Insurers, brokers struggle with connectivity issues despite technology advancements

Boston consulting firm Strategy Meets Action released this week the results of a recent survey of property and casualty insurance firms, suggesting that despite technologies linking the computer systems of brokers and agents with those of carriers, many workers are still having to type in the same data more than once.

“Both agents/brokers and insurers find more shared concerns when it comes to connectivity issues,” according to SMA’s report, titled Distribution Management – Connectivity Plans and Priorities. “Both cite ‘rekeying information into multiple systems’ as the number 1 challenge.”

The report, based in part on surveys of carriers, agents and brokers, was written by SMA founding partners Deb Smallwood and Mary Ann Garwood.

Last year the firm surveyed 479 property and casualty insurers, agents and brokers with a mix of business and information technology leaders. The survey looked at IT investment priorities with the aim of assessing “the maturity level of agent/insurer connectivity in the insurance community and to better understand how required capabilities are influencing investment decisions and directions.”

Respondents were asked what their top three connectivity capabilities (between computer systems of brokers and agents with those of carriers) were.

When insurance carriers were asked for the top three capabilities they should provide to brokers and agents, 80% of personal lines insurers identified “data to be keyed once.” The same capability was identified by 64% of small commercial lines insurers, 58% of whom said “electronic exchange of all data and information” was one of their top three.

Collaboration was the top capability cited by both mid-market commercial and specialty lines carriers.

When agents and brokers were asked for the top three connectivity capabilities their carriers should be giving them, 81% of personal lines brokers and agents identified “data to be keyed once,” a capability identified by 72% of small commercial lines agents and brokers.

“Easy to submit applications” was the top capability identified by 65% of mid market commercial brokers and agents, and 56% of specialty brokers and agents.

Nearly half (46%) of specialty lines agents and brokers indicated electronic exchange of all data and information was one of the top three capabilities they want from their carriers.

In the survey, insurers were also asked what connectivity capabilities they already have, which they are piloting or evaluating and which they have no plans for. Seventeen per cent said they have no plans for business intelligence and dashboards, 40% are using them and 43% are piloting or evaluating them.

When carriers were asked about paperless policy access, 69% said they provide it, 22% are piloting or evaluating it while 9% have no plans for paperless policy access.

“Most of the prevalent agency management systems are functionally rich when it comes to facilitating data exchange,” according to the report. “They have been built to connect. For the insurers, in many cases, significant investment is required to build new systems and enhance existing systems so that they are interaction and collaboration ready.”