Solutions for Multi-Location Agencies

Now available ... and affordable for all agencies!

by Ron Webber  

With pressure on profits, and mergers and buyouts becoming  commonplace, more and more agencies are operating multiple offices.  This naturally creates a great deal of interest in connecting the computers at remote locations to a central office agency management system.  

Agents and their computer technicians have tried just about every

possible way to take advantage of the new fast, inexpensive data lines like DSL and cable modems to connect their insurance agencies together without much success.  Even with the new fast data connections, most of the solutions are just too slow to be used on a day-to-day basis.  

Some agents, in their quest for greater efficiency, have tried the

"sneaker net" method.  Every day the data at the branch offices was

transferred to disk or tape and sent to the main office and added to the main database, but this leaves the branch offices with no real time data, and sometimes the upload to the main database hiccups and the data becomes unusable.  And there are other drawbacks to this solution.  For instance, the branches don't have access to all of the data and only know about their own customers.  

A solution I have seen that does work is from Citrix Systems. It uses

something called thin client technology to connect the computers at the branch offices to a server computer at the central office, giving

everyone at all offices access to the agency's management software. Citrix works well because, in simple terms, it only passes the screens and keystrokes up and down the information highway resulting in fast operating speeds. But Citrix has its drawbacks.  It is an expensive solution, costing $10,000 or more per location to get up and running and usually requiring installation and maintenance by a Citrix Certified computer professional.  

The Internet has changed the way we live and work.  And thanks to the Internet and the wide spread availability of high-speed Internet

connections, an affordable and efficient solution for multi-location

connectivity agencies is now available.  An Application Service Provider or ASP provides highly reliable server computers housed in secure data centers with agency management software installed.  The data is accessed over the Internet preferably via a high speed DSL or Cable Modem connection.  The data is backed up daily and the ASP keeps the programs up to date for the customer.  The programs and the data can literally be accessed from any location there is a phone line.  This gives management great flexibility with store locations, reporting, and employee utilization.  

Owners away from the business can dial in to the Internet and get up to the minute reports on production and bank deposits. The agency's customers benefit by receiving the best possible service

because they can go to any location to buy insurance, make a payment or request service.  

The ASP can offer even more benefits.  For instance, if you were at a

car show or a dealer's tent sale and wanted access to your data, all you need is a laptop with a modem and a phone line. Or in the event of a disaster of some type in your area, from a building fire to a tornado, all you need is a laptop computer and a connection to the Internet to back in business. The flexibility is unlimited.  

Just how affordable is the ASP solution?   Most insurance agency ASPs have a modest startup fee and then a monthly fee for each user logged on.  The huge capital outlay is eliminated.  A typical six office, 15 user agency could expect to pay as little as $4,125 to start and $60 per user per month.  This is a tremendous savings from the traditional solution, which might require as much as $60,000 up front and $800 per month for a six-office agency to maintain a full time connection to a central agency management system.  

If the ASP solution sounds good to you, there are some things you should consider. Make sure your ASP is reliable and has a mature product available for your use. Remember all the dot-com companies that sounded great last year, but no longer exist? When you are approached by E-This.com or I-That.com, check them out thoroughly. How long have they been in business? Do they have a mature product that has stood the test of time? How is their product support? Can they help you with technical questions and help you apply the product to the way you do business? The ASP should be able to provide a safe, secure environment for the storage of your data in its data center. Firewall protection, frequent back up and dependable data storage should also be provided.  

The real advantage of the ASP solution is that it brings strength to the

independent insurance agency system.  Can the Mom and Pop operations survive in the future or will the chains, franchises and direct writers dominate the independent industry? The ASP will make it affordable for almost every agency in the country to operate small remote sales offices, to service and sell insurance to the public. Operating a central processing office for all locations with real time access to data for all locations can be a reality for almost anybody.

Automation will make you more productive.  Automation will make you more profitable.  Automation is the management tool you need to manage your agency and succeed!  

Until next month, keep automating those agencies; I really believe the only way that you are going to survive in the 21st Century is to

automate.        

Remember, the bottom line is "Automation equals Productivity and Profitability."  

Ron Webber

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