Mediating is the Message

Quebec’s brokers’ association, the Regroupement des cabinets de courtage d’assurance du Qubec (RCCAQ), is following a road never before traveled — seeking the Holy Grail of universal, real-time interface.

The RCCAQ is funding a project to develop and implement a real-time data exchange facility between brokers and companies. It has undertaken the project under the leadership of RCCAQ general manager Hubert Brunet and president Claude Brosseau, in addition to the full support of the association’s board of directors.

Built on the ashes of the defunct CSIO Portal, the new system is innovative in many ways. First and foremost, contrary to past industry initiatives, the project is controlled and funded by brokers through a partnership with BComC, a Montreal-based developer specializing in supply-chain management software.

The focus of the RCCAQ Central is clearly on the greater efficiency of brokerage operations and the gradual reduction or elimination of the proprietary solutions many companies typically offer. As a result, the RCCAQ Central will allow brokers to use the same set of screens and processes for all companies.

HOW IT WORKS

To perform a given transaction, most companies require the same data. However, on their proprietary solutions, this data is displayed in unique ways and the steps to complete the transaction can be different. The RCCAQ Central will use standard data entry forms and procedures for all companies. As a result, training will be greatly reduced and staff flexibility will be increased.

The role of the broker management system (BMS) will be to send data to the RCCAQ Central and receive, display and store the company response. Depending on its capability, a BMS could actually make the RCCAQ Central invisible by providing all the screens, data fields and processes available through the RCCAQ Central.

In order to easily accommodate the company and the BMS at both ends of the transaction, the RCCAQ Central will use a technology based on “translators”. These translators basically reformat the data according to the specific needs of the business partner, thereby providing unlimited flexibility and speedy maintenance.

The RCCAQ Central will be hosted in ASP mode; it will be accessible through a browser and a high-speed Internet connection. Brokers will not need to load any particular software on their own servers or workstations.

The first transactions to be offered will be automobile and residential quotations. Instead of relying on their own rating software, brokers will submit quotation requests and companies will respond in real time except for cases requiring human intervention. All companies will need to participate in the quotation process in January 2008. Very quickly, high-volume transactions like personal lines endorsements, renewals and new business will be added as companies develop this capability. Eventually, commercial lines transactions will be offered as well.

SECURITY: STATE-OF-THE-ART

Security will be state-of-the-art. Once registered to use the RCCAQ Central, a brokerage will designate a “super-user,” who is responsible for requesting individual user IDs and passwords from companies. User credentials will be stored on the RCCAQ Central and embedded in transactions as required. As a result, users will only need to sign on to the RCCAQ Central to access all the companies for which they have credentials. All transaction data will be encrypted.

During the implementation phase, the RCCAQ will be responsible for marketing and sales, administration and training. BComC will look after the operation and evolution of the physical facility that houses the system, as well as the development and maintenance of the application.

The project requires a very high degree of coordination among all the business partners. In order to deliver the quotation capability, for example, all companies and BMS must meet the same deadline. This is relatively simple for companies that already have systems that can quote in real time. However, companies that do not have such systems will have to make arrangements with a real-time rating service to provide the required quotes. At the other end of the transaction, the BMS must be able to upload and download this data in real time. A company or BMS that could not meet the deadline would be at a serious disadvantage versus its competitors.

IN THE LOOP

Also, it is critical to keep the business partners well informed about the objectives and schedules. Each partner must be convinced that not only is this a worthwhile project for the industry, but that other companies and vendors will do what is required to make it work. Otherwise, it becomes a waiting game; the project stalls to a crawl and eventually stops. In order to avoid this deadly trap, the RCCAQ has made this project its top priority for 2007.

The RCCAQ presented the project to several stakeholders in 2006; such presentations have carried forward into 2007. The RCCAQ met with individual companies at first; following these meetings, top company executives gathered together to share ideas and collectively commit to the project. Regular follow-ups occur to ensure that everyone stays on board and that issues are addressed promptly.

RCCAQ management and board members have taken a very active role in obtaining the commitment of companies and vendors, whether by arranging meetings, making phone calls or sending letters and emails. Companies have written letters to vendors to communicate their full support and expectations about the project. This is truly an industry-wide effort.

We are very optimistic that all the pieces of the puzzle will fall into place and that the RCCAQ Central will become a reality in Quebec in a few short months. We have been in contact with other provincial and national broker associations; they have been very supportive of our initiative, and will definitely look into the opportunity to implement the same model and technology in their own area. Let’s all work together to make it happen.

Andr Arseneault is a consultant. He spent 18 years managing various BMS, including seven years as executive vice president of Applied Systems Canada.