work isn't getting any easier
By
Ben DiSylvester
Executive Director
The growing use of Web portals by
agents and customers to perform transactions previously done inside
companies is having a profound impact on organizations. These
technologies are making it easier to quote, submit new business,
change policies, and they are shrinking service cycle times.
However, while this helps customers and agents get things done when
and how they want, there is the potential paradox of making things
harder inside insurance companies. Here’s why:
Work is more complex and less routine.
Agents and customers can complete the self-service transactions as
long as they fit the norm. When the transactions become complicated,
underwriting, customer service, or the call center has to get
involved. Much of the remaining work for the internal staff is more
complex and less routine. To address this, companies will need to
rethink how they select, train, and develop people for customer
service positions. Minimum education levels and scores on aptitude
tests will have to be re-evaluated along with salary levels as
“clerical work” disappears.
The design of the portal and interfaces is the new
field of competition.
The abstract nature of insurance is coming alive in the form of
Web-based processes. As customers rely on these systems more (and
almost 100% of companies surveyed say they are working on them),
insurance companies will be judged on how easy their portals are to
use. Agents already say that ease-of-use greatly influences their
placement decision. As customers gain more exposure to these
systems, their decision to renew or switch to another carrier will
also be influenced in the more commoditized lines of personal
insurance. Companies must approach the design of their portals much
like they approach the design of their processes; more so because
customers themselves are using those processes. The scope of these
designs must go beyond the underlying technology. They must be easy,
intuitive, and fully supported on the back end. It will be important
also to elicit continuous feedback from customers and agents so the
designs can be continuously improved.
