{"id":12721,"date":"2020-10-09T14:46:20","date_gmt":"2020-10-09T18:46:20","guid":{"rendered":"https:\/\/www.resourcepro.com\/we-need-to-talk-about-certificates-its-time-for-a-new-approach\/"},"modified":"2024-07-15T10:14:57","modified_gmt":"2024-07-15T14:14:57","slug":"we-need-to-talk-about-certificates-its-time-for-a-new-approach","status":"publish","type":"post","link":"https:\/\/www.resourcepro.com\/blog\/we-need-to-talk-about-certificates-its-time-for-a-new-approach\/","title":{"rendered":"We Need to Talk About Certificates. It\u2019s Time for a New Approach."},"content":{"rendered":"\n

Brenda is a Sales Support Specialist at ReSource Pro with over 35 years of experience in the insurance industry.<\/em><\/p>\n\n\n\n

Behind-the-Scenes Challenges of Insurance Certificate Requests<\/strong><\/h2>\n\n\n\n

Certificate of insurance requests are a unique blend of high stakes and rote work. They tend to be viewed as little more than a data entry task and, as such, are often assigned to entry-level employees. But dig a little deeper into that growing pile of urgent requests and you will begin to see just how complex certificates really are.<\/p>\n\n\n\n

The Costly Price of Errors<\/strong><\/h2>\n\n\n\n

Keeping experienced talent engaged in certificate management and issuance isn\u2019t easy. As a result, many insurance organizations turn certificate requests into a training ground for entry-level employees.<\/p>\n\n\n\n

However, requests often demand a high level of insurance knowledge in order to successfully review requirements and contracts, and to evaluate whether the coverage is appropriate. Certs on their own cannot extend coverage<\/a>.<\/p>\n\n\n\n

If an employee does not have the appropriate knowledge and experience, they may issue a certificate that misrepresents what is available on the policy. Insurance Journal reports<\/a> that the typical E&O case costs an insurance organization a hefty $40,000. But even if a mistake doesn\u2019t result in an E&O case, you may still face reputational damage, friction within the agency, and even loss of a valued client. Are these risks you are willing to take? <\/p>\n\n\n\n

Account Managers vs. Centralized Unit<\/strong><\/h2>\n\n\n\n

In order to mitigate the concern of unqualified employees issuing certificates, many agencies expect experienced account managers to handle certificates. The problem? Certificate requests can come in at any time throughout the day, diverting an account manager\u2019s attention from other important tasks.<\/p>\n\n\n\n

Research by the American Psychological Association<\/a> shows that multi-tasking can result in as much as 40% loss of productivity. People often minimize the impact of certs as it\u2019s often a two-hour per day issue, but that adds up to 40 hours a month. This loss of productivity impedes account managers\u2019 ability to perform more client facing, revenue generating activities that can grow an agency. Certificates, while vital from a customer service perspective, are a costly interruption.<\/p>\n\n\n\n

Many organizations attempt to resolve this issue by moving certificates to a centralized unit. But if this unit is staffed by entry-level employees, there can be a significant investment in recruiting, hiring, and training, as these positions are notorious for having a high attrition rate. It can also be challenging to triage requests that come in from a variety of avenues, such as calls, faxes, individual email accounts, and others, with some agencies resorting to the use of complex Outlook folder structures, flagging, or color-coding to sort requests.<\/p>\n\n\n\n

Consider Your Current Solution<\/strong><\/h2>\n\n\n\n

If you believe your organization could be handling certificates better, ask yourself these questions:<\/p>\n\n\n\n