By Stan Sauerwein
Brokers in Alberta got welcome news from Custom Software Solutions Inc. (CSSI) last month regarding the onerous task of re-rating auto policies there.
As a result of auto reforms, brokers have been required to apply a new premium grid to all drivers in Alberta as of October 1. The premium grid sets the maximum price for mandatory insurance coverage for all individually rated personal passenger vehicles. IntelliQuote, the rating component of The Broker's Workstation that has been developed by CSSI, will now rate the premium grid.
The new rating tool will calculate a driver's grid level based on information provided or a broker may manually enter the grid level. CSSI's flagship product will identify the relevant and occasional drivers for each vehicle from data input into The Broker's Workstation and determine grid premiums. It will then compare the grid premium to the Company premium and rate using the lowest.
"The ability to rate using the grid is critical to our Alberta clients right now," says Jacy Whyte, the head of marketing at CSSI.
CSSI has recently completed development of an electronic data exchange (EDE) package of process automation tools that used The Broker's Workstation as a foundation. The Broker's Workstation includes a client relationship management tool, the IntelliQuote tool, a choice of integrated home evaluation tools and broker management accounting.
CSSI received a $1.175 million research boost from the federally-funded CANARIE project last year to develop EDE between Wawanesa Mutual Insurance and its brokers. Farrell Agencies in Yorkton, Saskatchewan served as the first beta broker for EDE.
Through the EDE, brokers are able to make policy change requests for home, tenant and condo with Wawanesa - and do it without human intervention.
Wawanesa had previously made a $2.5-million investment commitment towards The Broker's Workstation project that was to have enabled their brokers across Canada to have the management system installed. Wawanesa has been rolling out IntelliQuote and the EDE components to its brokers on a region-by-region basis
In March, CSSI also got an infusion of $1.25-million from the ENSIS Growth Fund to expand marketing efforts in Canada for its SEMCI solution. ENSIS is a $100 million, performance-focused venture capital fund with 20,000 Manitoban shareholders.
"We have 75 broker offices using our Electronic Data Exchange right now in a live environment," he says. "They are doing full end-to-end processing with Wawanesa, including endorsements."
The bulk of the firm's EDE users are in Saskatchewan and Manitoba, where the Virden-based software company is headquartered. However, in the coming year CSSI is intent on exposing the EDE to more Wawanesa brokers in B.C. where it currently has 10 users.
An auto product had been planned as one of the EDE pieces developed, but the auto reform issues in Alberta delayed programming. Whyte says that software development is continuing and will be completed in the near future.
CSSI went through a 'stress test' period with the EDE, simultaneously introducing enhancements to their broker management system. "You can think a product is going to be successful, but until you get it into a live market and brokers work with it, you are never sure. We've really been happy with its success."
With the EDE now commercialized, CSSI has begun discussions with other insurance companies, but Whyte says the form EDE may take will be dependent on the systems the other companies havein place and the way interactions take place. Interactions may be through a website or by other means.
CSSI believes the business-to-business electronic data exchange between Wawanesa and its brokers represents the beginnings of a broad EDE for the industry. Other companies may not wish to take it as far as Wawanesa, but CSSI says it will work with them to match EDE to their vision. Whyte says the CSSI approach with EDE has been proven and can be the single entry multiple company interface the industry is after. "We are hearing from other companies that are very interested in doing this with us now that the product is pretty much complete, and we're starting to get a sizeable number of brokers on it."
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