Insurance Company Achieves On Demand Goals With Automated Fast Response Quote System From MSI

Since the advent of the Internet and common to the insurance industry, a large Midwest Insurance Company had experienced a dramatic change in the way its products are quoted and sold.

"MSI's focus was always on what was needed to assure that the project would make us a success in the eyes of our customers (the agents)." - CIO

In the not too distant past, most property and casualty insurance and reinsurance policies were sold through independent agents, following a time-honored and time-consuming process.

To stay competitive, insurers like theirs had to respond to quote requests in a matter of minutes or hours - not days or weeks.

They were using a traditional phone and Fax-based quoting system to connect with the company's network of more than 1,500 independent agents. These agents typically handle several competing lines of insurance, so price and responsiveness tend to be major deciding factors in winning business.

As competitors began to adopt faster-turnaround quote systems, using Internet technology, their top management quickly realized that they needed a secure system that would get quotes to the agents faster.

The company wanted a solution that would enable agents to quickly and easily access the information they needed to quote and apply for policies on-line. In order to assure that accurate up-to-date quotes and approvals could be returned in a matter of minutes, the system had to be integrated with the existing Cobal-based underwriting database system. Given the nature of the data the system would access and transmit, security was right at the top of their list of concerns.

This solution would also usher in a whole new way of doing business, so it became a very high profile venture. Corporate management turned to MSI to assure that they got the system they really needed, with minimal disruption of ongoing business operations, and without the headaches and break-in/break-down nightmares that too often accompany newly installed computer systems and applications.

The MSI Solution

MSI systems and technical experts worked very closely with their managers, underwriters, and independent agents to establish a set of criteria that was used to design and build a fast and easy to use quote generation/policy application system, capable of putting them out in front of the competition.

A pilot program was created and thoroughly tested to make sure that the finished system would successfully address and accommodate agent needs. System requirements and customer expectations were carefully and clearly defined up front. Both MSI and the client team tested each component and application prior to incorporation in the overall system. Everything that could be done to ensure a clean launch was done.

The teams were able to work exceptionally well together in order to assure that every potential user requirement was addressed and resolved in a way that enhanced the speed, usability, and effectiveness of the final system.

"We tested each application function as we went along. When we completed a function, we would send a test copy over to the client and they would test it from the perspective of an agent to determine how the agent would expect that function to work," noted MSI's Patrick Williams, who was in charge of developing the Web interface. The graphical user interface (GUI) had to be highly intuitive, easy to use, and fast. The customer wanted a system that would encourage agents to always include a quote from them, simply because it was very easy to do so.

The system also had to be integrated with the company's IBM AS/400-based underwriting database in order to generate fast and accurate quotes, underwriter-approved policies, and policy changes.

The managers initially envisioned a separate Intel-based server array, linked to the existing IBM AS/400. MSI suggested simply upgrading and partitioning the IBM server to accommodate both the underwriting database and the Web-based remote agent access system. The approach resulted in significant savings in hardware, software, and training, while providing a much more secure and stable operating environment.

The Cobol underwriting database was already in place, so the primary task was developing a user-friendly XML front-end that would interface with the Cobol back-end. MSI created the custom application utilizing IBM WebSphere Studio Application Developer and Java J2EE for use with WebSphere applications server. MSI also established and conducted a training and mentoring program designed to help their internal IT personnel become proficient in maintaining and modifying the new system to meet changing needs. Thanks to a great deal of planning, testing, preparation and training, the launch of the new system was flawless and it is now up and fully operational. The result is an infrastructure that is helping them compete more effectively in the marketplace and quickly adapt to changing market requirements.

For example, the system allows company IT managers to almost instantly bring more resources on line if usage suddenly spikes. Today, the agents can quickly and easily access the system via the Internet; submit the necessary information via fill-in forms and get a computer generated quote back in a matter of minutes. It is a system that has certainly enabled them to become a truly on demand provider within a highly competitive industry.

According to the CIO, "MSI did an excellent job on this project. We were particularly impressed with the extent to which they sought to understand our business requirements. MSI tested each part of the solution before incorporating it into the system. MSI also brought a high level of systems expertise to the table, which helped keep the project on course to succeed."

Benefits

The client wanted to achieve several key goals through this new Web-based approach to quoting and issuing policies. Among the most critical were:

• Improve market penetration through participation in more bid opportunities.
• Establish closer more responsive relationships with the independent agents.
• Match or beat competitors' bid response time.
• Provide a secure remote access environment.
• Reduce the costs associated with quote development and issuance.

In each instance, the new MSI designed system has made important contributions to their overall success. In summing up his evaluation of MSI performance on this project, the CIO observed that, "MSI's focus was always on what was needed to assure that the project would make us a success in the eyes of our customers (the agents)."