Special Issue on CIM-Data’s Roll-out of its integration to Marshall & Swift / Boeckh’s Residential Component Technology (RCT) Residential Valuator

December 2002

 

RCT Integration in Progress!
Compu-Quote has shipped us their first complete integration version of the RCT product and we are now working full bore on providing CIM-Data integration to RCT. It will be delivered in two stages:

 

A) RCT Pre-Release
By about December 17th (if not earlier), we will have an "RCT Pre-Release" available on our web-site for all Release 3 and Release 4 customers. It is important that all Release 3 customers start working with this install as soon as possible. Please go to www.cim-data.com, Product Info then under Software: CIM-Data's Marshall/Swift RCT Integration to download.

 

The first version of CIM-Data's RCT will be in GUI using VCIM. Once this Pre-Release version is installed, you will be able to run the RCT mock-up to become familiar with what CIM-Data's RCT looks like. You will also have about two weeks to complete the conversions in order to use the Operational Release.

 

B) RCT Operational Release
Once we have completed integration and successfully tested in the field, we will post the final update to our website. The status of the RCT Operational Release will first be posted to the website on December 17th and then updated whenever changes occur. Please check the website for status. Please do not call us for personal updates.

We are the first ones using Compu-Quote's RCT integration package. If all goes well, it may be possible to download it and install by January 2nd, 2003. This is not a commitment! If issues arise beyond our control, it could take considerably longer to complete the package. If any unresolved problems persist by that date, we will publish the details on the website. If your Pre-Release has been completed successfully, the Operational Release can be downloaded, installed, and turned on in as little as 15 minutes, without support assistance.

 

What the RCT Pre-Release will contain:
1. A new Main Menu that will allow any user to start the RCT VCIM Mock-up on their workstation. It can be used immediately after loading the Pre-Release. This mock-up will confirm that each workstation is set to at least 800x600 screen resolution (needed for VCIM).

 

2. Release 4 PrntSetup. This is the heart of the new printing system used in Release 4 and is required to print RCT Evaluations. Your System Manager should complete the conversion before the end of December. It will not affect Release 3 printing. It can take an average of one to four hours to learn PrntSetup, complete the conversions, and test. A print test feature will be included in VCIM.

 

3. Release 4 zFiler. This is a faster, more complete database system required for VCIM to connect to the database in the RCT Operational Release. The change over to zFiler takes a few minutes to set up and a few minutes to a half-hour (depending upon the size of your database and speed of your server) to rebuild the index. For safety, it is recommended this procedure be done after a backup.

 

RCT for CIMMux Offices
Since VCIM will not operate over CIMMux in branch offices, we will make RCT available in Runbpi but in Release 4 only. Remaining CIMMux customers on Release 3 must upgrade to Release 4 in order to use RCT in their branch offices. Please contact CIM-Data support to schedule upgrades.

Support Help for the RCT Pre-Release
CIM-Data Support help for the RCT Pre-Release will be minimal. There are too many brokers to help in too short a time frame. The Pre-Release will come with detailed instructions, procedure sheets, and help files. Please take the time to read these on your own. These instructions are complete enough for most brokerages to finish the full install without any assistance. However, if you get stuck, we do highly recommend that you contact CIM-Data Support in case you need help learning the concepts. Please tell reception that you are calling about the RCT Pre-install. We will allocate no more than one person on these calls at any one time. Answers and help will be returned on a first in, first back basis. We will try to keep all calls to less than 15 minutes so that everyone will have a chance for some assistance before the end of December. We have hired an additional support person to help us through the RCT distribution and Release 4 installs afterwards.

About CIM-Data's RCT Integration
The Compu-Quote version of RCT is a basic GUI interface that is easy to use. We believe the VCIM format of RCT is faster and easier to use and is more intuitive. It will also eventually be integrated into the VCIM Policy Management System in Release 4. The data fields used between the Compu-Quote version and the CIM-Data version are virtually identical.

What about Learning RCT?
RCT uses different evaluation concepts than the Boeckh does. The Boeckh was originally developed by the Insurance Bureau of Canada and has been the standard for many years. Brokers all know it well. RCT is new and will take some time to become familiar to everyone. It looks like it will take less time to complete than the Boeckh.

Compu-Quote and Marshall & Swift are aware that brokers may need training. MS/B is currently looking at providing nation-wide training seminars. We have also posted the Marshall & Swift RCT FAQ on our website at www.cim-data.com, Product Info then under Software: CIM-Data's Marshall & Swift RCT Integration.
(see side bar).

What about Company Acceptance?
Marshall Swift has terminated support for the Boeckh Calculator. As of January 1st, many companies have stated that they will no longer support Boeckh Evaluations unless Marshall & Swift extends support into 2003. MS/B has said this cannot happen. Some brokers believe it is likely that many companies might still continue to accept Boeckh Evaluations into early 2003 while the transition completes rather than turn away new business.

Compu-Quote Distributions
All Compu-Quote customers already have the option of rating with the Boeckh or the first version of RCT. A revised version with an updated calculation engine has been completed. This updated version is the one already supplied to CIM-Data. This same version will also be released to Compu-Quote customers during the third week of January.

What about Boeckh Data?
The information maintained by RCT is different than that maintained by Boeckh. Once the Operational Install is completed, we will focus on a conversion routine to convert as much existing Boeckh Data to RCT as possible. The status of this routine will be posted on our website commencing December 17th. Both the Existing Boeckh System and the new RCT System will be available. You will retain full access to the CIM-Data Boeckh system and data, even after the conversion.

The Price Increase
We have finalized pricing levels for licensing the CIM-Data version of the RCT Product. These prices were worked out with Marshall & Swift and Compu-Quote and are competitive. Brokerages with one user will have an increase of $8.00 per month. Brokers with two to twenty users will have an $18.00 per month increase. Brokers with over twenty users will have a $22.00 per month increase. This is blanket pricing based on all CIM-Data customers using RCT. The price increase will take effect as of January 1st, 2003.

Rumours: R.S. Means and I.B.A.O.
There are serious detractors from the RCT product out there. According to an IBAO source, IBAO has brought in another American Evaluation Product called "R.S. Means". IBAO requested 47 changes to the R.S. Means product to 'Canadian-ize' it. The new product will apparently be available to all brokers and companies on January 15th for $600 per year. There is to be a meeting shortly in which about a dozen major companies may decide to accept IBAO's version of R.S.Means. No contracts or final commitments have been made so far by anyone involved.

The two major reasons cited for the Ontario brokers’ initiative: cost and accuracy. In comparisons done by the IBAO on several dozen evaluations, RCT apparently rates homes under $300,000 significantly higher than the Boeckh and R.S. Means, particularly outside of Ontario. Marshall Swift maintains that the RCT calculator was developed in response to the real concerns of insurance companies and companies' overall actual claims experience across Canada.

In defence of RCT, any discrepancies in valuations for insurance purposes would eventually wash out once actuaries and marketing departments realized they could restructure premium rates for competitive advantage. We have lots of competition in the industry. It is unlikely premiums will permanently increase by 15% to 35% just because of the evaluation product.

However, once competing evaluation systems become available, it becomes more difficult for companies to equalize their premium rates, unless they add in evaluation method specific calculations. It also makes it difficult for brokers who have to defend a higher valuation to a price conscious consumer or a lower valuation to a consumer concerned about proper coverage. Brokers should be asking their Broker Associations for clarifications on the ramifications.

Another major factor is the CSIO Portal. The Portal requires an imbedded evaluation calculator. It is more likely that the companies that want to see the Portal succeed are looking for an evaluation product they can control. This perhaps would be more available under an IBAO controlled product.

In the absence of factual, reliable information to the contrary, RCT remains the product of choice for us to integrate with. This may change once IBAO and these companies involved issue some sort of formal notification. Again, please do not call for personal updates. We will issue statements again once we have facts available.


 

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