Every second counts

Many brokers are moving towards charging fees as they aim to improve professional standards, so understanding costs specific to each client has increased in importance. Where a range of products exists to fulfil most business needs, in this instance there is only one time-management system designed exclusively to meet the needs of insurance brokers.

Timebox is a web-based time recording product designed to meet the challenges of fee transparency and client profitability. The interface is a timesheet through which users can enter time spent in units, usually of quarter-, half- or full-hours. "We recommend individuals collect time on a daily basis," said David Grier, managing director at Alphatec.

Client information can be loaded from software systems to avoid the need for re-keying while users can have access to different accounts on a need-only basis. Overbury-based Kingsbridge Risk Solutions is one broker that has invested in the software. Tony Bird, director, said: "Kingsbridge is able to measure the time spent on each of the different types of work - broking, servicing, marketing, risk management, credit control and so on - performed for each client, both chargeable and not.

"The system provides reports that can form the basis for complete transparency of charges and this enhanced understanding is invaluable as input for fees negotiation and future client agreements."

Functionality

With varying levels of authorisation, managers can review profitability and time-cost by client - drilling down to individual services and activities. For instance, a client breakdown is available to show how profitable each person servicing the account is and if tasks are being correctly allocated among team members. Reports can also be generated at senior management level to show the time-profitability of offices, departments and account managers.

Nathan Mills, chief technology officer at Transactor, said he was impressed by Alphatec's system but underlined potential issues surrounding telesales and volume internet operations that he believed in-house software may better address. He also highlighted the need to avoid the appearance of big brother watching over staff: "The introduction of time management systems can face opposition from staff, who could feel they are being micro-managed or too closely controlled. If undertaken sensibly, though, the systems can provide key management information."

Kate Penrose, director at Salient Solutions - a management consultancy specialising in insurance - also voiced support for the software but highlighted that the priority remained for brokers to know their own business model. "Time management is a crucial element to look at in assessing how efficient and effective you are in managing all your resources," she said. "A lot of people know their own business and clients very well but technology can give you an objective rather than subjective view on where you may find more money." She advised brokers to think before investing to ensure they are making the most of their current systems.

Formed in 1996, Alphatec launched its broker service in early 2007 and now has 832 users across the UK, Europe and Australia.

Grier concluded: "Clients are used to paying lawyers and accountants on a time basis. What brokers need is to have the details and information to hand."

As brokers investigate the fees option more closely - arguably making them more professional - analysing time allocation will make them more comfortable that they are charging the right amount, even if the analysis is done to judge levels of commission income.

Aon's in-house option

Aon utilises a time-recording system called Activity Analysis, a real-time system developed in-house by its operational excellence team that is made bespoke to each business unit’s requirements and can adapt to support business changes. Individuals record time spent on each task and client. An important feature of Activity Analysis is the ability to track activity and costs against client fees, thereby providing information to help price competitively in relation to client needs while enabling users to calculate profitability. It can also identify where process improvements and efficiencies can be achieved both internally and externally with clients and providers. The system has the capability to undertake capacity and resource planning, making it adaptable as business requirements evolve and emerge. Reporting capabilities are incorporated that enable both clients and the business to understand utilisation, client demand, performance management and compliance monitoring.

Kay Moses, operations excellence consultant, Aon