Raising the Bar: Tools and Tactics to Drive Life New Business Efficiency
AbstractBoston, MA, USA May 1, 2007
Data quality issues help explain why most carriers struggle with new business unit costs.
The struggle to reduce costs and to improve new business efficiency continues to vex carriers. One reason is the industry's continued reliance on paper applications.
"The tools exist today to address this issue," says senior analyst Craig Weber, author of the latest Celent report, . "But tradition still trumps innovation in life insurance new business. So many carriers are mired in inefficient processes that have remained unchanged for decades." Weber notes that carriers with e-applications can leverage higher data quality throughout the new business process, which makes the process more efficient for carriers, agents, and customers.
The 33-page report is based on a Celent benchmarking exercise that examines data provided by 11 prominent life insurance carriers. The report reveals the tactics and strategies used by carriers within their new business departments. A companion report, Setting the Bar: Key Metrics in Life New Business, January 2007, discusses metrics such as budget per insurance application received and per policy issued, staff productivity, average staff costs by position, average new business cycle time, and more.
A table of contents is available online.
Members of Celent's Life/Health Insurance research services can download the report electronically by clicking on the icon to the left. Non-members should contact email@example.com for more information.
Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].
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Table of ContentsBoston, MA, USA May 1, 2007
|Suggestions on Data Usage||6|
|About the Respondents||8|
|Face Amounts and Insured Amounts||9|
|Tactics and Strategies||12|
|Carrier by Carrier Summary||14|
|New Business Automation||15|
|Missed Automation Opportunities||16|
|Differentiating Producer Service||21|
|Making Sense of the Numbers||25|
|Not in Good Order||25|
|Application Submission Methods||26|
|Objectivity and Methodology||32|