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SMA's Insurance Transformation, Where Strategy Meets Action

Deb Smallwood

Insurance Agency Series: Protecting E&O Exposure

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Key questions for Agents to consider:

How are processes documented and tracked for prospect and client interactions?
Do they include the proper time and date stamp and audit trail? How exposed is your agency?

E&O is estimated to be a $500 million dollar annual expense for agents and is considered a cost of doing business with approximately 90% of all agencies carrying E&O protection. However, the coverage and limits are sometimes not adequate, presenting significant financial risks.

Today, agencies are interacting with customers and carriers through a complex set of delivery and distribution channels such as phone, fax, paper, e-mail and the web. Creating an audit trail of all correspondence, conversations and communications with time and date stamps can be expensive and challenging.

In a litigious world where people make mistakes, a complex paper-driven process has a higher chance of error. Automation can reduce human error while also providing a fast and easy way to provide audit trails for claims processing and in this way actually help close out cases.

2 Comments

There is alot to know about E&O Insurance before you select the best policy for you. There is alot of information that is sponsored by the National Ethics Bureau (www.ethicscheck.com) available on the website www.EOforLess.com and you can research the different types of coverage that are available for Preferred Risk Financial Advisors and Insurance Agents. If you have any further questions we would be happy to answer them for you!!

Ian

Errors and Omissions insurance is a critical component of the operations of an insurance agency. Often we find insurance agencies don't do the same due dillegence for their own policies that they do for their clients. Good Post.

Mike Smith
Axis Insurance Services LLC
www.axisins.com

The purpose of the SMA blog is create a dialogue around insurance transformation; launching a different perspective on linkage between strategy, process and technology choices and shifting the mindset from a technology driven approach with SOA & BPM to a business driven service-oriented thinking that creates agile and flexible new insurance business models. Look for a wide gambit of trends, research, case studies, and insights on making transformation a reality.

Deb Smallwood

"I grew up in the insurance industry and have experienced the shackles that ineffective business processes with misaligned monolithic technology solutions have placed on insurance companies...

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Karen Furtado

Karen Furtado brings a wealth of industry knowledge to SMA. She spent 25 years at CGI, focused in insurance. Her specific areas of expertise include product development, complex system implementations, vendor selection processes, project management and business and IT outsourcing services. Her passion is working with both technology providers and carriers to deliver high-value solutions for core issues facing the industry. Karen actively participates as an industry speaker.

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