Exclusive Equisoft & Aite-Novarica Study on Insurance Distribution Bottlenecks: 40% of CIOs Cite Digital Roadblocks as Causing Policy Approval Delays
by Grace Ata
AVP, Product Development at Equisoft
Originally published on Equisoft Lastest News
As brought out in this Aite-Novarica research commissioned by Equisoft, the main pain points for insurance distributors when submitting new business to life insurance carriers are the lack of visibility into the process and the significant variability in the amount of time needed to pass underwriting review and issue a policy.
Philadelphia, November 9, 2021 – In a new research report commissioned by Equisoft, Aite-Novarica presents the findings of a study conducted with US life insurers to identify the bottlenecks that distributors are facing across the policy application cycle, and what could be done to help them gain more visibility into the process, avoid unnecessary delays and, ultimately, improve advisor and customer satisfaction.
“This research project was birthed out of a need for us to try to understand the truth behind the frustrations in the independent insurance channel around approval processes and timelines. We wanted to reach out to carriers and distributors, to understand what their perceptions were of the issues that were being experienced in the field. We wanted to understand what the roadblocks were as well as what carriers were doing to address these challenges.” said Grace Ata, AVP Product Development at Equisoft.
As highlighted in Aite-Novarica’s report, the main roadblocks in new business submission fall into three categories: agent delays, digital delays and process delays. Those delays experienced during the submission process are drawing out the sales cycles and hurting both the advisor and customer experiences.
“The inherent complexity of many life insurance products results in significant variability in the amount of time needed to pass underwriting review and issue a policy,” explained Paul Legutko, Senior Principal at Aite-Novarica. “Insurers recognize that some of that delay is unavoidable, but data pre-fill, quick quote, AMS integrations, third-party data, and other capabilities can accelerate the process and avoid NIGO submissions.”
Additional key findings of the report:
- CIOs believe that the digital channel is the solution to improving communication and submission quality while increasing sales.
- While agent portals are the most used channel for new business submission, life insurers note resistance to digital adoption and are surprised that agents are not leveraging portals, e-apps, and digital marketing more widely.
- As larger agencies, brokers and BGAs demand faster and more flexible compensation arrangements, insurers will feel an increasing push for direct data integration with agency systems – with over 65% of CIOs feeling that agents are not entirely satisfied with compensation tech.
For further information, please click here to download the full research report.
Aite-Novarica Group is an advisory firm providing mission-critical insights on technology, regulations, markets, and operations to hundreds of banks, insurers, payments providers, and investment firms — as well as the technology and service providers that support them. Comprising former senior technology, strategy, and operations executives as well as experienced researchers and consultants, our experts provide actionable advice to our client base, leveraging deep insights developed via our extensive network of clients and other industry contacts. More information at aite-novarica.com
Founded in 1994, Equisoft is a global provider of advanced insurance and investment digital solutions. Recognized as a valued partner by over 250 of the world’s leading financial institutions in 16 countries, Equisoft offers a complete ecosystem of solutions, from innovative front-end applications to extensive back-office services and unique data migration expertise. The firm’s flagship products include a SaaS policy administration solution, CRM, financial needs analysis, financial planning, asset allocation, fund and portfolio analysis, quotes and illustrations, electronic application, agency management systems, as well as customer, agent and broker portals. Equisoft is also Oracle’s largest and most experienced partner for the OIPA platform. With its business-driven approach, deep industry knowledge, innovative technology, and expert teams based in Canada, USA, UK, Chile, Colombia, South Africa, India and Australia, Equisoft helps its clients tackle any challenge in this era of digital disruption. For more information about our products and services, please visit www.equisoft.com.
Jean Sabbagh, Vice President, Marketing, Equisoft, T +1 514.989.3141 ext. 122, firstname.lastname@example.org