Logging in to online learning

Published Date: April 19, 2004

Businessinsurance.com

Online learning programs can help insurance industry companies save money and increase the efficiency of employee training programs, though some companies have been quicker than others to embrace the concept. The companies making the best use of online education at this point are the "innovators and early adapters," according to a top executive at one firm providing online learning programs.

"There are several dynamics happening at a high level with the innovators," said Larry Duckworth, president and chief executive officer of Learn.net in Atlanta. One of those is "looking for alternatives to instructor-led classroom training."

One factor behind that search for alternatives is a recognition that having producers out of the office at training "is a huge cost that they need to avoid," Mr. Duckworth said. In addition, the travel costs associated with sending employees to attend classroom training can be significant, he noted.

"So there's a huge (company) focus on, `How do we use the Web to do that training, not only at less cost but more effectively?' " Mr. Duckworth said.

Online learning programs also can offer advantages in terms of tracking employees' progress with educational programs, the Learn.net president said. Such programs generally allow companies to see how employees performed in their classes rather than just getting a record of their attendance. Often, continuing-education opportunities provide only the latter, he noted.

According to Mr. Duckworth, many companies embracing online learning are taking the view that, "If we're going to spend that money, let's make sure we get something for it, as opposed to just getting a check mark."

"Also, a whole new area known as competency management is arising," he said, "Competency management is a large area of scores-based training or retraining."

Online training systems can also be used to automatically control which employees receive what training or to manage training related to meeting licensing and other regulatory requirements, he said.

Web-based learning systems also can be used to identify employees who might be having problems with the material and to guide them to additional training or mentoring that might help them, according to Mr. Duckworth.

And, Mr. Duckworth said, the employee training records his company keeps could help protect clients against future liability. "We track and keep that data, so that if there ever is an (errors and omissions or human resources) problem, we can present that data," he said.

Ed Zurek is the president of another online learning firm, Northbrook, Ill.-based NetStudy.com, and its InsuranceStudy.com division. "We've done a two-stage process with a lot of carriers," Mr. Zurek said. The first stage is to conduct an assessment of education needs throughout the firm, he said, and the second is to provide the appropriate programs.

"One of the carriers has used it to weed out some of its not-so-good people," he said. "If you don't pass the test the third time, you're gone."

"We're doing a prescreening test for a large agency in Chicago's northwest suburbs where they want to screen candidates, see what their knowledge of the insurance industry is," Mr. Zurek said. "One of our courses is just a glossary course. It's about 200 pages long, and it's just terms."

Another advantage to online learning is that the student's results are available immediately upon completion of the course, Mr. Zurek said.

"We deliver results instantaneously," he said. "As soon as they finish a course, they know what their grades are."

The advantage of knowing results instantly and the flexibility online learning offers also can be attractive to employees. The American Institute for CPCU and the Insurance Institute of America have been offering a number of classes online and has seen attendance rise.

In 2003, the Institutes had 1,181 registrants for its classes, up from 732 in 2002, said a spokeswoman for the Malvern, Pa.-based Institutes. "That is a 61% increase, so we're definitely seeing some increase in use," she said.

The Institutes also are considering adding some new course offerings to their existing online mix.

"Any time you're thinking about possibly adding programs, you're viewing it as a viable program or a viable alternative for people," the spokeswoman said.

But despite the potential advantages of online learning, not everyone is rushing to take advantage of the approach, noted Dee Macheda, director of education for the Independent Insurance Agents & Brokers of New York.

"It's a little difficult to gauge our membership," Ms. Macheda said. "We get requests for online courses, and it gets a little more prevalent as it gets closer to their license renewal dates."

Among other things, many employees are wary of the online exams, she said.

"They're a little bit more reluctant to let everything fall back on the fact that they have to pass that exam," Ms. Macheda said. "As people get more comfortable with taking online exams, it might increase."

"However, whenever we do surveys, the majority of people do like the in-person kind of education," she said. Many prefer being able to ask the instructor questions face to face and having the opportunity to gather with peers.

"Also, I think some of it is just wanting to get out of the office," Ms. Macheda said. "And, with the material online, there's a question of how easy would it be to print it out for your own use."

Another significant issue has been winning regulatory approval for meeting continuing education compliance requirements through online learning programs.

"It's just been within the past year or so that the New York insurance department would allow you to complete all of your continuing education online," Ms. Macheda said. "It used to be just half."

"The biggest issue is getting the approval of the regulators to say, `This is real content. We'll give you some credit for it,"' said NetStudy.com's Mr. Zurek. "We've done that in the insurance industry."

Given time, online learning probably will become the norm in the insurance industry, Ms. Macheda speculated. "Like anything else, I think our children will be very used to it, and they won't think about it," she said. "They'll just do it."