MGAs put tech on the front burner

The working group formed to address the issue of data flow, dubbed the Canadian Insurance Transaction Standardization (CITS) project, includes 11 distributors and nine carriers working with the CLIEDIS Standards Review Committee. To form the group, each of the carriers were asked to identify the top three distributors they dealt with and MGAs were asked to identify their top three carriers. At her presentation, McGeachin encouraged other MGAs to join the initiative.

Interestingly, the working group found that despite the fact carriers for years complained that “you all want different information,” most data needs were remarkably similar at each company.

Over the past year the CITS group acknowledged that, although the technology exists for real time data exchange, both carriers and distributors agreed that batch updates of information was sufficient and easier to attain quickly. Since new business is most frequently administered on newer technology systems that allow for easier programming, the group logically decided to begin by mapping the standards for carrier pending feeds and started by creating a list of information that distributors need and use for administering new business cases. “It turns out that when we polled the group, we had very few areas where we needed to negotiate about data elements,” says McGeachin. “All distributors were looking for the same basic information.”

In November 2005 CITS published the first Transactional Implementation Guide that outlines a standard set of data points and the order they should be mapped so that MGAs and their technology vendors can easily import the feeds. “Cycle times are going to be shorter, you’re going to be able to consolidate data much more effectively for your brokers, servicing pending information and once in-force feeds become available, servicing in-force business becomes so much easier for everybody,” she says. “Your day to day business looks better. It’s much easier to manage.”

The guide is currently being review by carriers who are in the process of developing and beta testing the feeds. Once carriers clear beta testing hurdles, McGeachin says she expects the feeds to be ready and available for MGAs to use in their back office systems within a year. Before this can happen though, she says MGAs will likely need to brush up on their compliance practices and be prepared with up to date privacy guidelines and policies.

Carriers have requested a new compliance subcommittee be convened to address information security and data manipulation concerns. “It’s certainly a manageable issue. I think that concerns that are going to be raised can be fairly easily addressed,” says McGeachin. “Their biggest concern is security of data and security of data can be managed.”

The next CITS initiative will be to map similar standards for in-force business feeds. This time around the group plans to get vendors involved earlier in the process.

Filed by Kate McCaffery, Advisor.ca, kate.mccaffery@advisor.rogers.com