Real time and download interface tools, based on ACORD standards, have started to catch on in the surplus lines and program business marketplace. This allows retail agents and brokers to transfer data, without the need to rekey, up and down the E&S/program business supply chain. This is an exciting time in the industry, as these workflows are more
broadly adopted and rolled out in the wholesale marketplace.
When the industry first discussed applying these enhanced workflows to the MGA/E&S arena, we analyzed our agency's surplus lines book of business. We found that more than 60 percent of the surplus lines coverage we write is in commercial property and general liability. ACORD data standards AL3 and XML are in place for these lines of business, as they are for business owners, commercial auto and workers compensation coverages. Knowing this, we began talking about these tools with our agency’s MGA partners and demonstrating to them how the tools worked.
One of the MGAs we talked with is Glatfelter Insurance Group of York, Pennsylvania. We use Glatfelter's Volunteer Firemen's Insurance Services (VFIS) program to insure several local volunteer fire departments. Fire departments already have commercial property and casualty coverages in place—auto, property and GL—that are supported by ACORD real time and download standards. Just as we would advise carriers in the standard markets, we advised Glatfelter to implement download first, followed by real time inquiry/service transactions and then real time rate and issue functionality. The same counsel would hold true for anyone in the wholesale arena.
The first coverage we piloted—and subsequently adopted—with Glatfelter was commercial auto download. Depending on its size, a fire department can have a significant amount of vehicles to insure: ladder trucks, fire engines, pumpers, fire police vehicles, chief's vehicles and so on. By using commercial auto download, we have better data consistency in our agency. With access to better data in our agency management system and coverage information at our fingertips, we are much better equipped to service our fire department accounts—for everything from claims to issue auto identification cards and certificates to vehicle changes.
Next, we’ll pilot this enhanced interface with Glatfelter for commercial property coverages. With some of our fire departments operating out of multiple locations, this is a welcome addition to our agency workflows.
We eagerly await broad adoption of additional download and real time functionality within the MGA, E&S and program business marketplace. Our initial activities are already having a positive impact on how we transact business with our MGAs and how we service our clients. Service is critically important to helping these organizations and their leaders do more with less.
Our agency is being honored with a service award from one of our local fire departments this month. Part of the credit goes to our partner, Glatfelter, and its VFIS operation, for their commitment to bringing automation tools that help agents meet the service expectations of the fire departments they insure. In this way, each of us serves our respective communities.
