 • Oakland, CA
www.terrace.com
VRC Insurance Systems, Inc.
818.707.4295 • Westlake Village, CA
www.vrcis.com
XDimensional Technologies, Inc.
800.789.2567 • Brea, CA
www.xdti.com
Association Contacts
Independent Insurance Agents &
Brokers of America (IIABA)
800.221.7917 • Alexandria, VA
www.independentagent.com
Professional Insurance Agents (PIA)
800.742.6900 • Alexandria, VA
www.pianet.com
www.taarreport.com
ACORD
800.444.3341 • Pearl River, NY
www.acord.org
IVANS, Inc.
800.288.4826 • Greenwich, CT
www.ivans.com
CSIO – The Centre for Study
of Insurance Operations
416.360.1773 • Toronto, ON
www.csio.com
AIMS Users Group, Inc. (irs-aims)
Mark Willingham, President
TEL 915.365.2516 • FAX 915.365.3667
www.irsaims.com
VIP-VRC’s Insurance Partners (VRC)
Bob Pachner, President
TEL 212.338.2526 • FAX 212.682.3299
www.vrcis.com
The TAAR Network…
User Group Contacts
AMS Users’ Group (AMS)
Susanne Ruffner, Executive Director
TEL 972.929.8803 • FAX 972.915.2863
www.amsug.org
Applied Systems Client Network
(Applied Systems)
Bill Jenkins, Executive Director
TEL 407.869.0404 • FAX 407.869.0418
www.ascnet.org
Ebix Users Association (EUA)
(Ebix, Inc.)
Debbie Hawkins, West Coast, Co-Director
TEL 805.529.1165 • FAX 805.529.1916
Kathy Ginkel, East Coast, Co-Director
TEL 407.932.0084 • FAX 407.932.0089
www.eua.org
ANeU (Affiliated Network of Ebix Users)
Kitty Ambers, Executive Director
TEL 804.674.4899 • FAX 804.276.1300
www.ebixusergroup.com
DORIS User Group (DORIS)
Oscar Page, President
TEL 937.461.5563 • FAX 937.461.7592
www.dorissystems.com
InStar Users Group (InStar)
Kathy Ginkel, Co-Director, East Coast
TEL 407.933.7879 • FAX 407.932.0089
Debbie Hawkins, Co-Director, West Coast
TEL 805.529.4313 • FAX 805.529.1821
www.instarusers.org
consists of insurance and business
professionals with a wide range of
talent and expertise. The following
individuals are available for consulting,
training, and speaking:
Steve Anderson
[email protected]
• technology audits
• rent-a-CIO
• imaging technology
Nettles Consulting Network
[email protected]
• workflow consulting
• automation implementation
• managing change
Mark Parrish
[email protected]
• automation selection
• LANs and peripherals
• internal systems, operations
Michael J. Weinberg
[email protected]
• marketing and sales
• agency management
• incentive-based compensation
Tim Woods
[email protected]
• custom Internet development
• application software development
• Internet business consulting
MI Management System Resource Group
(MI-Assistant)
Dave Deetz, Resource Group Director
TEL 715.287.4262
www.mi-assistant.com
For more information about the
TAAR Network or referral to specific
members, contact…
National Association of S.I.S. Partner
Agents, Inc. (NASPA)
Craig A. Munson, CIC, President
TEL 815.756.8565 • FAX 815.756.1936
www.partneragents.com
The Automated Agency Report, Inc.
PO Box 6218
Broomfield, CO 80021-6218
TEL 303.404.0457
FAX 720.294.9797
[email protected]
17
TAAR Confidential
We launched TAAR Confidential a couple of years ago as an additional subscriber benefit.
Since that time, it has been delivered as a monthly e-mail. However, due to the increase in junk
e-mail everyone is receiving and the difficulty in keeping subscribers’ e-mail addresses current,
we have decided to change the format. TAAR Confidential will now be available at any time
on the subscriber-only section of the TAAR Web site (www.taarreport.com). To access it, simply
log onto the site, click Online Community on the home page and then Confidential. New
material will be posted on an ongoing basis and will include random rants, musings, observations, reviews, comments, and recommendations on things, mostly technology related. I will
also share what I am reading, the new toys I am playing with, what I am thinking or writing
about, where I am speaking or traveling to, and whatever miscellaneous projects I may or may
not be working on. ◆
Mark July 18 to 21, 2004, on Your Calendar Today!
Steve Anderson invites you to:
HIGH-TECC 2004 is the best place to learn what
“Embrace the Future” at HIGH-TECC 2004,
July 18-21 in Vail, Colorado
…the industry’s most unique event for agency
and company insurance professionals.
Check it out at . . . www.taarreport.com
Early
Registration
Savings
FOUR EASY WAYS
TO REGISTER ➢
Phone
303.404.0457
you need to know to take charge of your
organization’s technology future.
“HIGH-TECC provides a great opportunity to learn
about the latest agency technology developments and
to have the chance to share experiences with fellow
agents and company and industry representatives.”
Jeff Yates, Executive Director,
IIABA’s Agents Council for Technology (ACT)
Mail
PO Box 6218
Broomfield, CO 80021-6218
FAX
720.294.9797
Online
www.taarreport.com
Name ____________________________________________________________________ TEL ____________________________________________________
Company ________________________________________________________________ FAX ____________________________________________________
Address __________________________________________________________________ E-Mail __________________________________________________
City/State/ZIP ______________________________________________________________________________________________________________________
Will you be bringing your spouse/significant other and/or family members?
(Additional meal and activity tickets will be available at registration) ______________________________________________________________________
Registration Fee: includes conference-sponsored meals
(Sunday reception & Tuesday dinner, all breakfasts and
lunches), breaks, and materials.
■ Before May 14 1st Registration $635 Add’l Registration $585
■ After May 14 1st Registration $735 Add’l Registration $685
Note: Camp registration fees do not include hotel accommodations.
Remember, you can register online using our secure
Web site by going to www.taarreport.com
Payment Method: ■ Check/MO ■ Bill me ■ Credit Card
HIGH-TECC registrations may be canceled until midnight, July 1, 2004. A $100
service fee will be assessed. After July 1, 2004, no registration fee refunds.
Send to:
The Automated Agency Report, Inc.
PO Box 6218 • Broomfield, CO 80021-6218
TEL 303.404.0457 • FAX 720.294.9797 • www.taarreport.com
18
TAAR504
TAARReport • May 2004
Bits&Bytes
by Steve Anderson
Laptop Theft Puts Customer
Data at Risk
Cyber Security Tools
for Businesses
A division of GMAC Financial Services has
been quietly informing about 200,000 of its
customers that their personal data may have been
compromised due to the theft of two laptop computers from an employee’s car at a regional office
near Atlanta. GMAC Insurance sent a letter to
customers affected by the theft telling them that a
“random theft” of the laptops from a locked vehicle may have left them vulnerable to identify theft.
The letter says the stolen laptops contained customers’ names, addresses, dates of birth, Social
Security numbers, credit scores, marital status,
and gender. GMAC recommended that the customers place a fraud alert on their credit files.
The company is reviewing its policies in light
of this incident. GMAC Insurance now prohibits
employees from transporting “certain types of
information” on laptops and is evaluating new
encryption technologies, among other approaches.
Data on the stolen laptops was password-protected
but not encrypted and was being used for a market
research project.
This is just the latest in a series of incidents
that have put personal data at risk. In recent weeks,
Citibank Japan, H&R Block, BJ’s Wholesale Club,
and a Utah accounting firm have had data lost or
stolen — data that could be exploited by identity
thieves. The FTC estimates that identity theft cost
businesses $33 billion in 2002. Under a law passed
last year in California, companies doing business
in that state are required to notify any customers
who are state residents of any improper release
of their personal data. Sen. Dianne Feinstein, DCalif., has introduced a similar bill at the federal
level. Make sure you take steps to protect client
information contained on laptops or any other
devices that are carried outside the office.
The National Cyber Security Partnership Task
Force is a coalition of private and public organizations that promotes a comprehensive national awareness program to help all Americans —
businesses, workforces, and the general population — to secure their own parts of cyberspace
(see www.cyberpartnership.org). In support of
that mission, nuServe has created a free cyber
risk-profiling software suite for small and medium-size businesses with small or no IT departments. The software suite, called Cyber
RiskProfiler™, takes the business through a
series of questions that will help determine
how well they are dealing with cyber security
issues within their organization. Try out the
survey by visiting https://www1.nuserve.com/
nuserve/cybercustLogin.jsp.
Afni Insurance Services Introduces
New Web Engine Module
Afni Insurance Services has added a new
Forms Designer module to enhance their existing
AIS WebEngine™. This new module enables an
agency to create forms for their Web site. Using
the Web-based Forms Designer, users can create
fields, tables, and columns and replicate the look
of actual forms and renewal questionnaires. The
forms module is designed to be simple to use
and easy to learn. Love, Douglas & Pope, a
Georgia-based agency, added new functionality
to their Web site by adding a claims form that is
sent directly to the claims representative, as well
as a franchise application that streamlines the
process of applying for franchise insurance (one
of their niche markets). The AIS WebEngine
allows an agency to update its Web site without
having to learn a programming language.
ARIAS Changes Name and Logo
The Association of Redshaw Insurance Agency Systems users (ARIAS), an agency management system user
group founded over 25 years ago to support the interests of Redshaw system users, unveiled both a new name —
Affiliated Network of Ebix Users (ANeU) — and logo. ANeU will continue to provide information, education, and support to the Ebix, Inc. family of users, which will now include EbixELITE, EbixONE, and EbixASP. ANeU’s mission is to
serve as a national organization dedicated to providing system-specific education, general technology information,
and ongoing support of the interests of Ebix users. Their new Web site is www.ebixusergroup.com.
www.taarreport.com
19
Page from the Past
That Was Then, This is Now…
Eleven years ago, TAARReport featured
a column that warned agencies that the
potential for errors increases when more
people have more access to more automation. In other words, although technology
brings speed, convenience, versatility, and
productivity, it can also become the breeding ground for problems.
“Not so long ago, before the days of a
PC on every desk, the office information
production process was simpler — primarily
because it was limited to only a few people,” wrote TAAR. “Much like the scribes of
ancient times who were skilled in writing,
the 20th century secretary possessed the
unique ability to produce written information, a task made more efficient with typewriters and word processors.”
In the “old” days, said TAAR, errors could
easily be traced to a few people. In today’s
world, where everyone has access to the
same technology tools, the potential for
human error has increased and is less easily
traceable, thus making it ever more important to implement workflows, processes,
and procedures in your agency.
“Information production is often taken
for granted because it is such a routine
office activity,” concluded TAAR. “Yet, as
more people have more access to more
technology it will become increasingly
important to view information production
as a distinct activity to be managed.
Successful service businesses become and
stay successful through well-conceived and
well-managed information production
practices.” ◆
PERIODICALS
PO Box 6218
Broomfield, CO 80021