A Light Shines On Broker Workflow

When Marjatta Light began working in an insurance brokerage nearly 30 years ago, the big buzz was that one day in the not-so-distant future brokers’ work efficiencies would be vastly improved. Some day, it was said, brokers would be able to enter a client’s information into their broker management systems and that data could be exchanged with multiple carriers at once, in real time, without having to re-key data for each individual insurer’s system.

While the dream of a single-entry, multiple-carrier interface (SEMCI) solution has yet to be realized — and not because of lack of efforts — Light, the recently retired national director of personal lines at Aon Reed Stenhouse, still holds hope. She says she will likely continue volunteering her time and insights to the various organizations striving towards improving broker workflow.

Her determination and willingness to contribute ideas, feedback and volunteer time over the span of her career are among many reasons the Centre for Studies in Insurance Operations (CSIO) selected her to receive its 2009 Lifetime Achievement Award.

Light was born in Finland and moved with her family at a young age to Thunder Bay, Ontario. Nearly 30 years ago, a friend suggested she take a job at a local brokerage as a file clerk. Light accepted the position and thus began her foray into the realm of insurance brokerages.

It didn’t take long for her to rise through the ranks of brokers. In doing so, she came face-to-face with the realization that broker workflows included various systemic technological inefficiencies.

Light joined Aon Reed Stenhouse in 1991; three years later, she was transferred to Toronto. When she retired last year, she held the title of national director of personal lines. “When I first came into the insurance industry and started work as a file clerk, one of the things I heard was that, ‘One of these days, you’ll be able to put things into the computer and it will go to all of the insurance companies so that they could respond,’ and that was really going to innovate our industry,” she says. “Really, I’m so surprised that I’m coming to the end of my career and it hasn’t happened.”

PIPING UP

Light’s involvement with the CSIO dates back to her days working in Thunder Bay. “The CSIO would send out communications about feedback for forms and changes that they were going to make,” she says. “I have worked with the Agency Manager computer since version 1.4.2, which used the ACORD — and subsequently the CSIO — forms,” she says. “I felt it was important, when [the CSIO was] making changes, that brokers be involved in making those changes and providing feedback so that we got what we wanted or what we needed.”

Light’s work at Aon kept her busy and on the road quite a bit. Nevertheless, she still tried to attend CSIO meetings whenever possible and offer feedback. Over the past six or seven years, she made it a priority to become even more involved in the changes that affected the brokers’ technological landscape, she says.

“I felt it was important that brokers were participating and providing feedback on what it is that brokers need when the vendors were putting systems together and the insurers were starting to develop their Internet sites,” she continues. “I could see that there was going to be an issue… sometimes I was the only broker there, which was somewhat disappointing be- cause [the decisions that are made by the vendors and insurers] really affect the brokers.”

Common Ground

Many of the existing technological processes for exchanging data between brokers and insurers just don’t work, Light maintains. “You can have a broker representing six companies and there could be six different systems that they have to input to. Nothing looks the same so training becomes difficult,” she continues.

In fact, she observes that some recent technologies, such as Internet portals established by individual insurers, have actually made the brokers’ data exchange with carriers “less efficient, and technology is taking us in the opposite direction of what it was intended to do.” For example, she says, “to access the [insurers’ systems], you have to go through different Internet sites, and that really doesn’t expedite the process. What we’re forgetting about in the process is the consumer.”

Light remains hopeful that things will change. Although she does not foresee an overhaul revolutionizing the entire system, she says she has noticed increased cooperation between the broker channel, insurers and vendors. And she holds high hopes for the application of CSIO standards to streamline broker workflows between multiple markets.

“The exciting part is that the CSIO standards are in place, but instead of the CSIO being the one who directs this, they’re going to be an active participant,” Light said. “Some different groups right now are working on different things, and I can see that what’s really going to pull it together is the CSIO standards.”

Over the past 10 years, Light has noticed a momentum building for improving broker workflows. And so while previous efforts to develop a SEMCI solution have not been successful, she still feels stakeholders know something needs to be done.

“Rather than trying to change the whole thing again, I think what’s happening now is that people are taking components of [SEMCI] and working on it bit by bit,” she says. “As long as people are working with CSIO standards, I think that these tentacles are going to come in and pull it all together.”

Direct writers have existed for some time, she says, but a large number of consumers still want to buy insurance through a broker — including consumers who need something more sophisticated than a “cookie cutter-type” of policy.

“So the way the industry stands right now is that brokers need to get these efficiencies,” she says. “It’s crucial. And I think that insurance companies are starting to realize this. I really feel positive that this is going to come together.”

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People are taking components of SEMCI and working on it bit by bit. As long as people are working with CSIO standards, I think that these tentacles are going to come in and pull it all together.