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12 Cards in this Set
- Front
- Back
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The 3 objectives of utilizing technology: |
1) enhance profitability brokerages using modern technology tend to have higher profit margins (reduction in labour costs) 2) build client relationships enables brokerages to target the most appropriate market segments and to create relationships with clients. 3) improve effectiveness reduces administrative tasks and frees producers to sell and serve clients, standardizes office procedures, and reduces E&O exposures. |
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Broker management system includes: |
CPA ACTS 1) client file database should provide easy access to past quotes, current active files, accounting info, contract activity, claim info, etc. Should allow for flexible, accurate and quick access to information it contains. Accurate information, which relies on those who enter the information to do so correctly. 2) product management the rating function supports the process of issuing quotes and proposals, brokers should be able to issue several quotes from the same application without re-entering data. (Avoids duplication) Technology allows brokerages and companies to electronically exchange information…. This communication is known as brokerage-company interface. 3) accounting 4) administration 5) communications 6) training 7) service and support |
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Why is it necessary to involve employees in the development of the database? |
The accuracy of the database depends on the accuracy of the entries made. |
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How technology is used to support product management: |
Allows brokerages and companies to exchange insurance information electronically. |
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How technology is used to support accounting: |
Accounting technology should support all new business, endorsements, renewals, and audit transactions. |
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How technology is used to support administration: |
Since repetition is involved, using word processing, database mail merge, and formatted mailing lists, brokerages can accomplish tasks in a shorter amount of time |
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The planning process brokerages need to undertake when considering an investment in technology: |
1) analyze the current business situation 2) project the future |
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Why is it necessary to involve employees in the development of the technology plan? |
Implementing the new technology will disrupt old, in-grained routines. Employees, naturally, may be disoriented and confused. |
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Why a contingency plan plan is important when new technology is being introduced: |
With all new system installations, there will be unforeseen problems and system failures. |
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The value of maximizing technology: |
Many brokerages, which have implemented computer-based system, do not use the technology to its full advantage or capacity. |
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What is meant by brokerage/insurance company interface? |
The interface between brokerages and insurance companies consists of electronic communication and the two-way transfer of information. |
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The two types of interface and the advantages and disadvantages of each: |
1) Single entry interface Advantage: lower communication costs, off peak hours. Training time reduced and productivity improved. Disadvantage: the response to a transaction is not immediate. There is a delay in correcting errors. Software costs may be extensive for both the brokerage and the insurance company. 2) interactive interface Advantage: Requires little additional investment and software by the insurance company to extend its technology to many brokerages. The insurance company is free to make changes to existing products and to introduce new products with without depending on one or more brokers technology vendors to update their systems. Disadvantage: Duplicate information. Entry may still be required to capture the information in the brokerages system. Ongoing training is required to keep brokerage employees up-to-date as new system features are added, or new employees are hired. |
