The Technology Award - Alphatec - Timebox

Broker commissions have come under scrutiny this year like never before. The way brokers earn them, ...

Broker commissions have come under scrutiny this year like never before. The way brokers earn them, who they earn them from and their justifications of the added cost have become a bone of contention between the market and the Financial Services Authority. But worse, there is a fear that this seeming distrust shown by the regulator may be picked up by clients.

Brokers have sworn blind that in comparison to the level of work they do for their clients, their remuneration can be rather small. What would be ideal would be a clear and simple method of showing clients just what their broker does for their commission - and it appears Alphatec has done just that.

In this category, the judges were looking for an application that enhanced the quality, efficiency and cost-effectiveness of broker business administration and, in this respect, Alphatec was the clear winner with its Timebox application.

Solution needed

Alphatec was well aware of the issues of income transparency but wanted to offer an application that would identify a business' true internal costs and allow them to identify efficiencies and inefficiencies in the practice and placement of work.

There was a clear need within the broker market for such a solution, and Alphatec responded with Timebox, a client profitability system designed specifically for the insurance sector. It realised early on that its clients had no desire to be burdened with added IT systems and would rather use a hosted one.

Timebox was developed as a rich internet application that brokers could subscribe to and configure to their existing business reporting structure. Every office is able to access and use the system - no matter how remote - and all reporting is instant and up-to-date.

Although the main driver behind the application was understanding the profitability of fee-based income, Timebox also allows users to quantify the profitability of their commission income; maximise the margin on both commission and fee-based work; understand the true operational costs of servicing every client; and, perhaps most importantly, it helps clients appreciate the scope and extent of the work their broker is providing.

This last point has helped a number of users to handle renegotiation of fees during a policy by sharing with a client the profile of the work that is being undertaken for them. This was not possible before. One particular broker said that Timebox had put them in a much stronger position when it came to negotiation, as their pricing was transparent and accurately reflected what the costs per client are.

Another large broker was able to use Timebox to successfully increase fee income from one of its major clients. The broker used the information to show its client how the work being undertaken on their behalf was more than originally anticipated when the fees had first been agreed.

Being able to provide clients with such clear information also improves trust, thereby helping with client retention. Alphatec can boast 100% client retention, which it believes is a result of its commitment to exceptional service combined with its approach to systems delivery and development.

The judges felt that Alphatec had successfully responded to a current and pressing industry problem. In addition, not only had Alphatec addressed that problem with Timebox, but it had given brokers the ability to increase their earnings and build the level of trust between themselves and their clients. As such, Alphatec and Timebox were the clear winners in this category.

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Sponsored by: APC Underwriting.