AGENCY AUTOMATION: E&O FRIEND OR FOE? — PART 2: UPLOAD
by Curtis Pearsall
The previous article discussed the issue of download, in which carriers provide their agents with information on line. In this article, Curtis Pearsall looks at the issue of uploading.
More and more companies are requesting (some are mandating) that agents use uploading to provide online information on new and renewal business, endorsements, and so forth. In the past, an agent would complete an application and mail it to the carrier, who would receive and process it — a process that took days, if not weeks
Upload technology has not only streamlined this process significantly, but reduced many typical potential E&O claim scenarios.
For example, when a CSR handles a new business application for a customer and uploads it to the carrier, in most cases, the carrier will send back a message stating that the upload was successful and provide a tracking or confirmation number. If a claim were to happen within days of this app, there would be no doubt when it was sent in. In the old days of snail mail, there could be some serious questions whether (1) the company received the app and (2) if so, in what stage of processing it was.
In many E&O scenarios, the issue of date received or date sent can be vital. Upload technology provides a built-in hard coded date stamp, making it easy to show the exact date of the transmission. The agent should keep a copy of the confirmation number in the file as documentation. On the reverse side, if the CSR is delayed in sending in the application, it will be easy to show that the app wasn't sent when it should've been. The Postal Service, which has taken the brunt of many unfounded accusations over the years, can't be blamed. Effective internal time management and priority setting of accounts is essential.
Another advantage to upload is more timely policy processing by the carrier. Often, once the upload is transmitted, the system will automatically order a credit report (if applicable) and the MVR. This will permit quicker issue of the policy — and the sooner you get the policy from the carrier, the quicker the customer gets the policy. This will mitigate any confusion about the coverage provided or not provided.
It's essential to know and comply with the expectations of the carrier about upload. The company will usually require the agent to keep the original signed application in their agency file. Almost every carrier that uses upload will conduct an audit/review from time to time — and one area that they will check is the presence of signed apps. Companies have the same expectations with upload that they would with getting a paper copy.
Are there any negatives to upload? Not really. If you're getting involved in this procedure, I'd recommend meeting with your staff to talk through the process and the expectations of each party. Communication will go a long way toward ensuring that upload is a win-win-win situation for you, your companies, and your clients.
Curtis M. Pearsall , CPCU, AIAF can be reached at Utica National Insurance Group, P.O. Box 530, Utica, NY 13503, (800) 274-1914, fax (315) 734-2807, or e-mail [email protected]. This article originally appeared in the Utica National Insurance Co. E&O Bulletin and is reproduced with permission.