S.B. The AMS press release that announced your new position touched upon your automation experience. For those who aren't familiar with you, how about telling us about your technology background in general and agency automation experience in particular.
L.R. My introduction into computer technology began back in 1981 when my husband, co-owner of the Dimond Bros. Agencies, asked me to evaluate the dozen plus agency management systems available at that time. Coming from a nursing background, I had worked with lots of medical technology associated with critical care patients but no computers.
At the time of purchasing our agency management system, Dimond Bros. had only three locations. Finding a vendor suitable to handle multiple locations with the capacity for additional growth through agency purchase or acquisition, the capability of handling all bookkeeping functions from the host site, and the ability to support an in-home office capable of dialing into the downtown office eliminated many vendors immediately. With a relatively lengthy list of requirements in hand, I began shopping.
After months of gathering information, talking with vendors, and reviewing systems, my recommendation was given and the agency feedback was, "Too expensive!" So I went to our local bank, borrowed the money to purchase the system, sold services back to Dimond Bros., and the rest is history.
My education in automation was strictly OJT (on the job training). We needed to automate our agencies to gain the competitive edge and accommodate our future growth goals. To achieve those goals, we had to be innovative and incorporate technology into a very staid agency that was established in 1867 by two brothers named Dimond. One brother was newly retired from Custer's regiment (a decade) before Custer's Last Stand. Talk about a visionary!
One of the biggest challenges was working with our local, privately owned phone company. They were astounded that our little business wanted and needed such progressive communications technology in our town of 2700 people, host site of Dimond Bros. So we pushed communications technology development a bit further for other businesses to enjoy in the communities where we had offices. When they made the latest technology available for us, there were always more businesses in need of similar services.
S.B. You've also been actively involved with the AMS Users Group since its beginning as well as with ACORD and other industry groups. In addition to giving us a resume of sorts, what has motivated you over the years? Are you naturally a "roll your sleeves up and get involved" person?
L.R. Years ago as a twenty-something registered nurse with the responsibility of making life and death decisions for critically ill patients, I would definitely say my attitude became one of doing everything humanly possible to make a difference — whatever the situation. It carried through to my business career and has remained a constant factor in daily living.
Our AMS Series 1 was approximately the 12th system sold back in 1981. Once there were approximately 20 systems sold, AMS brought us in to discuss where the product should go. Actually, they were letting us know what they were going to do next. There were 17 agencies represented at the first unofficial AMS users' meeting in Atlanta though we didn't call ourselves by a formal name at the time — that came with the 1981 merger of ARC and AMS when we Series 1 Users were folded into their organization. Our insightful AMS hosts gave us private time together and we agents started talking about what functionality was needed to move our automated agencies forward. Hence, the seedlings were planted for agents to help direct the vendor towards their specific needs. AMS is terrific today doing exactly that — listening to the user input and developing products to meet and exceed our expectations, e.g., AMS360, a revolutionary new agency management system built on the Mircrosoft.net platform.
It became our focus to educate everyone in the agency from the newest hire to the agency principal. In those early years, working with an agency principal husband and having many more as friends, I can attest to the fact that most of them thought they would never have to touch a computer in their lifetime. We developed tracks of education specifically for principals and managers that intrigued the company folks and brought the principals to our conference by the hundreds. I would venture to say that the majority of agency principals are highly automated today and cannot function without their computers. Change comes slowly, but with great perseverance and commitment, it is achievable.
In working with the AMS Users' Group as a volunteer through the years as well as having close relationships with multiple carriers through agency work, I got to know many other industry personalities. I never planned to do anything but work "part time" in the agency (reality was 8-14 hour days) as the automation manager. So, no one was more surprised than me when I had the opportunity to serve on the AMS Users' Group and ACORD Boards. Both were great experiences that broadened my horizons and educated me even more as to the realities and dreams of the insurance industry and our varying ways of doing business.
S.B. Over the years you've undoubtedly witnessed a number of cycles and high and low periods in the evolution of industry technology. Can you recount them and elaborate a bit?
L.R. As in all things, ignorance is bliss! When we installed our first agency management system we were thrilled to have an automated name and address customer list with policy numbers, effective/expiration dates, and the writing company. It was miraculous to generate that Expiration List for the next month or two and when we could do it by producer and carrier, we thought we had died and gone to heaven. Obviously, we have come a long way!
Dimond Bros. Agencies beta piloted three agency management systems through the 20 years I served as their automation manager. Each new system brought exponential challenges to our agency family because of the evolutionary complexity of rapidly changing agency requirements. Some systems were much more stable, even in the beta phase, than others. It's always difficult for agencies to anticipate the traumatic effect of a new automation system (especially beta products) considering the learning curve, individual work ethics, and commitment by management to support a new decision. Planning, planning, planning and education, education, education is key. Dimond Bros. producers were reluctantly automated in 1995. Today, the entire agency workforce is extremely automated and less averse to change because new systems are much more intuitive in workflow capabilities and ease of use.
We are actually coming into a very dynamic technological future that is filtering down to our industry as well. ACORD XML Standards, Open Source and other capabilities are and will affect the way we do business today and in the future. It's such a relief to see vendors providing solutions in months instead of years for secure data transfer complexities that have plagued us for decades. I predict great changes in our very slow-to-change industry because of aggressive thinkers who are bringing workable solutions to our desktops now.
S.B. The AMS Users Group has also experienced some high and low points of its own. Inasmuch as you've seen them all from both a user's and a leader's point of view, what were those critical points and how did the group emerge for the better or worse from them?
L.R. When you have a totally volunteer organization that is built on mutual agent needs, one would think the recipe for success is pretty simple. All of us know that is not true since we are all independent agents — emphasis on independent — which means we all do business in our own unique way serving our own unique geographical customer needs. Throw in small, medium, large and jumbo agencies with single, multiple, and international locations plus everyone using a variety of systems on various software levels and the challenges just keep coming.
Now consider a vendor who has rapidly grown through acquisition like many of their customers and you bring in a whole new mix of agents who are not necessarily happy to be an AMS user. The AMS Users' Group worked very hard to welcome new, acquired members and make them feel a part of our organization. Encouraging their active participation on user group committees, at the local chapter levels, at national conference, and on the board seemed to win them as friends and fellow volunteers. They have become one of the users group's greatest assets tgh the years.
S.B. Tell us about the user group's decision to create this new position called "industry advocate." Certainly your experience qualifies you for it. Were you asked to fill the position or did you lobby for it?
L.R. The position is the brainchild of Roy Riley, President of the AMS Users' Group. Roy, the executive committee, and board could see the limitation in an all-volunteer organization where people move through the chairs each year. The need for a consistent voice and face in the industry will enable the AMS Users Group to achieve results on their key issues more rapidly.
Roy had sent out a position prospectus for review by the AMS Users' Group Board and Past Presidents. I had retired from Dimond Bros. eighteen months earlier and was considering starting my own business. As I read the details, I thought it sounded great and hoped the users group followed through with the position. It was innovative and made perfect sense. Approximately a month after reading the e-mail, I literally woke up in the middle of the night and thought it sounded like my idea of the "perfect job". After applying for the position and interviewing along with other candidates, I was thrilled and honored to receive the call to serve as the first AMS Users' Group Industry Advocate.
S.B. Your new title includes the word "advocate," which suggests something of an activist role with an agenda in mind. Please elaborate on your job description and what you plan to do. What is your agenda and how do plan to go about carrying it out?
L.R. Technology and education are still the keys to bringing competitive advantage and workflow efficiencies to every independent agent. The AMS Users' Group is committed to providing the very best service outward to our customers. In order to do this, we continue to work with carriers to convince them to eliminate redundancies in our mutual workflows. If we're more efficient, so are they. Profitability becomes a given.
Technology and education are still the keys to bringing competitive advantage and workflow efficiencies to every independent agent.
My primary function this year is to work with AMS and carriers to bring user input to their attention. AMS announced TransactNOW at the AMS Users' Group National Conference this past March. The agents love the ability to access the carrier Web site functionality directly from their management system saving them immeasurable time in answering customer questions in real-time. TransactNOW is in the inquiry stage, but as more agents and companies use the product, the functionality will be enhanced greatly. It is a cost effective solution for carriers and agents alike with a simple implementation process for the agency.
The AMS Users Group supports the work of ACT and AUGIE on serious industry problems. I will be representing the AMS Users' Group on various workgroups, along with other AMS users, and within the industry as needed. Working with AMS and carriers to improve Commercial Download will be another big issue on our agenda this year. Jeff Yates has published an excellent report from ACT on the subject. It is up to all users groups to get busy and let our vendors and carriers know how important this issue really is to gain effective efficiencies in our agencies. AMS is proactively working with carriers on this vital issue and has had several successful meetings with great input.
S.B. In recently published articles, both IIABA's Jeff Yates and former SAFECO v.p. John Carmody expressed similar views about agent involvement in industry-wide technology initiatives. In essence, they expressed a "use it or lose it" sentiment, suggesting that agents need to be more aggressive in adopting currently available technology as well as more forceful in presenting their case for technology initiatives they say they want. I agree, but add that many agents also naively believe that agency-company solutions should be borne primarily by carriers and at carrier expense. Where do you weigh in? To what extent do you agree or disagree? Have agents been slow in adopting available alternatives? Have they been weak in making their case and/or unwilling to put their money where their mouths are? If yes, why? If not, please provide evidence to the contrary.
L.R. Unfortunately, everyone in the agent, carrier, and vendor world is so overworked it's easier to be critical than to sit down together and find a common solution for our long-standing problems. Yes, some agents have been slow to adopt currently available technology because every carrier does something different. Each member of an agency has a zillion passwords to remember because our industry has not addressed the password standards issue to simplify the workflow out to the carrier website. The simple truth is, agents need to begin and end in their agency management system on any given transaction. But most would be thrilled if they only have to input the information in one time and either get it back to their agency management system via frequent daily batch downloads or in real-time. The fear of E&O claims keeps agencies critically conscious of having a synchronized database. The agency trusts that its database is accurate.
Carrier Agent Councils used to be about socializing and playing a little golf because the agents attending the meetings didn't necessarily understand automated workflow issues. Today, generations of agents are feeling the frustration of getting the attention of the "right people" at the carrier level and expressing their views just as carriers want to get to the CSR and producer to educate them on their products. Agents are much better educated today, but in spite of high levels of automation, lack of communication is still our industry's biggest problem. We have multiple disconnects that lend themselves well to increased frustration on everyone's part. The AMS Users' Group can help address agent/carrier issues by offering access to our user base through local, regional, and national meetings. This will impact the carriers' costs because we already have the meeting mechanism in place at the grass roots level and a superb, professional, national staff led by Executive Director, Susanne Buyck.
Agents are making a capital expenditure for agency management systems and related third party software licenses every few years. That doesn't take into consideration what is spent on hardware, too. Even though hardware prices have come down, most agencies continue to grow and need more technology tools year after year.
In the current hard market and economic climate, agents continue to invest. The carriers have decreased commissions to their sales force, the independent agent. This is, in and of itself, a form of involuntary agent investment that companies overlook. Agents also make a concerted effort to maintain their human resources instead of laying off their workforce in hard times. This has created a world of overstressed, mistrustful employees or former employees in other businesses, which leads to economic chaos. The independent agent looks at the vertical and horizontal scope of their business and tries to maintain balance in tough times.
Whether agencies have invested in a dedicated systems administrator is something else. This is the person who will research the feasibility of carrier products and commit to setting up and maintaining all of the software, passwords, and whatever else is needed for each and every unique carrier. It is definitely a fulltime position and one that will reap rewards back to the agency and carrier alike. If an agency does not have someone in this role, they will be a very slow tecogy adopter.
S.B. You've observed the never-ending SEMCI issue since day one. Now that emerging hybrid interface alternatives and other Internet-based solutions appear to be on the verge of rendering SEMCI moot, what are your opinions or ideas? Is it time to discard the utopian view of ideal SEMCI and get on with workable solutions even if they're not yet totally perfect?
L.R. Definitely! Incremental progress is better than no progress at all. SEMCI isn't a product; it's a workflow. The AMS Users' Group, as defined by President Roy Riley, is using this 21st century SEMCI definition: "The efficient and effective transfer of information in an insurance transaction."
I really don't think the agency force cares how the vendors and carriers get the job done, as long as they get it done. I'm still a believer in the goals of SEMCI and will continue to persevere. Technology is enabling the industry to look at the issuith new eyes.
S.B. Considering what you've seen, how you envision your new role, and your expectations of developing industry technology, look into your crystal ball and project where agency automation will be in the next five years? What will it take to get there, and what do agents need to do to enhance their ability to reap those benefits?
L.R. It will continue to take a great deal of hard work and much greater levels of personal communication and discussion between agents, carriers, and our vendors. Great rewards are on the horizon and the AMS Users' Group plans on leading the effort.
There will be a concerted effort between agents, no matter what their agency management system, to gather together and openly discuss their mutual challenges. In the past, carriers have led the charge toward where our agency business is going. There is a new trend for agents to define and advocate their own direction. Agents are consistently seeing carriers play vendors against each other when, in reality, our agencies only want a solution to improve sales and service for our customers.
My crystal ball tells me that agents will strongly be advocating and looking for timely resolution on these issues: 1) credit card payment of agency billed policies through the agent's Web site with equitable carrier/agent cost sharing of the transaction fee; 2) much improved Commercial Download; 3) pushing ACORD for Password and Claims Download resolution and more critical agent related standards; 4) continued carrier/agent dialogue that hits to the heart of our workflow issues and how we can work together to resolve the problems; 5) working directly to address the "Paperless to the Agent" (a soon-to-be-published ACT paper) and contractual issues with our carriers and the industry; 6) engaging the privacy and security crisis before it becomes a real crisis and before the lawmakers decide for us; and 7) continued work towards SEMCI.
It's easy to be negative and not invest in the future, but those who do commit in time, energy, ideas, and dollars will reap great rewards. Our industry was built over a century in time, so our goals will take time. Independent agents are more important today than ever in the fearful world we now live in. Technology is only a useful, necessary tool to accomplish our goals. It is our job to bring some peace of mind to our customers and extend a helping hand in time of need. There is no substitute for human touch and concern. The AMS Users' Group is reaching out and advocating change. My hand is extended to work with the industry and beyond to accosh our goals.
S.B. Thanks, Linda, for taking the time to talk with Sounding Line. Good luck with the new position — you've got your work cut out for you the next three years.
L.R. Thank you for asking me. It looks like an exciting time ahead for me.
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The need for a consistent voice and face in the industry will enable the AMS Users Group to achieve results on their key issues more rapidly.
Agents are much better educated today, but in spite of high levels of automation, lack of communication is still our industry's biggest problem.