Tag Archives: study

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Technology in the New White House

The Obama campaign for President is a study in how to effectively use technology to communicate with people. Yet as the new staff moved into the White House offices in January, they found themselves in the technological Dark Ages.

As Obama officials try to bring the same social media sophistication they used in the campaign to governing, they have run smack into the constraints of federal bureaucracy, encountering a jumble of disconnected phone lines, old computer software, and security regulations forbidding outside e-mail accounts. That means no Facebook to communicate with supporters. No outside e-mail log-ins. No instant messaging. No BlackBerry for the President. For a staff that mastered relentless online social networking, it will be an adjustment.

One of the first changes was the launch of the new WhiteHouse.gov Web site which became active minutes after Obama took the oath of office. One of the issues is that due to the Presidential Records Act, all office work must be preserved. It will be interesting to watch how the new administration will enable more open communication options within the constraints of government regulations.

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Industry Use of Technology—The Latest Numbers

The latest Future One Agency Universe Study was recently released by the Independent Insurance Agents & Brokers. This study is considered one of the most comprehensive sources of information about the independent agency distribution system. Since 2000 the study has been completed biannually.

The most recent study was conducted in the spring and summer of 2008 and included 1,874 respondents. Ninety percent of those responding were agency principals, presidents, or CEOs.

While the survey produced a number of very interesting findings, below are results that show how agencies are utilizing (or not utilizing) technology.

One of the top 10 findings is that agents are doing more with less. “Agency operations are becoming measurably more efficient. Apparently, agencies are able to do more work with fewer employees. Increased usage of technology likely contributes to more efficient processes.”

While I’m encouraged by this finding, the details of the study show that there continues to be room for improvement in a number of areas. Many agencies are not utilizing technology as an effective tool.

  • 82% use an agency management system (compared to 87% in 2006, although this study included a greater proportion of small agents). 50% of small agents do not use an agency management system.
  • Traditional advertising continues to be most used by agencies, with 24% using Yellow Pages, 15% using print ads, 11% using radio, TV, and billboard. Only 7% use their agency Web site as a marketing tool, and only 2% use any kind of electronic marketing.
  • 37% agreed or strongly agreed that it is important for the agency to be accessible to their clients 24/7.
  • 35% of agencies reported having a paperless office. 54% stated they were going paperless whenever possible.
  • Agency customers increasingly use electronic means to communicate. E-mail usage has increased from 55% in 2006 to 70% in 2008. 21% of agencies report that clients are obtaining certificates of insurance through the Internet.

Thoughts about these statistics

  • The industry needs to realize that new generations of prospects will not be looking in the Yellow Pages for insurance information. Agencies need to begin experimenting with and utilizing the Internet and other electronic marketing options to find and attract these new customers.
  • I am probably most disheartened by the 63% of agencies that said it is not important to be available to clients outside of normal business hours. Clients obviously want to communicate with agencies electronically. It is a small step—and the technology is readily available—to allow clients to communicate with you off-hours.

Agencies are making changes and learning how to effectively use technology. This will increase efficiency and improve customer service. But the new reality is that change is constant. Every agency, regardless of size, needs to continue to adapt to changing customer wants and needs.

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Economic Downturn May Push Number of Uninsured Motorists to All-Time High

The number of uninsured motorists may reach an all-time high, according to a report released by Insurance Research Council in January. Their study indicates that approximately one in six drivers across the United States may be driving uninsured by 2010.

Although the estimated percentage of uninsured motorists decreased nationally, from 14.9% in 2003 to 13.8% in 2007, the recent economic downturn is expected to trigger a sharp rise in the uninsured motorist rate. The IRC estimates the uninsured driver population using a ratio of insurance claims made by individuals who were injured by uninsured drivers to claims made by individuals who were injured by insured drivers. This reinforces the need to communicate early with your existing clients about the options available other than letting their policies lapse.

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2008 Best Practices Study Released

Once every three years, the Big I asks its insurance company partners, state association affiliates, and other industry organizations to nominate those agencies they believe to be among the most efficient and high performing agencies in the industry for each of the study’s revenue categories. These agencies are asked to submit operational information in many areas. This information is carefully evaluated and ranked, culminating in the choice of the top 30 agencies in each revenue category. These agencies earn the status of “Best Practices Agency.”

Overall, this year’s study shows that agencies are doing much more with fewer people, and organic growth rate is much stronger than expected. When asked the reason for their success, the new crop of Best Practices Agencies said, overwhelmingly, regardless of agency size, “the quality of our people.” This quality can be defined as a strong work ethic, expert knowledge in agency products and services, as well as high ethical standards and dedication. These factors, coupled with advanced proficiency in agency technology, allowed the 2008 Best Practices Agencies to push productivity levels higher than ever.

Although positive revenue growth was difficult to achieve, Best Practices Agencies continued to invest in new production talent. The majority of agencies with revenues over $2.5 million hired at least 1.5 new producers during the last fiscal year, with the largest agencies hiring an average of 9.4 new producers.

The average starting salary across all revenue categories ranged from $52,000 to $95,000. The largest agencies, those with revenues over $25 million, tended to hire more experienced producers, while those in the lower revenue categories tended to hire producers with less sales and/or insurance experience.

The study and a listing of the 2008 Best Practices Agencies can be accessed at www.independentagent.com, www.reaganconsulting.com, or at bp.reaganconsulting.com.

Through this site, you can also view an HTML version of current and past executive updates, download a Best Practices comparison spreadsheet to compare your agency’s year-end results with the study’s results, and access other Best Practices studies, tools, and products and download order forms.

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Keep Track of Your Laptop

Every day, business travelers are putting the sensitive and confidential data of their organizations at risk when they travel through airports. Although companies are dependent upon on a mobile workforce, this mobility is putting companies at risk of having a data breach if a laptop containing sensitive information is lost or stolen.

Sponsored by Dell, Ponemon Institute conducted a study, Airport Insecurity: The Case of Lost Laptops, to understand the current risks posed to sensitive and confidential data contained in the laptops of business travelers. According to the study:

  • Business travelers lose more than 12,000 laptops per week in U.S. airports.
  • Only 33% of laptops lost and found in airports are reclaimed.
  • Over 53% of business travelers say that their laptops contain confidential or sensitive information. However, 65% of these travelers admit they do not take steps to protect or secure the information contained on their laptop.
  • According to U.S. airport representatives, the most common airport locations where laptops are lost include security checkpoints (40%) and departure gates (23%).

This study highlights the fact that every laptop in your agency should be secured and encrypted to make sure that personal customer information is protected in the event the laptop is lost or stolen.