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ALLIANT INSURANCE SERVICES, INC.

TABLE OF CONTENTS

EXECUTIVE SUMMARY 3

PROBLEM/ NECESSITY 4

PROJECTS DESCRIPTION/ PROPOSED SOLUTION 5-6

COST ANALYSIS 7-8

ASSESSMENT STRATEGY 9

CONCLUSION 10

APPENDIX 11-12

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ALLIANT INSURANCE SERVICES, INC.

EXECUTIVE SUMMARY
Company Overview
Alliant Insurance Services, Inc Aviation Brokerage Division is committed to providing innovative
insurance solutions in order to save its clients as much money as possible while offering
optimal coverage. Their clients, both corporations and individuals, bring a diverse set of assets
and the Aviation Brokerage Division offers coverage for Aircraft Hull & Liability, Property, Auto,
and Workers Comp.

Objective
This proposal works to create a more enjoyable user experience through streamlining product
presentation on a mobile application, making policies more accessible, while cutting costs and
decreasing Alliants impact on the environment.

Goals
Decrease environmental impact through material reduction
Provide organizational cost savings through material reduction
Increase customer retention through increased customer satisfaction

Project Outline
I propose that Alliant invests in creating a mobile application that would allow clients to view
policies on their mobile devices, request certificates (proof of insurance), and contact their
producer. By creating this platform Alliants Aviation Brokerage Division would eliminate the
need to send out physical policy binders and provide a more modern and dynamic tool for their
customers.

The investment would cost between $40,000 and $50,000, to contract a application
development agency. This would cover all costs of development and cost variance is
dependent on the features needed on the application. No longer producing binders would
provide an estimated annual savings of $8,455.00 in labor, materials, and shipping
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ALLIANT INSURANCE SERVICES, INC.

PROBLEM/ NECESSITY

Competitive Market
The Aviation Insurance brokerage market is a highly competitive market where the majority of
decisions are made on the ability to save the client (insured) money. In order to retain clients
Alliant must insure that it is providing the insured competitive savings, superior customer
service, and the most efficiently tailored insurance policies to cover the insured individual
business or personal needs.

Outdated Product
Alliants Aviation Brokerage division currently provides each client with a physical policy binder
that features tabbed sections containing a policy, certificates of insurance, and contact
information. These binders require a significant amount of physical materials and is an industry
practice that has not been altered in decades.

Technological advancements provide an opportunity to stand out from competition while

providing longterm cost savings and decreasing the companies environmental footprint. An
application exist for almost all major services and it will not be long before it will become
prevalent throughout the insurance community.
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ALLIANT INSURANCE SERVICES, INC.

PROJECT DESCRIPTION/ PROPOSED SOLUTION

Product: Mobile Application
Creating a mobile application would allow clients to view policies on the go, easily find
certificates, and decrease the need to hold onto physical copies of their insurance policies. This
solution will impact the organizations triple bottom line while furthering organizational
objectives.

People:
The implementation of this application will impact the client, our organization and our
competition.

The Client will experience the most abrupt impact but the most beneficial. Allowing customers
to access their portfolio on the application will not only increase the perceived value of our
service but show that Alliant is committed to staying on the forefront of the market. Alliant could
also allow customers to still receive the traditional binder if they are not comfortable with the
application as a solution.

Our Organization will need to implement training for employees to understand how to use the
mobile application and update it. This training should only take a few hours but full grasp of the
application could take up to a month. However, over time employee satisfaction should be
increased as this is seen as a positive change as the task of compiling portfolios is generally
disliked. Increasing employee satisfaction could lead to a reduction in employee turnover and
further savings in future training costs.

Our Competition may see the potential of this application and will most likely attempt to keep
up and develop their own application. Although this may result in an only temporary advantage,
the perception of Alliant being at the forefront of market trends could benefit the organization.

Planet:
The elimination of physical policy binders allows for the annual reduction
of slightly over 97,000 pages of paper a year. Using the estimation of
15,000 pages of paper per tree (sierraclub.org) the estimation of 6.46
trees saved annually was calculated, as shown in model a.
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ALLIANT INSURANCE SERVICES, INC.

Profits:
This solution will provide an estimated savings of $8,455.00 annually this includes materials,
labor and shipping. However this estimation does not factor in other less quantifiable benefits.
Such as retention of customers that may otherwise have been lost or the acquisition of new
customers. As mentioned in the people section above a reduction in employee turnover could
also provide further increases to profits.

Why This Solution is Eective:

This solution will stick within the organization because it provides tangible cost benefits,
positively effects all people involved, and is sustainable. Although this will require some
adjustment and training the progression into more advanced tools and technology should be
seen as an improvement and create a more modern product.
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COST ANALYSIS

Binder Costs
No longer having to produce policy binders will provide a savings to the company. The following
chart shows how we arrived at the approximation. Using an approximation of 2.6 binders per
client, the average number of individual policies, times the number of clients (176) we were able
to arrive at 457 binders a year.

Description Quantity Unit Price Cost

Binder with Custom Branding 457 $ 4.00 $ 1,828

Paper 457 $ 3.00 $ 1,371

Tabs (3 per binder) 457 $ 0.50 $ 229

Labor Cost (0.5 hours x $16 an hour) 457 $ 8.00 $ 3,656

Shipping Cost 457 $ 3.00 $ 1,371

Total $ 8,455

Return on investment
An initial outlay of between 40,000 and 50,000 dollars will be paid off by the end of 2023 by the
direct savings generated by the project.

Investment Return

60000

45000

30000

15000

0
2018 2019 2020 2021 2022 2023
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Indirect Costs
The project will also feature several indirect costs and benefits that are more difficult to
estimate. Due to the relatively small size of the Aviation Brokerage Division these costs could
vary significantly because of this variation I have left them out of the estimates. Some of the
indirect costs could entail; training, clients lost because of transition, and new software needed.

Indirect Benefits
There are also inherent indirect benefits that have also been left out of the approximation. For
similar reasons as the indirect costs they have been left out of the calculation but could include;
additional clients acquired, and savings from decreases in employee turnover.
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ASSESSMENT STRATEGY

By implementing this proposal into Alliants business, it will generate a new found excitement
over to product that we are providing clients. Alliant can expect to retain clients due to this
more dynamic product as well as use the application in pitches to prospective clients in order
to show the unique and tailored product they are being offered.

The mobile app is the most effective addition to company procedure given the product being
offered. Gone are the days of shipping 200 plus page documents across the country. Although
security was a major reason for this practice it is still possible to ensure that the policies are
only uploaded once coverage is bound and no additional content would be provided than what
is covered in the traditional binder.

Alliant has worked to become a leader in the insurance industry and creating this application
serves this movement. In terms of tangible results, we would measure the success of this
proposal based on the following measurable metrics:

decrease in physical policy binders produced annually

increase in positive customer reviews on annual satisfaction survey

decrease in annual employee turnover

decrease in spending on office materials

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CONCLUSION

I am confident that this recommendation will provide an increased customer satisfaction rating
and in turn continue to grow the Aviation Brokerage Division of Alliant. Providing customers with
this service will be seen as an investment for them and show Alliants commitment to them.

Additionally I believe that it is imperative that Alliant takes steps to minimize its impact on the
environment. Creating a proposal that both proactively addresses profits and the planet is a
rare occurrence in a business already focused on reducing margins and saving money for itself
and the client.

I am assured that this proposal will increase business for Alliant while serving the environment
and the client to the best of our ability.
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APPENDIX (A): MEMO

To: Alliant Aviation Brokerage Division

From: John Throne

Date: October 26, 2017

Subject: Phone Application Integration


The implementation of our new client phone application is now upon us. This application will
work to streamline the presentation of policies and certificates to insured. The application has
been designed by a contracted application development agency and has been tailored to our
organizational needs.

The application features three main features:
1. a digital copy of the clients current policy, including amendments
2. all active certificates issued to the insured
3. contact information for producer of said client

Over the next two weeks each of you will be given training regarding how to update and utilize
each tool on the application. I recommend each of you take time to review our updated
handbook featuring new instructions regarding security measures in place with the application.

I know this is a transition from our traditional presentation but should be met with excitement
as we move to modernize our product. The application should also work to minimize the
amount of time spent delivering the product to insured increasing overall organizational
performance.

An email detailing how to download and sign into the application will be sent to all clients at
the end of the two-week training period. Please work to ensure clients over the coming months
of the benefits of this application and assist them with any questions.

If you have any concerns or question feel free to reach out to me in person or email me at
jthrone@alliant.com






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APPENDIX (B):

WORKS CITED

Research:

http://www.sierraclub.org/sierra/2014-4-july-august/green-life/how-much-paper-does-one-
tree-produce

http://howmuchtomakeanapp.com/estimates/results

http://www.alliant.com/Pages/Default.aspx

https://www.codementor.io/blog/how-much-does-it-cost-to-make-an-app-in-2017-1nqj6ehste

Images:

http://www.mprisk.org/UserFiles/Servers/Server_84508/Image/Logos/Alliant%20Logo.jpg

http://maxpixel.freegreatpicture.com/Helicopter-Rain-Storm-Clouds-Roof-Top-Of-Tv-
Station-2751068

https://upload.wikimedia.org/wikipedia/commons/3/34/Queensland_Nickel_Pty_Ltd_%28VP-
CFP%29_Cessna_750_Citation_X_taxiing_at_Wagga_Wagga_Airport_1.jpg