How Digital Tools Can Accelerate the Life Insurance Sales Process

Originally posted at MIB Blog

Sales practices stress that the faster a product can be delivered, the higher probability there is that the sale will close. The insurance industry is no different, however applications received not-in-good-order continue to be the standard. While studies vary, it is estimated that approximately 60% of paper applications contain missing information, causing delays to the underwriting process and inefficiencies for carrier and agents, ultimately increasing the risk that customers may disengage. Obtaining missing information can take weeks of back and forth with the customer, adding significant delays and frustration for everyone involved. This can result in the loss of a sale, ‘sunk costs’, and the potential to lose a prospective or long-standing client. Fortunately, this problem can be minimized by using the right tools out of the gate.

Field Underwriting: Asking basic questions of the client up front allows distribution partners to set expectations proactively, ensuring that all relevant information is identified. Consider using a tool to help with real-time assessment of the necessary information including:

• Medical backgrounds – What is the client’s medical history, including all test, prescriptions, as well as scheduled procedures? Consider providing a checklist to the client before your meeting so they are prepared and have the names/addresses of their doctors readily available.
• Family history – Often bypassed when talking to a client, their family history can be the difference between a preferred and standard offer.
• Avocations – Not all avocations are considered ‘hazardous’ by clients, but their social media may tell another story. Understanding the full details (frequency, location, depth/height, training) may help the underwriter feel more at ease.

Electronic Applications: Eliminate the need for distribution to stay current on the many form changes with each carrier by minimizing your dependance on paper applications that are prone to errors and may cause underwriting delays due to:

• Outdated, missing or incorrect forms.
• The need for additional supplemental forms based on answers to questions on the application.
• State variations.

Streamline requirement ordering: Even with best efforts, unforeseen items can materialize during the underwriting process. Consider a streamlined, compliant way to collect outstanding requirements while minimizing frustration for both agents and clients due to:

• Miscommunication or misunderstanding on what questions or items are being asked.
• Frustration as forms are not readily available.
• Security concerns when providing confidential information.

As the life insurance industry becomes more digitized, tools that automate the application and requirements gathering processes are helping to address these challenges. These tools collect data in a secure and electronic fashion, replacing manual processes and the uncertainties that come with posting physical materials. The best tools support agents by enabling them to customize client-specific questions based on the underwriting needs of each carrier.

Paperless Solutions Group offers a full suite of digital services and tools that help improve the customer experience, streamline workflows, and maximize efficiencies from application submission throughout the underwriting process.

Paperless Solutions Group eValuate℠ enables field underwriting in a consolidated, easy to use interface to accurately assess the risk selection and provide illustration quotes.

• Single or multi-carrier versions available
• Supports multiple impairments and comorbidities
• Leverages carrier-specific controlled rules and underwriting guidelines

Paperless Solutions Group eApplication℠ digitizes the application experience through the use of fillable forms and sophisticated rules that can be customized to create a personalized, unique user interface.

• All forms are automated and fillable.
• Includes a sophisticated rules support that can be customized to carrier or channel.
• Supports long or short forms.

Paperless Solutions Group eRequirement℠ enables agents and carriers to collect additional information in a simple, consolidated and automated fashion. It can be used no matter how the original application was submitted and automates collection of:

• Missing or incomplete forms – outstanding items can be highlighted to draw attention.
• Additional documents identified through the underwriting process.
• Answers to applicant-specific questions through our customizable questionnaires.

PSG’s eApp and eRequirement product come with an imbedded and compliant eSignature feature to streamline your ability to populate and complete forms in a single process.

To learn more about how Paperless Solutions Group, an MIB business, is helping digitize the insurance landscape, visit www.paperlessolutions.net or reach out to us at PSGinfo@mib.com.