You’ve Got Mail: Two Decades Later, Why Are We Still Talking About E-Delivery Rather Than Doing It?

by Colleen Risk, November 16, 2015
Industry Trends
North America

Abstract

The march toward digitization in the life new business and policy servicing process continues. Celent explores the current state of e-delivery processes and usage across life insurers in North America.

From humble beginnings in the early 1970s, email has evolved to be the most widely used technology on the Internet. The use of email to send documents is the most obvious use case for digital. The compelling question is why electronic delivery in life insurance is still not mainstream.      

Celent surveyed life insurers to understand the adoption of e-delivery within their organizations. Areas of focus within the report You’ve Got Mail: Two Decades Later, Why Are We Still Talking About E-Delivery Rather Than Doing It? include:

  • Progress of e-delivery.
  • Documents most likely to be e-delivered.
  • Benefits and challenges associated with e-delivery.

Celent’s analysis is based upon a survey of 17 North American insurers varying in size and distribution.

Only 25% of surveyed life insurance companies have adopted e-delivery. For many insurers, the pursuit of e-delivery has been hampered by the challenges of legacy systems and limited budgets. However, all the insurers surveyed believe that e-delivery is a worthwhile project and are prioritizing it along with other digital initiatives.

“Insurers are aware of the benefits of moving to e-delivery,” says Colleen Risk, a senior analyst with Celent’s Insurance practice and author of the report. “As they plan their budgets for the coming year, e-delivery will be a priority for many. Life insurers in particular are being left behind in the digital race and need to move forward with haste to catch up.”

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 subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

2

 

Key Research Questions

2

 

About This Report

3

 

Survey Responses by Tier

3

 

Survey Responses by Line of Business

4

 

Survey Responses by Distribution Channel

4

Is E-Delivery Being Universally Adopted?

5

 

Digital Adoption

5

 

Legislation

6

 

Challenges

6

 

New Business

7

 

In Force Policies

8

 

E-Delivery and E-Signature

8

What Are the Benefits That Insurers Expect from E-Delivery?

10

Final Thoughts

12

Leveraging Celent’s Expertise

13

 

Support for Financial Institutions

13

 

Support for Vendors

13

Related Celent Research

14

Sign in to download reports and access personalized information