SYSTEMS SCENE

* imarket - integration

* Introduction of new data input form

* BIBA Schemes now available

* New IT system for Arista

* MCE - new interactive website

* Aggregator grievance

Writing an article each month such as this is very much f reliant on information being received

I have been reliably informed, by imarket themselves, that currently Insurecom have yet to make available to their users any fully integrated products through the imarket portal. I am sorry for any false hope I may have given to Insurecom users who have yet to gain any benefit from the trading efficiencies integration imarket can deliver to them.

I remain convinced that imarket only really begins to come into its own once software houses provide their users with a range of fully integrated products from a number of competing insurers. The limitations of a quotation-only facility provide little, if any, efficiency gains for the broker; for example the absence of a direct link into their administration system requires considerable re-keying of data.

So where are we with imarket integration with broker systems? Well the sad truth is that at the time of writing only two software houses have so far made the facility available to their users, Acturis and Sirius. Acturis is the clear leader in that they have developed seven product ranges with up to seven insurers. Sirius users have access to three insurance products from up to five insurers. The good news for Open GI users is that their software house is now ready to launch a range of integrated products across four business lines, Commercial Combined, Shops, Offices and Tradesman with a selection of insurers for each. This should have a further positive impact on the number of transactions made via the portal which saw volumes more than double in the last 12 months. Hopefully it will not be too long before users of other systems will also be able to enjoy the benefits of imarket integration.

imarket introduce new user friendly form

Following feedback from users, imarket has replaced the old xform with one that is more user friendly. Many brokers found the xform rather cumbersome to use. It was basically an on-screen proposal form that had been compiled to meet the various diverse demands of the insurers and risks scenarios. It was necessary to navigate through each and every question, many of which would be totally irrelevant to the risk in question.

The new form takes an entirely different approach. It uses an intelligent approach and only asks questions that are relevant to the risk details being inputted. Consequently it is much easier and quicker to navigate through the questions. Insurers should also benefit from the new form as it should make it easier to add new products.

BIBA scheme quotations now available via imarket

Yet more positive news from imarket is the announcement that quotations for the full range of BIBA schemes can now be obtained from the portal thus creating an even wider choice of insurance products. Following a successful partnership agreement, BIBA's advanced portfolio, comprising some 20 additional products, is set to provide a valuable boost to imarket's developing schemes library. "This agreement signals an exciting development for our members, enabling them to promote their schemes to an even wider audience," says Graeme Trudgill, technical services manager at BIBA. Peter Knowles, strategy and marketing director at Polaris adds: "An ever increasing number of products and services are populating the portal and we are delighted that BIBA is supporting us. This welcome initiative means brokers can now benefit from an increasingly diverse and abundant array of options." I also understand Polaris is keen to hear from brokers wishing to have their schemes promoted via imarket.

New IT system for Arista

Arista, the underwriting organisation launched last year, has entered into a partnership with SSP to launch a new customised version of the SSP insight multi-functional IT system. The focus appears to be on the delivery of an enhanced level of service for brokers. The Arista version of SSP insight supports commercial lines risks and full policy life cycle administration. It will deliver statements of fact for all policies, electronic distribution of all documentation and web access for scheme brokers to self-service volume business. SSP will also work with Arista to develop the e-trading functionality it will offer to brokers.

Arista's chief executive, Charles Earle comments; "We are delighted to have jointly committed to a long-term five year partnership with SSP to help us further develop the system and our website in order to deliver an improved and friction-free service to brokers. As Arista is a relatively new company without any legacy systems, it was important that the new IT system we chose was easy to implement and use, yet flexible enough for us to respond to the evolving needs of independent brokers in the UK SME insurance market. By utilising SSP insight, we can rapidly bring new products to market as well as strip out the frictional costs that most other insurers inflict on brokers."

MCE launches new interactive website

Wellingborough based MCE is the first broker to go live with Open GFs complete web integration service. The service has been built using Open GI's e-Quotes and XML technology providing aggregator linkage. MCE's web development team designed the look and feel of the site in conjunction with Open GI. Consumers will be able to access the site 24 hours a day and are met with a fully interactive online quote and payment facility for a wide range of standard and non-standard private car and motorcycle insurance. The site has the ability to link with aggregators and is fully hosted by Open GI. The new site will be a major distribution channel for MCE; they expect it to account for 50% of the new business written in 2008.

Aggregator or should it be Aggravator'?

The growth in the number of aggregator sites has generated a fair amount of discussion in the last few months. There are those who clearly believe they are a great step forward, but on the other hand many are concerned about the detrimental effect to prudent underwriting that will occur as insurers cut premiums in order to chase business. It would be foolish for brokers to shrug their shoulders and say "so what, that is the insurers' problem."

Past experience shows that it is when insurers are struggling to make an underwriting profit that they put the most pressure on brokers to accept reduced commission which is never readdressed when profitability returns. Also a soft market leads to increased costs as a result of reduced renewal retention.

I am sure it will not come as a surprise to most readers that on occasions I have visited sites if only to see how well they perform. They do vary. Some have a more professional appearance than others, but generally they all claim to find the most competitive premium for a particular risk, even though none of them actually searches through the entire insurance market.

Maybe I am na?ve but I rather assume that when an insurance product is quoted by such a site it will indeed be the most competitive of all the schemes they have available, and more than likely it will be a product that, should I wish to accept, I should be able to do so electronically. We are, after all, talking advanced technology here, so human contact should be minimal if not eliminated entirely.

My recent experience with one site indicates otherwise. The site very efficiently produced a favourable quotation for my risk details but in truth my insurance was not actually due for renewal at the time, so I did not proceed further. I received an email confirmation of the quotation and I assumed that would be the end of the matter. But no! I, and my family in my absence, then received a number of phone calls both to my landline and mobile saying that they noticed I had not proceeded with the quotation and as a consequence would like to discuss with me the option of an even cheaper policy! My request to be advised as to why - if one was available - it had not been quoted in the first place appeared to take the caller by surprise as though it was perfectly normal practice.

I was left with the impression that my details had been sold to more than one insurer or intermediary, and that each of them would have been happy for me to accept the higher premium, but then use call centre staff to chase up the "not taken ups" with the lure of cheaper premiums. Cheaper premiums if I involve call centre staff rather than use the internet! Now that's a novel idea!

But that was not the end of the saga. There was one more subtle attempt to get me. They sent me a letter implying my policy with them (it certainly wasn't) was due for renewal and would I call them as they would like to discuss a premium saving with me.

Surely when a customer uses an aggregator site the last thing they expect is to be bombarded with follow-up phone calls and letters? Certainly I don't. Some are adopting questionable practices. So is my heading to this feature appropriate? It certainly is as far as I am concerned.