CAIB 4 - Book Practice Questions And
Answers
Aetechnologyeplanewilleaffectealleaspectseofetheebrokerageeandeitserelationshipsewitheitseclien
ts,eprospectseandetheeinsuranceecompanies.
Describeeareasetheebrokerageewillehaveetoeaddresseineitsetechnologyeplanningeprocesse-
eCORRECTeeANSWER-UnderstandingeNeeds
Analyzeetheecurrentebusinessesituation
Projectetheefuture
e
CriteriaetoeEvaluateeTechnology
ReportingeCapabilities
Capacity
Supporte&eTraining
Cost
e
Implementation
ContingencyePlan
Maximization
Coachingeiseaeplannedeprocessethatebringseaboutelastingeperformanceeimprovement.eExpl
ainewhyeyouebelieveethisetoebeetrueeorenote-eCORRECTeeANSWER-oneetoeoneeexchangee-
erelationshipebuilding
motivationaleprocessethateidentifieseemployeeeindividualeneeds
provideseinformation,eunderstandingeanderesourceetoehelpemeeteemployee'seneeds
focuseseoneimprovingeperformance,eincreasedecommitmenteandepositiveeworkingeconditio
ns
shouldeoccurealletheetimee(on-going)
Defineepositioningeandedifferentialeadvantagee-eCORRECTeeANSWER-Positioninge-
erefersetoehowetheebrokerageeiseperceivedebyeclientseinerelationetoecompetingebrokerages.eT
hiseperceptioneiseoftenereferredetoeasetheeimageeofetheebrokerage.
, Differentialeadvantagee-
ethiserefersetoeanyefeature,eservice,eoreproducteofferedebyetheebrokerageewhichedifferentiate
seitefromeotherseandeprovideseaneadvantageebecauseeclientsedeemeiteasebeingeimportantetoe
them.eTherefore,eanyebrokerageethateofferse24-
houreaccesseviaetechnology,eaevarietyeofeserviceseandeproductseoresuperioreclienteservice,e
mayedevelopeaneadvantageeoveretheecompetitionebecauseeclientsewantetheeaddedevalueeth
atetheseedifferenceseprovide.
Describeethreeemajorewayseinewhichetechnologyehasesignificantlyechangedetheeeffectivene
sseofebrokerse-eCORRECTeeANSWER-Enhanceeprofitability
Buildeclienterelationships
Improveeeffectiveness
Differentetypeseoferelationshipseexisteatedifferentelevelseandeaseaeresultethereeareeaevarietyeo
ferelationshipetypes.eIndicateewhicheoneebestedescribeseyourerelationshipewithetheemajoritye
ofeyoureclientseandewhy.e-eCORRECTeeANSWER-Face-to-face;
Thisetypeeoferelationshipeisecharacterizedebyeclienteinteractionewithetheecompanyeoneaeregul
arebasiseaneineaepersonaleenvironment.
Theeclienteactuallyemeetseemployeeseofetheecompany,etheyeseeetalkewitheeacheother.e
Theyemayeoremayenotedevelopeveryecloseefriendly,epersonalerelationshipselargelyebecausee
ofetheenatureeofetheeinteraction.
Discussetwoewayseaebrokerageecaneidentifyeaerelationshipseriskeandetwoewaysetheyecanema
nageethaterisk.e-eCORRECTeeANSWER-Identify;
Trackelapsedepolicies
Reducedecoverage
Neweacquisitionewitheanotherecompany
Manage;
Findesourceeofedissatisfaction
Makeeaecountereoffer
Useeofeabeyance/correspondenceetoetrackeorefollow-up
Explainetheeadvantageseandedisadvantageseofetop-downeandebottom-
upeapproachesetoeplanning.e-eCORRECTeeANSWER-Top-DowneApproach
oeManagementeisefirmlyeinecontrol
oeMayefailebecauseeemployeesedon'tebuyeintoeit
Bottom-UpeApproach
oeEmployeesesetetheeplane-ebuy-in
oeManagementefeelethatetheyeareenoteinecontrol
Answers
Aetechnologyeplanewilleaffectealleaspectseofetheebrokerageeandeitserelationshipsewitheitseclien
ts,eprospectseandetheeinsuranceecompanies.
Describeeareasetheebrokerageewillehaveetoeaddresseineitsetechnologyeplanningeprocesse-
eCORRECTeeANSWER-UnderstandingeNeeds
Analyzeetheecurrentebusinessesituation
Projectetheefuture
e
CriteriaetoeEvaluateeTechnology
ReportingeCapabilities
Capacity
Supporte&eTraining
Cost
e
Implementation
ContingencyePlan
Maximization
Coachingeiseaeplannedeprocessethatebringseaboutelastingeperformanceeimprovement.eExpl
ainewhyeyouebelieveethisetoebeetrueeorenote-eCORRECTeeANSWER-oneetoeoneeexchangee-
erelationshipebuilding
motivationaleprocessethateidentifieseemployeeeindividualeneeds
provideseinformation,eunderstandingeanderesourceetoehelpemeeteemployee'seneeds
focuseseoneimprovingeperformance,eincreasedecommitmenteandepositiveeworkingeconditio
ns
shouldeoccurealletheetimee(on-going)
Defineepositioningeandedifferentialeadvantagee-eCORRECTeeANSWER-Positioninge-
erefersetoehowetheebrokerageeiseperceivedebyeclientseinerelationetoecompetingebrokerages.eT
hiseperceptioneiseoftenereferredetoeasetheeimageeofetheebrokerage.
, Differentialeadvantagee-
ethiserefersetoeanyefeature,eservice,eoreproducteofferedebyetheebrokerageewhichedifferentiate
seitefromeotherseandeprovideseaneadvantageebecauseeclientsedeemeiteasebeingeimportantetoe
them.eTherefore,eanyebrokerageethateofferse24-
houreaccesseviaetechnology,eaevarietyeofeserviceseandeproductseoresuperioreclienteservice,e
mayedevelopeaneadvantageeoveretheecompetitionebecauseeclientsewantetheeaddedevalueeth
atetheseedifferenceseprovide.
Describeethreeemajorewayseinewhichetechnologyehasesignificantlyechangedetheeeffectivene
sseofebrokerse-eCORRECTeeANSWER-Enhanceeprofitability
Buildeclienterelationships
Improveeeffectiveness
Differentetypeseoferelationshipseexisteatedifferentelevelseandeaseaeresultethereeareeaevarietyeo
ferelationshipetypes.eIndicateewhicheoneebestedescribeseyourerelationshipewithetheemajoritye
ofeyoureclientseandewhy.e-eCORRECTeeANSWER-Face-to-face;
Thisetypeeoferelationshipeisecharacterizedebyeclienteinteractionewithetheecompanyeoneaeregul
arebasiseaneineaepersonaleenvironment.
Theeclienteactuallyemeetseemployeeseofetheecompany,etheyeseeetalkewitheeacheother.e
Theyemayeoremayenotedevelopeveryecloseefriendly,epersonalerelationshipselargelyebecausee
ofetheenatureeofetheeinteraction.
Discussetwoewayseaebrokerageecaneidentifyeaerelationshipseriskeandetwoewaysetheyecanema
nageethaterisk.e-eCORRECTeeANSWER-Identify;
Trackelapsedepolicies
Reducedecoverage
Neweacquisitionewitheanotherecompany
Manage;
Findesourceeofedissatisfaction
Makeeaecountereoffer
Useeofeabeyance/correspondenceetoetrackeorefollow-up
Explainetheeadvantageseandedisadvantageseofetop-downeandebottom-
upeapproachesetoeplanning.e-eCORRECTeeANSWER-Top-DowneApproach
oeManagementeisefirmlyeinecontrol
oeMayefailebecauseeemployeesedon'tebuyeintoeit
Bottom-UpeApproach
oeEmployeesesetetheeplane-ebuy-in
oeManagementefeelethatetheyeareenoteinecontrol
