Real-time policy change has appeared on the Canadian insurance landscape, turning a potential weeks-long procedural rigamarole into an immediate resolution for brokers’ clients.
SGI Canada announced in March that it has successfully launched real-time policy change upload using Brovada NexExchange. By integrating Brovada NexExchange to its policy administration system, SGI Canada’s broker force is able to launch auto policy changes from within their broker management systems (BMS).
NexCenter is a BMS integration software in Canada designed to provide seamless communication between almost 1,000 brokerages and 50 insurer systems. NexExchange provides customized carrier-side integration to any policy administration system.
Brokers can now submit insurance policy changes to SGI Canada in real time, confirming both the changes and the updated premium prior to submission. Brovada’s technology supports all major BMS platforms; allows brokers to submit multiple changes in a single submission; and performs a real-time comparison to protect the system of record and minimize E&O exposure.
The new technology has transformed a pesky policy change inquiry, which generates no revenue for the brokers, into a simple same-day procedure.
“It’s a time-saving tool,” said Denis Duchesneau of Tannas Insurance Brokers Inc. in Alberta. “Without it, we would generate a change request and queue it for download into the SGI system. It doesn’t take long to do that, but we know it’s not going to leave our office for another two or three days. By the time SGI gets it, processes it and gets back to us, it’s going to be four to six weeks.”
But in real time, the process can be completed while the broker’s customer waits. “It may take a little longer to generate that change request, but by the time we’re done, it’s completed,” said Duchesneau. “We can put the file away for good. We would know that if the customer substituted a vehicle, it would generate a new premium, say, of $600. The consumer is right there. He can pay his $600. He gets his pink card. It’s done. From start to finish, we’d save four to six weeks.”
Using real time, the broker may spend additional time to generate the policy change request because the system is demanding; it requires all information fields to be completed before finishing the transaction. So brokers beware – no more sending out incomplete change requests to the insurer and letting the underwriter figure out how to fill in the blanks.
Penny McCune of SGI Canada said SGI is just now starting to use real time policy change for home business in Saskatchewan.
“We think it’s really going to help drive down the costs in the broker distribution channel, make brokers more competitive,” she said. “It brings efficiencies for both us and the broker.”
Thus far the policy change is only on simple matters. “Anything more complex, we will allow that to go through as well, but they might have to look at an underwriter,” said McCune.
But even if the policy changes can’t be done point of sale, the broker can input the information through the broker management system without any double entry into an insurance company portal.
Real-time “is for the non-value-added transactions that brokers spend a lot of time on, for which they do not receive a lot of compensation,” McCune said. “We are looking for them to be more efficient in their office so they can spend time with more complex type of policies and high-value customers.”
SGI Canada started with auto policy change, which is available in Alberta and the Maritimes. The insurer has just started introducing real time for home new business in Saskatchewan, Alberta and the Maritimes.
