The online certificates article in this issue describes two services, Ins-Cert and Certificate Exchange, that do "certificates" online, or more broadly, confirmation of coverage, in revolutionary new ways. Both view certificates as affecting an entire system - agent, insured, holder, and carrier. Therefore, making real change and improving the efficiency of the system means addressing the needs and activities of all parties.
Both Bill Hartigan and Frank Hayes had the insight to see that the Internet is the means to solve certificate problems, not just for the agent, or even insured, but the certificate holder/risk manager as well. The Internet can provide the platform for an exchange that serves all parties, reducing the amount of work in the entire system - not just for one element.
Exchanges, though very attractive in theory, can be difficult to get started. Putting technology in place isn't the hard part. It's evangelizing and achieving critical mass that can be very difficult. All exchanges suffer from the same chicken-and-egg dilemma: everyone thinks this or that exchange is a great idea and will be happy to use it as soon as the other guy does.
The online certificates article in this issue describes three services, CetificatesNow, eCertsONLINE, and VeriCert, that offer evolutionary improvements to the current certificate distribution model, making it possible for agents to delegate certificate issuance to insureds, thus facilitating insured self-service as well as a reduction in agency clerical workload.
These evolutionary offerings don't intend to change the world; they intend only to use the Inter-net as a vehicle for improving day-to-day life for agents, a worthy goal. And unlike exchanges, where their practicality depends on broad participation, certificate delegation can be offered to and adopted by one agency at a time, a simpler marketing and sales proposition.
But nothing guarantees that inter-entity ASPs, like those offered by online certificate services - whether revolutionary or evolutionary - will survive and prosper. There are practical issues certainly, not the least of which is how inter-entity ASPs integrate with single-entity agency management systems. And there are questions about pricing and value, getting the functionality right, and dangers for agents inherent in ASPs generally.
But by far, the most significant impediment to the adoption of any of these solutions is conceptual inertia. Many agents don't understand what's being offered. Many that do, don't want to change anything. They've reached the point of technology saturation. After struggling with automation for 10 or 20 years, they've got something that works pretty well and they're loathe to disturb a delicate balance.
Revolution, evolution, or none of the above? Have we come about as far as we can go?
Perhaps, as some have suggested, it will be up to the younger generation to carry on in new creative directions. Perhaps the exhausted veterans of yesterday's automation battles are only capable of fighting the last war.
Maybe. But I think there's a more promising approach.
What's needed is a new, comprehensive vision of the role technology - especially the Internet - can play in the insurance world. That new vision can bring focus and new energy. It can attract young talent into the industry. It can be the source of productive collaboration between wise and conservative elders and the energetic and brash younger generation. Elements of the new vision are all around us. And the charter of Sounding Line is to describe and interpret them. Read and understand it here. Pass on the word. Thanks.
© Copyright 2001 by Sound Internet Strategy. All rights reserved