CAIB 4 Chapter 8 Latest Version with Complete Solutions

CAIB 4 Chapter 8 Latest Version with Complete Solutions Technology development has had a major impact on the insurance industry. It has completely transformed the way information is recorded and transmitted between the parties involved in insurance transactions. Identify five functions that the effective utilization of technology will allow brokers to realize. 1. Improve client service levels 2. Store information safely and convenietly 3. Reduce operating costs 4. Handle large volumnes of work 5. Lesson the likelyhood of human error Brokerages have traditionaly used technology for operational reasons. Identify three other areas where brokers have found that technology can be beneficial. 1. Enhance profitability 2. Build client relationships 3. Improve effectiveness Identify, using example, how technology can enhance profitability. An advantage of technology is a reduction in labour Costa as a percentage of total revenue. This may be the result of reduction in the number of employees required to maintain production, or by improving the ability of existing brokers to generate revenue. Identify how technologies can significantly improve the marketing effectiveness of a brokerage. By creating a faster response to the client. Modern database technology enable brokerages to identify specifically who is buying insurance from them and who their most effective brokers are. Identify three ways modern database technology can assist a brokerage in it's marketing efforts. 1. It enables brokers to target the most appropriate market segments and to create relationships with clients. 2. Enables them to enhance the relationships with existing clients by providing them with the information to predict future insurance needs. 3. Marketing efforts can be very focused and refined, resulting in a higher return on investment of both time and marketing dollars. Brokerage office procedures are affected in several ways by technology, and technology needs to work for the brokerage and not the other way around. Identify three ways or areas where technology can improve effectiveness in a brokerage. 1. Reduces administrative tasks, and frees producers to do what they do best: sell insurance and service clients 2. Technology helps standardize office procedures such as abeyance processes and file documentation. 3. Follow-up activities are better coordinated and the potential for errors and omissions will be reduced. Brokerages must make their technology