New to online certificates of insurance, but not to agency automation, Insurance Visions (a.k.a. Qwik App) began offering its eCerts-ONLINE service February 1 this year. Well thought out and two-and-a-half years in the making, eCerts-ONLINE makes it possible for agents to provide a Web-based certificate service to their insureds. The insureds win because they can now produce certificates when they need them (even on weekends). The agency wins because it can significantly reduce the amount of time it spends preparing, printing, and mailing certificates.
Though it may not be obvious to most agencies, certificate processing can be an expensive proposition. According to Nils Martin-son, Insurance Visions chief, handling a simple certificate can cost an agency between $4 and $7. If the certificate includes attachments or endorsements, the cost can be much higher. Certificate costs add up quickly when handling the hundreds some insureds require. And renewal processing for a large account can occupy agency staff for days just to process renewal certificates.
Does delegating certificates make sense?
Though online certificates are an enticing prospect, some agents be-lieve they may cause more trouble than they're worth. One common concern is that once the insured begins handling its own certificates, the insured will question why it needs the agency. After all, isn't the agency supposed to do this clerical work? Isn't that how the agency earns its commission?
The claim that agencies earn their keep by doing clerical work in a traditional manner has been a recurring theme in the history of agency automation. I remember a time when agents insisted they must type customer correspondence on an IBM Selectric typewriter. Customers would be offended to receive a computer-generated letter. How times have changed - or have they? Are objections to online certificates really just opposition to change?
Perhaps a more important point is that agents should constantly find ways to reduce their clerical load, especially when doing so benefits the customer. After all, is the real value an agency adds the traditional clerical functions it provides or its insurance expertise, risk management advice, and access to markets?
Certainly, if an insured doesn't want to handle its own certificates, the agency shouldn't force it. Online certificates are about providing customers more choice, not compulsion. But even if a particular insured doesn't want to do online certificates, the agency might find that using a service like eCertsONLINE to handle certificates for that insured is more efficient than its current approach. An agency could use eCertsONLINE in two way: 1) to provide online certificate service to insureds who want it and, 2) for its own internal use.
It is very likely that virtually every agency with commercial lines accounts has some insureds who would be eager to control their own certificate processing and willing to do some work to have the ability. Contractors often need certificates off-hours or on weekends. Online certificates are just what they'd like to see. The need is there.
OK, an agent might say, so some insureds would like to handle their own certificates. So what. They'd probably like to write their own policies as well. Letting insureds process their own certificates is courting disaster. They'll do it wrong and then everyone involved will be mad. And the agency will be held accountable for delegating this important task to enthusiastic, but insurance-ignorant, lay people. The point: Though insureds' desire for online certificates is a necessary condition for their use, it's not sufficient.
Of course! Agents need to be discriminating about which insureds they provide online certificates service to. According to Martinson at eCertsONLINE, it's likely that 20% of an agency's commercial accounts generate 80% of the agency's certificate activity. Most heavy certificate demand insureds are probably reasonably sophisticated businesses with a good understanding of computers and the Internet. Most will be conscientious in their business practices. Not all insureds should be allowed to access online certificates. Only those with significant volume and the ability (and willingness) to handle certificates should have access.
As we'll see below, giving insureds the ability to issue certificates doesn't mean creating chaos. The agency determines the contents of the certificate, which endorsements can be attached, and wording on attachments. The agency and companies get copies of every certificate that is issued and can thus monitor the process. Errors can be corrected in minutes. And insureds that show they can't handle the process reliably can be excluded from online certificate access by the agency when necessary.
Signing up
An agency that wants to subscribe to eCertsONLINE can do so through the InsuranceVisions Web site. That site also provides access to the Insurance Visions' "Online Service Center," an ASP service that provides online claims, policy change, and other forms to insureds on behalf of agencies. Online Service Center is intended to allow insureds to initiate many common insurance service transactions, 24x7, linking through the agent's Web site. The vendor's site also includes an eCertsONLINE demo, overview, and current pricing as well as vendor background.
Signing up for eCertsONLINE on the Insurance Visions Web site triggers an e-mail transmission of an eCertsONLINE contract back to the newly subscribing agency. The agency must complete the contract and return it to Insurance Visions in 72 hours. Fees include a one-time service initiation charge, a monthly usage charge, and a per certificate charge. Payment can be via credit card or monthly billing. The signup process also allows an agency to provide signature samples to be used on the certificates as well as the opportunity to download a 45 page PDF-based user manual. Once an agency has signed up for eCertsONLINE at the Insurance Visions site, access to the online certificates ASP is through the eCertsONLINE site.
Set-up by agency
During the online sign-up process the subscribing agency entered a user ID (e-mail address) and password. A first step in setting up eCertsONLINE for general use in the agency is to add user IDs and passwords for each agency employee who should have access to the service.
The next step is to add insureds, that is, create a record for each insured to whom the agency will offer the eCertsONLINE service (or for use by the agency staff). Besides name and address information, the insured records contain User ID (insured e-mail address) and password fields. The insured uses those values to log onto the service to prepare and create online certificates.
With the insured records established, the agency can go on to establish one or more master certificates, or templates, for each insured. Note that the agency can add insureds and master certificates at any time so insureds can be added to the system in a gradual way consistent with agency staff availability.
The master certificate maintenance form contains fields appropriate to populate the ACORD 1997 certificate form. The first task is to name this particular master so that it will be easy for the insured to recognize later on when they access it. For instance, if an insured requires a different master for each state in which they do business, the agency will want to include the state abbreviation in the certificate name.
Up to 4 companies are allowed per certificate master - with provision for an e-mail address for each. When the insured issues certificates based on this master, copies will be sent to the carriers - at the e-mail addresses specified on the master. The agency goes on to enter relevant GL, auto, garage, excess, WC, and other liability provisions, policy numbers, dates, and limits. There is no provision for automatically filling the certificate master from the agency's management system. Re-keying is required, though this small amount of redundant work presumably pales in comparison with the reduction in overall time and effort realized through the insured issuing its own certificates.
Agencies can create an attachment for any certificate master. The attachment is a 55-line form the agency can format as desired. It can be used to specify additional insureds, policy exclusions, or special endorsements. The attachment can act as a supplement to the Description of Operations section.
In some cases, for some certificate holders, endorsements need to accompany the certificates. eCerts-ONLINE allows the agency to specify which of the 16 endorsements it supports will be made available to which insureds. By supplementing the certificates form with commonly used endorsements, the agency can minimize recourse to the company for endorsements and the calendar and save staff time required for that process.
Once the above steps are accomplished for any particular insured, the agency can bring that insured on line.
Set-up by insured
Once alerted to eCertsONLINE availability and their User ID and password, the insured can go to the agent's site and then via a link to eCertsONLINE. The first order of business is to print out the insured user manual and review it. (The agency may have already provided the manual to the agency along with some training.)
The agency has already set up one or more master certificates for the insured, along with relevant attachments and allowable endorsements. The insured can view but not change the agency template. The insured must enter certificate holders and then choose endorsements and (potentially) create addendums relevant for each holder.
Though eCertsONLINE does not support certificate master pre-fill from agency management systems, according to Nils Martinson, the vendor can accept certificate holder extracts from agency management systems that can create them. For insureds with hundreds of holders, having the holders already available would be appreciated and perhaps expected.
Since the point of eCertsONLINE is to be able to e-mail certificates to holders, one important piece of information requested on the holder input form is e-mail address. In those cases in which a holder cannot accept e-mail, the insured will likely print out the certificate when created and mail it. The holder form also provides four lines for "Description of Operations/Locations/Exclusions." In those cases in which those four lines are inadequate, the insured can create an addendum for that holder that provides complete descriptions.
Issuing certificates
Once the insured has created at least one holder and chosen endorsements and created an addendum, if necessary, for that holder, the insured can issue certificates. The process is straightforward. The insured chooses the particular certificate master to be used (or the only one available) and then selects which holders attached to that master are to be issued a certificate. Then the eCertsONLINE system does its stuff.
Certificate sets are created for each holder and include an attachment, endorsements, and an addendum as relevant. Rather than being printed on paper, as they normally would, the certificates are "printed" to PDF files, a cross-platform format created by Adode and widely used as a vehicle for high-quality, print-like, read-only files. An appropriate set is created for and sent to each holder as a PDF attachment to an e-mail. At the same time, an e-mail with the same attachment is sent to the insured, agency, and each carrier on the certificate. The reliance on PDF means that holders, insureds, agents, and carriers must have the Adobe PDF reader available. Probably most already have it installed. If not, they are instructed to download it free from the Adobe site.
Once they receive them, the holders can print their certificates. The insured, agency, and carriers may review the PDF certificates and archive the PDF files and/or print them out - to be filed transactionally (I hope). Every time a certificate is created for any holder, that fact shows up in an online insured log available to the insured and an agency log available to the agency (and covering all their insureds). The logs can be sorted in a number of sequences, for instance by date-time, holder, or master certificate. So if an agency desires to print out all certificates, it can file them by date and then find appropriate certificates by insured, for instance, by using the date-time log sequence.
Renewals
One of the benefits of using eCertsONLINE is the convenience for insureds and agencies in issuing certificates associated with renewals. Though automation is often used today to print the certificates - without much human intervention - the additional steps of mailing can be enormously time-consuming for an agency. To process a renewal with eCertsONLINE, the agency updates the appropriate master certificate(s), including endorsement list and attachments. The insured reviews the master certificate and then the holders/endorsement choices/addendum associated with the holders. Then once the insured tells eCertsONLINE to go ahead, the certificate process is completed automatically with no further effort.
In the renewal situation PDF files are sent to each holder, as usual, but the insured, agency, and carriers receive summary e-mails that contain a list of each certificate issued and their associated file name. The certificates are not actually e-mailed but can be picked up and printed when desired. Each certificate issued appears on the insured log and the agency log. Insurance Visions is concerned about the mass of data that might descend on the insured, agency, and carrier e-mail systems generated by multi-holder renewals and decided it would make more sense to let people know - then let them pick up the certificates at their leisure.
Some observations
Certainly online certificates, with insureds issuing them, isn't for everyone, but it's a wonderful example of the way technology, especially the Internet, can be used to provide an out-facing service that benefits the insured, their certificate holders, agencies, and carriers. And since the service is hosted by the vendor, the agency needn't make much of an investment to begin using it.
As currently set up, agents can link to the eCertsONLINE site but they cannot private label the service in their own site in a way that leads the insured to view it as coming from the agency rather than a third-party provider. Ultimately, I think, agents are best served if they can brand every service they provide through their sites. Agency sites that appear to pass insureds off to another provider will be perceived as a patchwork of services rather than a professionally deployed direct service of the agency. My recommendation to Insurance Vision is that they put agency private labeling high on their development list.
Ideally, it would be desirable to be able to pre-fill certificate masters from agency management systems, but practically speaking it may not make much difference. Integration processes cost money to develop and require continuing close operating cooperation between partners (Insurance Visions and management systems vendors). And running the integration software may take more time and be fraught with more errors than simply keying in the information.
If you're interested in online certificates, and I think you should be, take a look at the eCertsONLINE service. They've been in the agency automation business for 13 years and have carefully thought through the certificates problem, creating an ASP that does all participants in the process a great deal of good.
ASP-hosted Out-facing Service
Since most agencies do not have the capability to provide online certificates, a number of vendors have sprung up to provide the service to agencies. These vendors offer the services as ASPs (application service providers). That means the agency does not need to install any software in their agency or on their Web site. They have access to the certificate software through the vendor's Web site via their browser. So agents can begin to take advantage of online certificates within minutes of making the decision to use them. Generally the vendors charge modest start-up and ongoing fees for use of the service.
Web-based certificates are a perfect example of the kinds of mutually valuable out-facing services agents can provide their insureds. And vendors that offer these services to agents are a perfect example of the power and reach of the ASP software model. At this writing, seven vendors offer some kind of online certificate service. (See the Resources page for more information.)
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