Macquarie and EBIX with new back office software
The trial period of Macquarie Premium Payments (MPP) has been judged a success, following reports by pilot sites of improved office efficiency, faster payment of client premiums, and cost savings.
MPP was developed with EBIX Australia and handles receipting and payment functions, as well as bank reconciliation. It is available to Macquarie Bank customers who use Ebix software (CBS, eGlobal and WinBEAT). The innovative software was trialled by select insurance brokers in Perth, Adelaide and Melbourne over the previous six to nine months.
According to Macquarie Insurance Broking Services, the positive results experienced by the pilot sites suggested MPP would revolutionise the way brokers manage their premium payment collection and reconciliation.
Pilot sites reported significant benefits after introducing MPP including improved office efficiency through the elimination of time-consuming manual chores and automated reconciliation, improved client service levels, and significant cost savings.
According to EBIX Australia, in an environment of softening premiums, it believes many insurance brokers will welcome any innovation that can increase productivity and help them maintain their bottom line.
According to Donnelly Insurance Brokers, whom trialled MPP, MPP has enabled it to restructure its back office to deliver significant administrative efficiencies to the business and provide a greater range of payment options to clients.
Before MPP, it had a dedicated payment administration team handling thousands of payments by phone and mail. The introduction of MPP outsources the collection of premium payments, has given Donnelly an opportunity to restructure its back office.
The phones are no longer tied up with clients wanting to pay by credit card so Donnelly can service other enquiries effectively. Donnelly re-trained the payment administration team to develop or enhance their broking skills. This adds more capacity to its service team.
Clients can now enjoy the same premium payment options that they have for other major service suppliers - something they had been demanding for several years. The team in their office now has greater quality of work life and MPP, along with other technology improvements and MPP has assisted Donnelly to be better productive.
Another pilot site was West Australian-based LTM Risk Partners.
According to LTM Risk Partners, the software had enabled its business to deliver higher client service levels by providing a broader range of payment options.
From LTM’s perspective, it has given its clients a payment options rather than just cheque and credit card so they can make their payments whenever and wherever it suits them.
According to Middleditch Insurance Brokers, the business had enjoyed cost savings since introducing the technology. It had noticed a considerable reduction in merchant fees as there is no need to carry the cost of credit-card fees. It estimates that its merchant fees have fallen by more than 50% since it began using MPP nine months ago.
MPP is currently being rolled out to the broader market.
4-Jun-2007