Agency
Automation: Friend or Foe?
Part 2
by Curtis M. Pearsall, Vice President, Agents' Errors and Omissions Department
In last month’s issue, we discussed download — the process carriers use to provide their agents with information via technology. This month, we are going to look at the issue of uploading.
Virtually all companies are looking to improve their efficiency and cut costs. One method that many companies have utilized is requesting (some are mandating) that agents use technology to provide them with information on new and renewal business as well as endorsements, etc. In the past, an agent would complete an application and mail it to the carrier. The carrier would then receive and process the application. This often took days, if not weeks.
With
upload technology, the process has not only been streamlined significantly
but the risk
of
many of the typical E&O claims has been drastically
reduced.
For example, when a CSR handles a new business application for a customer and uploads it to the carrier, in most cases the carrier will send back a message stating that the upload was successful along with a tracking or confirmation number. If a claim were to happen within days of that new business application, there would be no doubt when the application was sent in. In the old days with "snail mail," there could be some serious questions whether 1) the company received the app and 2) if they did, had it been processed. This could create some moments of anxiety for the agent in trying to handle a claim.
In many E&O scenarios, the issue of date received or date sent can be very important. Upload technology acts as a built in hard-coded date stamp. It is easy to identify the exact date of the transmission. The agent should keep a copy of the confirmation number in the file as documentation. On the other hand, if a CSR delays sending in the application, it will be very easy to show that the app was not sent in when it should have been. The United States Postal Service, which has been the brunt of many unfounded accusations over the years, cannot be blamed. Thus, good internal time management and priority setting of accounts is very important.
Another advantage to upload is more timely processing of the policy by the carrier. Once the upload is transmitted, many systems automatically order a credit report (if applicable) and the MVR. As a result, the policy is issued faster — and the quicker you get the policy from the carrier, the quicker the policyholder gets the policy. This will mitigate any confusion as to the coverage provided or not provided.
When uploading, it is very important to know and comply with the expectations of the carrier. A typical company requirement is that you, as the agent, are expected to have the original signed application in your agency file. Virtually every carrier that uses upload technology will conduct an audit/review from time to time. They will want to see those signed applications. The carriers have the same expectations via upload that they have when receiving a paper copy.
Are there any negatives to upload? Not really. If you are getting involved in this procedure, it would be good to have a meeting with your staff to talk through the process and the expectations of each party. Communication will go a long ways toward ensuring that upload is a win-win situation.