Mission: Terminate Dual Entry with Extreme Prejudice

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Mission Terminate Dual Entry(with Extreme
Prejudice)
Tim Fitzpatrick 416-587-3901 mail_at_covirt.com Vir
tGate at Your Service
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Behind the Scenes

• Technology can mean many different things to an
  advisor. Today we will discuss aspects of
  insurance systems outside the immediate grasp of
  the advisor

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The enemy .

• Dual entry as a result of proprietary systems
  are significant barriers to work flow.

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Squeeze Play on Distributors

• I am concerned about the cost of doing business.
  Agency expenses keep rising, agency workload
  keeps increasing, the cost to maintain current
  and new technology and upgrades affects our
  bottom line. At the same time, commissions are
  decreasing. I wish someone could do something to
  help alleviate the current situation.

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Automation Challenges

• Learning various company proprietary systems
• Keeping up with changing technologies and
  updating versions
• Educating and train staff
• Multiple IDs / Passwords

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Distributors Cry

• We need to systems to interface, via the
  Internet.
• And distributors will vote with sales!

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Choosing a Carrier

• Product
• Price
• but then
• Easy, fast, accurate quotes
• Ease of doing business with automation

When insurance product and price is not an issue,
94 say ease of doing business matters
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Repeated Manual Dual Entry

• The greatest unnecessary time waster.

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Who has the Data?

• Reinsurer
• Carrier
• Agency
• Advisor
• Client

• Paramed

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MGA
Group
Group
Group
Broker
Broker
Broker
Broker
Broker
Client
Client
Client
Client
Policy
Policy
Policy
Coverage
Coverage
Coverage
Coverage
Coverage
Coverage
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What is Dual Entry?

• Proprietary Systems not talking
• Advisor Contact System
• Survey System
• Carrier Illustration
• Application for Insurance
• MGA Management System
• Paramed Suppliers
• Carrier System
• and then it all flows backwards!

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What Should be Done?

• Carriers (and Vendors, Suppliers) should be
  directing their system dollars towards
  Connectivity and away from proprietary systems,
  to help eliminate dual entry.

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Order of Priority

• What do life insurance agencies want from
  carriers and agency management system vendors?

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Priority 1

• Pending / New business downloads from carriers to
  the MGA agency management system.

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Priority 2

• Common standard set of forms for all categories -
  new business, licensing, service etc.

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Priority 3

• Single entry for all carrier illustration
  software allowing simultaneous multiple carrier
  quotes from that single entry.

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Priority 4

• Inforce downloads from carriers to MGA agency
  management system.

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Priority 5

• Licensing and contract downloads from carriers to
  MGA agency management system.

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Priority 6

• Commission downloads along and tracking /
  managing / reconciliation capabilities from
  agency management system vendors.

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Priority 7

• Electronic Marketing Materials

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Priority 8

• New business applications forms online, and have
  the application be uploaded to the carriers.

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Priority 9

• Imaging standards that are simple to implement.

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Priority 10

• Policy service online for brokers and customers
  with real time views and transactions.

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Browser-Based Solution

• Future Any customer service system can, and
  should be, replaced by browser-based Internet
  services.

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Browser-Based Solution

• No software or hardware or server is required to
  be purchased, set up or maintained, and
  processing (e.g. searches, reports) occurs on the
  Internet server.

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Browser-Based Solution

• Provides superior service while at the same time
  reduces internal resource requirements.
• All that is needed is a standard web browser and
  access to the Internet.

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Systems talking XMLife !!

• Within the insurance industry, ACORD defines and
  XMLife "Vocabulary which are the "words" are
  that we all agree to use in insurance related
  business-to-business.

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XML
Using a common set of interfaces XMLife (what)
Web Services (way)
Linking Organizational Systems Internally
Linking Organizations Externally
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Life Company Central

• Build a common interface Portal that will
  provide transaction exchange services for
  Carriers, Distributors and Solution Providers.
• LCC was never designed to provide services that
  are today considered back office processes.

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Market Driven Connectivity

• Like a spider web, the market will instead build
  Connectivity one thread at a time, with each
  thread delivering immediate value.

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Feeds vs Links

• There are 2 major ways we are connecting with
  other systems Feeds and Links.

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CoVirt VirtFusion Engine
Formats
Delivery Protocols
Carrier A
Flat File Pending
VirtFusion Translation Codec
Automatic SOAP HTTP FTP SMTP Manual Browser Uploa
d
Carrier B
Flat File Inforce
Carrier C
XMLife Inforce
Paramed Company
XML Pending
Industry Portal
VirtGate Database
TXLife Requirements
AGA
TXLife AV Inquiry
Broker
Et Voila !
Custom Codecs
Group Association
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VirtFusion is Backbone

• A custom Translation Codec is written for each
  feed.

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Translation Codec

• Bridges the data between 2 systems

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Translation Codec

• Accepts any format such as CSV or XMLife

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Translation Codec

• Accepts any delivery method
• Automatic such as SOAP, FTP
• Manual through Browser Upload

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Translation Codec
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Translation Codec

• Applies custom filters
• Determines what is done
• Processing report policy by policy

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Case Study - Pending

• One Carrier Provides New Business Notifications,
  and another complete Statuses

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Disadvantage of Transactions

• Builds only over time
• Cant Miss a File

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Advantage of Transactions

• Can change Statuses
• Can create Follow Ups for New Business
  Coordinators
• Can update Journal / Diary

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Connecting Through Links

• Recall object is to avoid Dual Entry

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Recall Priority 3

• Single entry for all carrier illustration
  software allowing simultaneous multiple carrier
  quotes from that single entry.

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Navigation Time

• Besides savings on dual entry, links also save
  Navigation Time

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VirtGate Illustrations

• Two term survey systems
• Novinsoft for Portal
• Up to 25 of man hours

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Novinsoft Encryption

• XMLife-formatted client data is passed from
  VirtGate to the Novinsoft Portal using encrypted
  using Triple-DES (3DES), encrypts the plain text
  three times using two or three different 56-bit
  keys

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Connectivity - Other Examples

• Already produce commission feeds for a variety of
  accounting systems and payment processing
  services
• Links between MGA and AGA systems

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Connectivity - Other Uses

• Quote and sell travel insurance, and then send
  back the policy and commission detail to the
  MGAs VirtGate management system.

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Connectivity - Other Uses

• Link straight from AMS record to a carrier's
  online system for status checks
• Send carriers an application via a XMLife stream
  of the data keyed by the MGA, plus the scanned
  application.

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In Conclusion

• Closed proprietary systems where profits were
  once gained at the expense of open, shared
  information, are dead.

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Winners and Losers

• Only those who do the best job opening
  information to all, making sure it is distributed
  accurately, quickly, economically and equitably,
  will profit.

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Everyone Wins!!!!

• Redundancy eliminated
• Reducing paper
• Better / faster / accurate management information
• Cutting new business cycle time
• Decreasing duplicate entry
• Cutting computer costs

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Advisors are the Winners!!!!

• Better service
• More time
• Less frustration
• Greater opportunity

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Thank You
Tim Fitzpatrick 416-587-3901 mail_at_covirt.com Vir
tGate at Your Service
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Connectivity
Carrier
MGA
Advisor