Data Sheet - pre-bind workflow

Profiting from improving the Pre-Bind Process

David Ballard, consultancy director, Northdoor.

Agencies in The London Insurance Market (LIM) are talking of how to become faster at offering policy quotes…or rather faster while being smarter. Faster decision making for good service to customers and brokers. Smarter in terms of applying more scientific analysis of contract and aggregate risk to ensure that holistically, new business is good business; business which does not for example, over-expose the agency.

Workflow

Large insurers have for many years recognised the value of ‘workflow solutions’ to improving administration effectiveness. They process a large volume of policies, each of relatively modest value when compared to those of the LIM. For large underwriters, a small improvement in workflow efficiency can offer a high return on investment by helping identify good business quickly and improving customer service to brokers and their clients.

“Workflow” is simply the rate of progress of work done by a business, department, or person. Workflow solutions typically make procedures systematic. They automate processes, route paperwork and prompt actions on people, so that delays are minimised while governance processes are enforced.

But for the relatively small agencies that are the LIM, writing high value but low volume business has meant that investing in new systems and processes when ‘existing ones have worked fine until now’, has been hard to justify. But at the pre-bind level especially, it is now at least a hot topic of conversation.

More complex

The LIM is becoming increasingly competitive, demanding keen pricing, speed of response and good service, while additionally, according to a recent PriceWaterhouseCoopers survey, capital providers are setting higher rates of expected returns and also demanding greater sophistication in choosing what business is written in order build a ‘balanced book.’ On top of all this, Lloyd’s and FSA compliance is becoming ever more strict. The LIM is certainly becoming more complex.

The net result is that policies and procedures are becoming more sophisticated and agencies are having to become more systematic in their pre-bind activity. Hence the interest in workflow solutions to not only enforce approved processes, but automate many of them and remove delays in processes that must remain manual.

Solutions

Fortunately, LIM agencies do not need to be experts in workflow solutions themselves in order to implement them. An insurance systems consultancy such as Northdoor, which understands the LIM and the intricacies of the pre-bind process can analyse existing business workflows and compare these with forward looking business objectives. It can then present suggested new policies, procedures and processes. The consultancy can then implement the agreed ‘workflow solutions’ and provide any training needed.

A document management system (DMS) might typically form part of the solution, capturing paperwork and decisions in a central repository and providing an evidence-base and audit trail. Microsoft SharePoint Server is one example already being used by several agencies. It offers electronic forms and out-of-the-box workflow processes through which users can initiate tasks, track them and participate in them through familiar Microsoft Office applications, email and web browsers.

Once a best-of-breed solution for pre-bind workflow is in place, it could be integrated later with other processes and applications; such as policy administration and claims processing to bring further efficiencies without huge expense.

In Northdoor’s experience, supported by off-the-shelf applications, experienced insurance workflow consultants can analyse existing pre-bind processes, consider best practice and preferred procedure, re-design workflow and implement a solution in just a few months. Three to four months is reasonable for a typical agency of around 100 staff.

With the ever-increasing complexity of the LIM operating environment, those who are both swift and smart have the opportunity to select the right business at the right price and level of risk – as well as then follow-through with good service to the broker and the client.

Investigating the world of workflow solutions via an experienced LIM solutions consultancy is a simple step. For those early to the table, it could mean winning a great deal more business: not just any business, but the right business.

David Ballard is a founding member of Northdoor, an IT consultancy of over 110 people based in London.  Northdoor offers lifecycle IT solutions; consultancy, design, procurement & build, implementation and lifetime support of IT environments – to all sectors with an emphasis on insurance and financial services. He can be reached via www.northdoor.co.uk