Business Systems Plan for the Insurance Commission of a Mid-Atlantic State
Business Problem:The insurance department of a Mid-Atlantic state was unable to process agent licensing and appointment requests in a timely manner. There was little control over the process as license applications were simply passed to the next available examiner as they arrived by mail or fax.
Information had to be entered into several antiquated systems and all correspondence with the agent was done by telephone. Backlogs were an every day occurrence. Agents and insurance companies became disgruntled when calling the insurance commission for a status. Agents are not permitted to sell insurance unless they are licensed and appointed. It took an average of 8 weeks to process license applications.
The governor initiated the study with the stated goal of improving performance while reducing costs.
Solution:RESolutions Consulting analyzed all business processes and the technology that supported them. RESolutions Consulting then developed a plan that defined areas where performance would be improved with the proper infusion of technology. This included a modern server backbone, telecommunications requirements, electronic in/out-bound faxing, email, application recommendations, and training. Also included in the plan were estimated costs, time lines, resources, and return on investment.
Return on Investment (ROI):The insurance commission implemented the recommendations made by RESolutions Consulting and was recognized by the Governor for demonstrating how modern technology can significantly improve business performance.
The following is a partial list of the ROI achieved by the insurance commission:
- Agent license processing was reduced to 2 weeks
- The backlog was eliminated
- Examiners overtime was eliminated
- Agents and insurance companies could easily get a status of the application by calling one 800 number which eliminated examiner intervention
- A central repository and an associated electronic folder application coordinated all activities associated with the licensing process.
- All documents were scanned to eliminate paper folders
- Automated fax routing reduced errors and loss
- Cash was easily reconciled
- Work could easily be distributed as work load changed
