New Technology in Operations

1. New Technology in Operations Session 39: February 28, 2006Session Producer: Gray Miller, Vice President Geriatric Care Services Long Term Care Group, Inc.

2. Agenda • Speaker introductions • Marketplace trends • End consumer topics • Customer Service on the Internet • Cross product billing and collection • On Line Apps • Internet Illustrations • E “Intent to Buy” • Carrier/Home office topics • E Underwriting • Data management

3. PANEL • Pete Petersen, Director – DI/LTC, Northwestern Mutual Life Insurance Company • Robert Bocompani, Director – Business Technology, Met Life • Bruce Baude, CEO, Long Term Care Group , Inc.

4. Younger buyer Distribution shifting Fewer kitchen table sales Workplace offerings on the rise Buyer more internet savvy Requirement on “ease of doing business” Trends in the LTC Marketplace

5. IVR e-signature Internet quoting On line quote comparisons On line agent servicing Technology Offerings are Broad

6. Pete PetersenDirector, DI/LTCINorthwestern Mutual

7. Customer Service on the Internet • Business Driver • Easy access to info 24x7 for the customer • Routine service off-loaded from Agent • CSI at Northwestern Mutual • View policy info (values, loans, billing info) • Agent contact info & website link • Automated and immediate enrollment

8. Customer Service on the Internet (cont’d) • Designed as a complement to the agent’s service to his/her client • Fits our corporate strategy • How does this compare to what we understand other companies are doing?

9. Billing and Collection across products (“Insurance Service Account”) • Business Driver • Consolidated billing is convenient for customer • Agent’s sales process enabled by “money management” services • Rich functionality available under the ISA umbrella of services

10. Billing and Collection across products (“Insurance Service Account”) (cont’d) • Integration with other administrative functions beyond pure billing and collection. • Future of money management at Northwestern Mutual • Strategic point of differentiation for our company (and our agents)

11. Agent customer data management (“The Network Connection”) • Business Driver • Easy for agent to manage existing clients and cross-sell to them • Built upon time-tested prospecting, needs analysis, and sales processes of Northwestern agents.

12. Agent customer data management (“The Network Connection”) (cont’d) • Ties together all field systems that provide client information or support an agent’s client interaction. • In progress system that still has some challenges to overcome… • Matches our value proposition in the markets where we compete

13. Rob Bocompani Director, Business Technology L060164UO(exp0206)MLIC-LD

14. New Technologies in Operations • Utilizing eSignature for LTC • The Future of eSignature • Overview of MetLife’s Illustration Systems • Pros and Cons of Desktop vs. Online • The Future of Illustration Systems

15. Utilizing eSignature for LTC • Employer Group Channel • eSignature in group marketplace • Drive to online channel • High percentage enroll online (guaranteed issue) • eSignature Pilot • Full underwritten apps online with eSignature • Real-time authentication • 100% electronic • Drive to online channel • Back Office Transformation at MetLife • Shift from paper to electronic • Streamline back office processes

16. Utilizing eSignature for LTC (cont’d) • Business Drivers • Increase participation • Leverage existing technology • Reduce expenses • Reduce cycle time • Make easier for consumer

17. The Future of eSignature • Leverage Technology in Individual Marketplace • Intent to buy systems • Multi-Life enrollments • Mixture of online/offline tools to help make sale • Challenges Ahead • Authentication of individuals • Adoption of eSignatures by medical community

18. Overview of MetLife’s Illustration Systems • Overview of Current Technology • MetWins • Online Illustrations • Decision support tools • Pros and Cons of Desktop vs. Online • The Future of Illustrations Systems

19. Desktop Software Pros: Can be used off-line Faster processing of files Will run as fast as PC speed Cons: Software loading restrictions Installation issues Dissemination of updates is slower, not as controlled Version control Online Quoting Pros: Takes advantage of the latest web features Immediate version control No special software to install Cons: Must have internet connectivity Speed of connection will dictate speed of generating illustrations Pros and Cons of Desktop vs. Online

20. The Future of Illustration Systems • Single rules-based quoting engine supporting desktop and online illustration systems • Thin client vs. thick • Improved version control (compliance, bug fixes, enhancements, new product release, etc.) • Enhanced decision support tools • Intent to buy with eSignature

21. Electronic Underwriting Promise & Pitfalls Bruce Baude CEO Long Term Care Group

22. Electronic Underwriting Potential Scope • Automation of some or all aspects of the underwriting process, beginning with applicant data capture and continuing through decision notification

23. Electronic Underwriting Why Pursue • Underwriting operations are typically manually intensive. By automating, providers seek to: • Improve Quality: consistency&accuracy • Improve Efficiency: reduced turnaround time • Enhance Management: metrics& reporting • Reduce Costs: resulting from improved quality and efficiency

24. Electronic Underwriting Baseline Analysis • Analyze historical underwriting data and current processes • Examine frequency, cost and complexity of decision types, including: • Approve vs. Decline • Application-only • Face-to-face assessment • Telephonic assessment • Attending physician statement Impact Low High Low High Ease

25. Electronic Underwriting Identify Automation Candidates • Define threshold minimums for automating processes (minimum cost and quality gains) • Focus on high frequency, high cost processes • Validate feasibility of process automation: • Required data is available in appropriate format • Systems can support or be modified to support • Quality/turnaround times significantly improve

26. Electronic Underwriting Identify Automation Candidates (cont’d) • Determine current process costs • Estimate automated process costs • Estimate costs to implement automation capabilities • Prioritize process automation candidates that meet threshold minimums

27. Electronic Underwriting Most Likely Candidates • Ordering Risk Management Information (RMI) requests • System capture of RMI data in standardized code formats • Approve/Decline of less complex decisions • Routing of applications for review/approval by appropriately skilled staff • Generating decision notification letters to agents and/or applicants

28. Electronic Underwriting Risk Management • Conservatively estimate automated process costs • Start with less complex processes • Determine if a process automation requires other processes to be automated first • Carefully introduce a newly automated process and institute stringent ongoing QA and Audit capabilities • Avoid over-automating complex processes – automate the simple tasks to make the required human decisions more efficient

29. Electronic Underwriting Summary • Develop an accurate baseline for current process performance and costs • Many automation opportunities will require process re-engineering • Systems changes may be broad • Automating complex decision-making may result in higher costs and lower quality

30. Q&A