Better hope that system is secure! Can you imagine what will happen when they find out that someone has intruded into the system and does a dump of the databases? All of your applications, correspondence, pricing, etc… will be available for all to see.
From what I hear, security is one of the greatest strengths of this product, and of LexisNexis in general.
From their website:
“We have multi-layered systems for IT, IS and physical security. We use industry-standard access control software and methods that include vulnerability analysis, rigorous intrusion detection systems and regular penetration testing. Our information and system security professionals continuously refine these processes as threats evolve.
LexisNexis serves many high-level U.S. government agencies and other customers that have extremely stringent data security requirements and share our concern for data protection and individual privacy. LexisNexis continues to set the standard for serving these customers.”
Google, Sony, Financial Centers, and Governments have all been victims of cyber attacks, so I’m sure the right group could take this system down in no time….
This is interesting. Just like the stock market (E-Trade, Sharebuilder, etc.), the second an “exchange” is available margins will be depleted, consumers will soon enough have direct access to carriers (which insurance carriers would love to increase profits by cutting commissions), brokers will need no knowledge of products (since this does it for them), underwriters and middle management will no longer be needed (thus no relationships between brokers and carriers) with computer underwriting being done electronically…. Obviously there are major technology issues in the current insurance cycle, but an exchange will definitively cut out the independent agent at some point, turn insurance carriers into a commodity, and breed a new generation of insurance brokers who know nothing about product…
What happened when online trading exchanges were created:
– Margins Reduced
– Brokers seen as a Commodity, or eliminated
– Consumer goes direct with no broker
– Relationship’s removed from the transactions
Well, it looks like LexisNexis is attempted to do the same thing via the Insurance Exchange – hopefully agency owners will be smart enough to realize the outcome.
Carrier + Insurance Exchange = Reduced Commissions and Direct Sales
I would like to speak to you for an article I’m writing as a follow up to this story. If you have an interest, please email me at: awells@insurancejournal.com or call 800-897-9965 ext 152. Thank you.
The fact that RSA, the largest security company in the world, just got hacked and their “secure” key fobs with rotating 6 digit codes were compromised. The same system used by banks, massive defense contractors, etc… means that their system is not secure by any means.
The fact that large brokerages are running accounts through the system creates a pretty large bullseye for someone who wants access to that information.
You guys are funny and are obviously frightened agents who fear change.
The Exchange is sponsored by the CIAB – you seriously think they would sponsor a project that would decrease their members’ revenues??
The Exchange is a secure way to transact business and to control the process if you are marketing the risk to multiple carriers, assuming you are not too lazy to do that.
Carriers will be more efficient and therefore will have better margins to increase commissions, not decrease them. You will only be replaced if your client thinks you are no good – plain and simple. Don’t become this century’s Luddites!!!!!
The exchange will actually make brokers lazy, not the other way around. As far as cutting margins, the service fee to use the exchange alone will cutting revenues. If there was a web portal that an infinite number of carriers could all participate in screening risks, don’t you think that at some point the carriers could attempt to do the same thing but going direct to the consumer? The exchange allows a user to input the Accord directly via by passing the agency management system – so the infrastructure would be set to have the consumer input their information directly as well….
There seems to be much debate about security and eliminating the broker. Personally, I’ll put my trust in a company that builds their business and reputation on data and security of that data – especially in comparison to unsecured email. Morever, the benefit of entering data once and, with a single button-click, sending it to multiple markets is a dream come true. I would trade that for unsecure email anyday.
And for those of you that think this Exchange will replace the broker – you don’t understand the larger commercial P&C market. This market does not exist without brokers and agents. The last thing my clients want to do is “self service” their own risks.
It’s about time we have something like the Exchange.
Better hope that system is secure! Can you imagine what will happen when they find out that someone has intruded into the system and does a dump of the databases? All of your applications, correspondence, pricing, etc… will be available for all to see.
No thanks.
and like most companies that get hacked, they probably won’t tell you!
From what I hear, security is one of the greatest strengths of this product, and of LexisNexis in general.
From their website:
“We have multi-layered systems for IT, IS and physical security. We use industry-standard access control software and methods that include vulnerability analysis, rigorous intrusion detection systems and regular penetration testing. Our information and system security professionals continuously refine these processes as threats evolve.
LexisNexis serves many high-level U.S. government agencies and other customers that have extremely stringent data security requirements and share our concern for data protection and individual privacy. LexisNexis continues to set the standard for serving these customers.”
Google, Sony, Financial Centers, and Governments have all been victims of cyber attacks, so I’m sure the right group could take this system down in no time….
This is interesting. Just like the stock market (E-Trade, Sharebuilder, etc.), the second an “exchange” is available margins will be depleted, consumers will soon enough have direct access to carriers (which insurance carriers would love to increase profits by cutting commissions), brokers will need no knowledge of products (since this does it for them), underwriters and middle management will no longer be needed (thus no relationships between brokers and carriers) with computer underwriting being done electronically…. Obviously there are major technology issues in the current insurance cycle, but an exchange will definitively cut out the independent agent at some point, turn insurance carriers into a commodity, and breed a new generation of insurance brokers who know nothing about product…
What happened when online trading exchanges were created:
– Margins Reduced
– Brokers seen as a Commodity, or eliminated
– Consumer goes direct with no broker
– Relationship’s removed from the transactions
Well, it looks like LexisNexis is attempted to do the same thing via the Insurance Exchange – hopefully agency owners will be smart enough to realize the outcome.
Carrier + Insurance Exchange = Reduced Commissions and Direct Sales
I would like to speak to you for an article I’m writing as a follow up to this story. If you have an interest, please email me at: awells@insurancejournal.com or call 800-897-9965 ext 152. Thank you.
They can tout their security all the want.
The fact that RSA, the largest security company in the world, just got hacked and their “secure” key fobs with rotating 6 digit codes were compromised. The same system used by banks, massive defense contractors, etc… means that their system is not secure by any means.
The fact that large brokerages are running accounts through the system creates a pretty large bullseye for someone who wants access to that information.
Keep on using unsecured email and hope you send it to the right person then. Watch out for your E&O non-renewal!!!
You guys are funny and are obviously frightened agents who fear change.
The Exchange is sponsored by the CIAB – you seriously think they would sponsor a project that would decrease their members’ revenues??
The Exchange is a secure way to transact business and to control the process if you are marketing the risk to multiple carriers, assuming you are not too lazy to do that.
Carriers will be more efficient and therefore will have better margins to increase commissions, not decrease them. You will only be replaced if your client thinks you are no good – plain and simple. Don’t become this century’s Luddites!!!!!
The exchange will actually make brokers lazy, not the other way around. As far as cutting margins, the service fee to use the exchange alone will cutting revenues. If there was a web portal that an infinite number of carriers could all participate in screening risks, don’t you think that at some point the carriers could attempt to do the same thing but going direct to the consumer? The exchange allows a user to input the Accord directly via by passing the agency management system – so the infrastructure would be set to have the consumer input their information directly as well….
There seems to be much debate about security and eliminating the broker. Personally, I’ll put my trust in a company that builds their business and reputation on data and security of that data – especially in comparison to unsecured email. Morever, the benefit of entering data once and, with a single button-click, sending it to multiple markets is a dream come true. I would trade that for unsecure email anyday.
And for those of you that think this Exchange will replace the broker – you don’t understand the larger commercial P&C market. This market does not exist without brokers and agents. The last thing my clients want to do is “self service” their own risks.
It’s about time we have something like the Exchange.
Would you have an interest in commenting for a follow up article? Please contact me at awells@insurancejournal.com or at 800-897-9965 ext 152