The Big 3 (ACORD, DTCC, & IRI) Meet to Collaborate on Addressing the Challenges of the Industry

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On the last week of July, 2019, insurance industry technology leaders and experts from the Depository Trust Corporation (DTCC), Insured Retirement Institute (IRI) and ACORD had a meeting in New York. For many years the three organizations (ACORD, DTCC and IRI) have worked on countless initiatives that either compliment or overlap their products and services. Representatives from all three organizations do participate in each other’s working groups and committees to sync up and contribute where possible, however this is the first time in recent years that that the three organizations exclusively have met to update each other on key activities and see where they can work together moving forward.

 

Some of the attendees included Jim Quinn- Chief Technology Officer of IRI;  and from DTCC’s Insurance & Retirement Services Division: Barbara Smith – Executive Director and Jeanann Smith, Senior Product Management. ACORD who hosted the meeting had several key people participate such as Malou August – Senior Vice President of Standards & Membership, Karen Mottley – Business Architect of the Life & Annuity Program, and Yolanda Austin who is ACORD’s leading Life & Annuity Consultant.

 

ACORD provided InsurTech Express a quote signed off from leaders of all three organizations, “ACORD, DTCC and IRI met to discuss key initiatives, and identify opportunities to collaborate. Some of the initiatives we discussed were Digital Standards, Distributed Ledger Technology, New Business, Replacement Automation, and Regulation 187 efforts. The initial focus is on annuities, and we also plan to engage industry leaders throughout the broader Life community. We are excited to come together to help guide industry priorities, promote increased standards adoption, and contribute to greater successes within our industry.”  The meeting didn’t only include updating on each organization’s vision and key initiatives, but they also wanted to address the challenges the industry is experiencing today. ACORD, DTCC and IRI realize there are several opportunities where they can better collaborate.

 

The good news is that the meeting was a success! There was progress on getting alignment on issues in today’s initiatives and addressing those for the future. ACORD, DTCC and IRI do have common goals like increasing adoption and promoting standard usage. Not only did they decide to collaborate on the key initiatives mentioned above (Digital Standards, Distributed Ledger Technology, New Business, Replacement Automation and Regulation 187), but it  was agreed upon to continue the conversation and meet again, which includes taking some substantive action like proposing to write a White Paper together for providing guidance in the industry.

 

On the sales and business side of insurance and retirement services, many people don’t realize that the engine behind the seamless automation for submitting new business, paying commissions, money settlement, Inforce services, producer licensing, advocacy and education are all driven or a result of the initiatives by ACORD, DTCC, and IRI. The Big 3 working together will help with speed to market, reducing costs, growing adoption, and driving more implementations making the industry a better place.

 

About ACORD:

ACORD (Association for Cooperative Operations Research and Development) is the global standards-setting body for the insurance and related financial services industries. ACORD’s Mission: For nearly 50 years, ACORD has been a non-profit, industry-owned organization that enables the success of the global insurance industry by leveraging the flow of data and information across all insurance stakeholders through relevant and timely data standards.

 

About DTCC Insurance & Retirement Services:

DTCC’s Insurance & Retirement Services (I&RS) offers a suite of streamlined processing and compliance-driven solutions for carriers and their distribution partners — broker/dealers, banks, brokerage general agencies, independent broker/dealers and other firms — through a secure, centralized and automated infrastructure. This infrastructure enables insurance carriers and distributors to exchange information at various points throughout the annuity and life insurance processing cycle.

 

About the Insured Retirement Institute:

The Insured Retirement Institute (IRI) is the leading financial services trade association for the retirement income industry. Members represent the entire supply chain of insured retirement strategies, including Insurers, Banks, Asset Managers, Broker-Dealers, Distributors, Financial Advisors and Solution Providers. IRI provides a wealth of educational, research, advocacy, and ops & tech benefits to its members


 

Place More Business And Get Paid Commissions Faster Using Life Standard Data Messages

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By Ken Leibow, InsurTech Express

 

It’s easy to think that this is over simplified, but if you want to place more life insurance business and get paid commissions faster, then you need to eliminate paper! Use eApp instead of submitting a paper application; don’t send licensing and contracting forms via mail or email—do it electronically on a platform like SureLC by SuranceBay; eDeliver life policies rather than mailing or hand delivering paper policies; and process commissions from a carrier’s commission data feed instead of manually using paper commission statements. Trading partners in the life insurance industry have their administration systems and distribution platforms interconnected by using insurance data exchanges that move data seamlessly via standard messages. What you get is speed, accuracy and reduced labor costs.

 

Accelerate Cycle Time with eApp and eDelivery
There are several ways to submit life business electronically such as using an eApp or eTicket platform plugged into one or more fulfillment models like a tele-interview, accelerated underwriting or predictive underwriting with auto-issue. Whether the agent is submitting the business on a single carrier platform like CBLife QuickApp or a multi-carrier platform like iPipeline iGO, the data is being transmitted to the fulfillment center or directly to the carrier using a standard data message. This data automatically populates the recipient’s admin system in good order, auto-creating the case and triggering requirement ordering or ultimately policy issue. Cycle time compared to processing paper is at least 60 times faster resulting in up to 85 percent placement of paid business.

Delivering life policies electronically (eDelivery) benefits carriers, agencies, agents and consumers. The cost savings are huge; there is also a decrease in NTO rates, better customer experience, tighter legal and compliance control, and commissions are paid faster. Here are some impressive eDelivery statistics:

  • 70 percent reduction in cycle time.
  • 55 percent of the eDelivered polices are being completed within 48 hours.
  • Consumer opt out rate is below 10 percent.
  • 95 percent of agents repeat use (Stickiness).
  • Reissue time is significantly decreased.
  • Eliminates the cost of postage and transportation.
  • Higher placement rate (ePayment).
  • No need to chase down delivery requirements.