Where would we be today without the evolution of the interstate highway system? We had roads. We could have remained complacent. But think of the time savings and efficiencies we now enjoy thanks to interstates, which continue to undergo improvements even to this day.
So how does that relate to commercial lines Real Time rating? The industry is still facing some bumps in the road, but the system is already a valuable tool—and it will only continue to evolve, adding significant efficiencies to the independent agency channel along the way.
Regardless of the approach and management system, commercial Real Time roads are ready for travel. And a variety of routes are available to reach the final destination.
Taking the Bridge
With a Real Time quote bridge (also known as a rating bridge or Real Time upload), an agency can “bridge” a client’s quote data from their agency management system to the carrier, eliminating the need to rekey data into one or many carrier websites. In fact, one company estimates that agents experience a 98% keystroke savings by bridging commercial lines quotes.
During the bridge process, the agent typically completes the quote at the carrier site. Carriers can respond with a link in HTML that automatically launches the agent user to the website, dropping them in the quote with the bridged data and providing one continuous workflow. By embedding the agent credentials, this process eliminates the need for the agent to sign on separately to the website.
The goal of bridging is to connect existing data so that the rest of the rating rules can happen on the carrier website.
Taking the Superhighway
For true Real Time rating, every piece of rating data must be either available from the agency system, or defaulted or retrieved from other sources. Carrier systems must be capable of processing the data in real time to return a rate and quote proposal.
The goal of the Real Time rating is to stay out of the carrier’s proprietary system—an ideal that remains rare across commercial lines. But successful technologies are now emerging that provide the same result—a rate and quote proposal without the need to access the carrier website. These new implementations may require a quick stop along the highway, but they pave the way for change.
Some carriers are streamlining the agent process by creating procedures that review each quote in real time and compare it against business rules. Integrating specific data presents the agent with the option to gather only the information that is necessary, while also eliminating the need for the company to maintain rules in multiple places. Carriers are keeping the data input to a minimum, defaulting values wherever feasible.
Behind the scenes, these systems are capable of adding additional collected data to the agent quote request and applying defaults based on rules to bump or roll other data before submitting the rating request. Quotes are then returned within seconds, including an accurate rate and PDF quote proposal—without the agent moving to the carrier website.
From the carrier’s perspective, it is important to maintain rules in one place, which also benefits agency accuracy.
Different Routes, Common Destination
Just as independent agents use different systems with different capabilities to run their businesses, so do carriers. As a result, each carrier may plan their Real Time trip differently. But that doesn’t alter the common goal. Instead, it provides a road map for progress and efficiency gains along the way.
In the 2013 Real-Time/Download Campaign Agency Survey, agents clearly identified the value of Real Time, noting not only its ease of use but also its ability to save significant amounts of keystrokes and time. So how can agents advance the cause?
- Use commercial lines bridging and rating for those carriers that are providing it.
- Provide feedback to carriers regarding what works and what doesn’t.
- Remind carriers how important this functionality has become.
- Embrace the next improvement or new development.
- Thank senior carrier executives when they provide time-saving Real Time functionality.
But agents will also need help from carrier partners, who can do their part by:
- Understanding the options available and planning the trip, if not yet begun.
- Realizing internal capabilities, as well as available external assistance.
- Enlisting industry resources for help.
- Starting small by beginning with just one line.
- Talking with agents for feedback, and working hard to enhance existing implementations.
It is essential for the future of the independent agent distribution system that agents and carriers get on board with commercial lines Real Time rating. Now is the time to pave the road for our future. As the noted authority Lily Tomlin said: “The road to success is always under construction.”
Visit the ACT website to read the full version of this article.
Thad Bauer is president and co-founder of NxTech, Inc., a firm that helps carriers, MGAs and brokers implement Real Time and Download.
This article reflects the views of the author and should not be construed as an official statement by ACT.
