However, the system will not be limited to insurance policy applications and issuance. The operating agreement creates a communications platform that is a natural step in the technological evolution of the insurance industry. The new communication infrastructure will enable both companies and their agency partners to not only share data but also to process real-time insurance transactions. Right now, there are various components of systems in place that are performing diverse insurance functions. Some agents and insurers are performing upload and download of application and policy information, for example.
Many insurers also have proprietary Web sites for their agency communications.
But what the industry has lacked is a seamless and efficient data exchange that can extract customer information from an agency management system based in agency offices and communicate the data directly into insurance company automation, she says. What we are doing is creating a true communications infrastructure, not just a portal. The infrastructure will allow Internet communication applications as well as proprietary communications between agents, insurers and third parties. In May, Applied Systems demonstrated a pilot WARP system by simultaneously processing a range of transactions with three test insurers. WARP uses XML to coordinate insurance customer information for policy rating, underwriting, policy issuance and billing and claims inquiry.