In today’s hectic and fast-paced world, the latest technology solution has become a “must have” for top life insurance producers. From BlackBerrys and iPhones to electronic forms and telephone underwriting, those who write life insurance are always looking for a way to maximize their time and minimize their headaches.
A new way of doing business, however, combines the latest technologies into one process, which can make it simpler to complete a life insurance application, eliminate common mistakes, and speed up underwriting — and ultimately can make it easier to sell life insurance.
So how does it work? Essentially, producers use a Web site that offers them basic health and avocation screening, provides an accurate quote, and allows them to complete a simplified electronic application instead of the traditional paper application and quoting used by many. This new process has been so successful that many carriers have already developed or are developing their own proprietary systems that integrate health analyzers, product quoting, electronic applications, and even agent and client e-signature options to simplify the life insurance application and underwriting process.
Unfortunately, these carrier-driven systems have their limitations. While useful in speeding up the application process with the particular carrier that’s offering the system, none of these carrier-run options support applications with competing companies. This can be a major obstacle in the event of adverse underwriting, changes in product availability or financial ratings, and myriad other factors. This limitation has prompted several large, national brokerage agencies to create multi-carrier systems of their own.
[Editor’s note: The article’s author, Ryan Pinney, is the brokerage director for Pinney Insurance Center, one of the companies offering such systems.]
Just like the single-carrier options, these multi-carrier platforms provide health screening, quotes, and an application that is submitted online. The difference is that brokerage agencies will also complete the application, order exams and labs, obtain medical records, and ultimately complete the entire life insurance process directly with your client.
“Having more accurate quotes drives better profitability and is, in part, responsible for placement rates that are 10 to 15 percent higher than traditional term business,” said Andrew Hamill of TioTERM in Providence, RI.
In addition to a multi-carrier platform and more accurate quoting, these systems can also provide a time-saving benefit with simplified applications, or “tickets,” that require the agent to ask only the most pertinent questions before submitting the online insurance request, which is then completed and processed by the brokerage general agency or a third-party vendor.
“The service enables an agent to hand off a client to us for complete submission to commission service,” said Eric Carlson, vice president of technology for MyConcierge at National Brokerage LLC in Boise, ID.
The paperless process further eliminates the need for the agent to carry a briefcase full of applications and rate cards to sell life insurance. It also ensures that the application is completed correctly the first time.
“Our business is too complicated as it is with 15 to 35-page applications,” said Paul Piubeni, president of PJP Insurance Services in Spokane, WA. “These systems streamline the entire process and prevent common mistakes like missed signatures and missing or incorrect forms.”
Of course, these applications aren’t for everybody. There are a growing number of options to choose from, each with its own requirements and benefits. But even knowing your options in this arena can help put you ahead — and keep your business streamlined should you choose to go the online application route.
Ryan Pinney is the brokerage director of Pinney Insurance Center. He can be reached at pinney@pinneyinsurance.com.
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