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Straight Through Processing

Straight Through Processing . The Independent Challenge Scott Sinclair Executive VP & Chief Operating Officer Transamerica Life Canada. Current Life New Business. Paramedical. Carrier. Advisor and Client. CLIENT SIGNS PAPER APPLICATION

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Straight Through Processing

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  1. Straight Through Processing

  2. The Independent Challenge Scott Sinclair Executive VP & Chief Operating Officer Transamerica Life Canada

  3. Current Life New Business Paramedical Carrier Advisor and Client CLIENT SIGNS PAPER APPLICATION Most advisors spend 70% of their time completing paperwork ADVISOR DELIVERS APPLICATION TO DISTRIBUTORAverage 2 to 5 days to deliver Application to Distributor Distributor

  4. Current Life New Business Paramedical Carrier Advisor and Client ADVISOR SENDS BACK TO DISTRIBUTORDOCUMENTS IN GOOD ORDER DISTRIBUTOR’S MAILROOM RECEIVES/SORTS DISTRIBUTOR KEYS DATA INTO SYSTEM DISTRIBUTOR SCANS OR PHOTOCOPIES DISTRIBUTOR SENDS BACK TO ADVISOR IF NOTIN GOOD ORDER / MISSING DATA – 50-70% of time DISTRIBUTOR ORDERS PARAMEDICALS IF REQUIRED DISTRIBUTOR COURIERS APPLICATION TO CARRIER - Usually 5 to 7 days from time of sale Distributor

  5. Current Life New Business Paramedical Carrier Advisor and Client CARRIER RECEIVES APPLICATION On average 20-30% not in good order CARRIER OPENS AND SORTS MAIL CARRIER RECEIVES PARAMEDICAL RESULTS 10 days on average from sale to appointment to complete CARRIER KEYS DATA INTO UNDERWRITING AND ADMINISTRATION SYSTEMS CARRIER SCANS APPLICATION CARRIER UNDERWRITES RISK CARRIER ISSUES CONTRACT CARRIER COURIERS CONTRACT TO DISTRIBUTOR Distributor

  6. Current Life New Business Paramedical Carrier Advisor and Client DISTRIBUTOR MAILS CONTRACT TO ADVISOR FOR DELIVERY TO CLIENT CARRIER PAYS ADVISOR AND DISTRIBUTOR COMPENSATION Distributor

  7. Current Life New Business Paramedical Carrier Advisor and Client INDUSTRY AVERAGE TURNAROUND = 36 DAYS Distributor

  8. Imagine A World... Paramedical Carrier Advisor and Client ADVISOR COMPLETES ELECTRONIC APPLICATION WITH CLIENT ADVISOR SUBMITS APPLICATION ELECTRONICALLYTO DISTRIBUTOR AND CARRIER – 100% in good order ADVISOR SUBMITS PARAMEDICAL REQUIREMENTS ELECTRONICALLY PARAMEDICAL PROVIDES RESULTS TO CARRIER CARRIER UNDERWRITES RISK CARRIER ISSUES CONTRACT CITS FEEDS BETWEEN CARRIER AND DISTRIBUTOR CITS FEEDS BETWEEN DISTRIBUTOR AND ADVISOR CARRIER PAYS ADVISOR AND DISTRIBUTOR COMPENSATION INDUSTRY ESTIMATED AVERAGE TURNAROUND 24 HOURS – Subject to Paramedical and APS Distributor

  9. Imagine A World... Paramedical Carrier Advisor and Client Building the faster future... Drop Costs... Drive Sales Distributor

  10. What’s Unique for the Independent Channel • Advisor Focus / Engagement http://www.cliedis.ca/summit/CLIEDISSummitAdvisorSurveyResults.pdf • Common Capture and Delivery Platform • Standards – Shared -CITS

  11. What’s Unique for the Independent Channel • Does Not Include Points of Competition • Product • STP – Straight Through Processing • Automated Underwriting • Electronic Statements etc.

  12. Straight Through Processing A Career Sales Force Perspective Norm Leblond Director – Technical Underwriting Sun Life Assurance Company of Canada

  13. Current State • 128,000 Life Insurance Applications • 20-25% Preferred • 28,000 Critical Illness Insurance Applications • E-App Penetration Rate 99% • 40% of Non-medical Cases Accepted Electronically • 15-20% of All New Business Applications • 70-80 Underwriters • 40% of Accepted Cases are Auto Mailed

  14. Looking Back 15 Years • Strictly Life Insurance Sales • No Critical Illness, No Preferred • 120,000 Applications Submitted Annually • E-App Penetration Rate 96% • 50% of Non-medical Cases Accepted Electronically • 35-40% of All New Business Applications • 25-30 Underwriters • Policies Produced, Checked and Mailed Manually

  15. Back to the Future! • Enjoy the Benefits of Straight Through Processing • Less Touches • Decreased Turnaround Time • Increased Speed of Issue • Increased Placement Rate • Quality and Consistency of Underwriting

  16. Opportunities Increase Straight Through Processing with: • Changes to Underwriting Requirements • Underwriting System Enhancements • Include Preferred Criteria • Integrated Tele-underwriting • The Ability to Improve Use of Current Resources • Vendors • Off-Site Underwriters

  17. Non-medical Requirements • 30% of Applications are Available for Straight Through Processing

  18. Add Vitals and Labs • Potential to have 84% of Applications Available for Straight Through Processing

  19. Add Integrated Tele-underwriting • Potential to have 99% of Applications Available for Straight Through Processing

  20. It’s Not Easy! • Important Things to Consider: • Time to Market • Cost/Benefit Analysis • Expertise Required • Large Scale Impact of Errors/Omissions

  21. In Conclusion While it may not be easy, everyone can benefit with straight through processing. For Sun Life’s Career Sales Force….it’s the way of the Past, the Present and the Future!

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