Are your employees still doing things the same way? Is the agency still afraid of that potential E&O claim? Do employees still perform tasks in exactly the way that everyone agreed on? Unless there's an auditing process in place, who knows? That's why it's wise to review your procedures today, using one of the five methods presented by Grace Bauer in this article.
AUDIT THROUGH WEEKLY MEETINGS
I believe that auditing through weekly meetings is the easiest way to go. Because you work with your staff day after day, you can already identify some problem areas. For example, if your agency is having problems with one or more employees invoicing incorrectly, bring up the problem in a meeting as a group.
If these employees are still having problems, ask them why they're not following the procedures on which everyone agreed. If there's a need to change the procedure, discuss it as a group. See what they have to say. They'll probably either suggest an idea to consider or just plain say, “Yes, I know. I need to work on that.” At least, let's hope they say that. If not, it's time to write them up.
AUDIT AS A GROUP
When using this method, it's wise to audit only one procedure per month. For instance, when auditing the binder procedure, first develop a checklist of what to review during the group auditing process.
Some areas to review include:
- Making sure that the insured has requested or approved issuing the binder.
- Issuing a 30-day binder.
- Requesting binders from those companies for which the agency does not have binding authority.
- Issuing additional binders after 30 days if the policy is not received within the 30-day period.
- Reviewing the way in which the binder was completed in the system.
- Using a 30-day suspense when issuing a binder.
- Using and reviewing the binder log on a monthly basis.
Once you've compiled this checklist, the rest falls into place. Have a meeting with all CSRs/Account Managers, print the information requested to confirm all items on the list, and then have the CSRs/Account Managers check off each item while it's being reviewed as a group. Once the check is done, review any areas in which CSRs/Account Managers might be having problems. When the review is complete, have each CSR/Account Manager forward the copies of the checklists to management for review and filing. That's all it takes.
HAVE EMPLOYEES AUDIT EACH OTHER
A few agencies with which I've worked find this method of auditing to be fun! This process is identical to that for an Audit Group, except that each CSR/Account Manager switches files so that they're auditing one another instead of themselves. This is probably an even better way to go because the audit process will be more objective.
DO MONTHLY INDIVIDUAL EMPLOYEE AUDITS
This is probably the most labor-intensive way to go. After developing a detailed checklist for every single procedure as noted above under Audit as a Group, the employee will need to review every single item on the checklist. Remember that there are about 70 Property and Casualty procedures, and you'll need to develop a checklist for each one. Because this approach is so labor intensive, I wouldn't recommend it.
DO A MANAGEMENT AUDIT REVIEW CHECKLIST
This final option is for management use only and includes a review of such areas as individual accounts, binder logs, claim reports, cancellations, backlogs, expiration reports, etc. The list goes on and on for every single procedure. If you'd like a copy of this checklist, call me at (800) 896-4226 or e-mail me at [email protected].
CONCLUSION
Whichever way you decide to go, just do it ! There are five options: Auditing through weekly meetings; auditing as a group; employees auditing one another; monthly individual employee audits; and the management audit review checklist. If there's another option, go for it. Audit your staff to improve efficiency, secure consistency, and help prevent E&O claims!