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The end of » old » proposals electronic approach


Alain Thériault

1 February 2018 11:30

Photo : Freepik

Most insurers north americans were planning to reduce their use of proposals on paper and electronic disconnected (paper and digitized) in less than two years. They will increasingly be the proposal Internet, reveals an extensive study of the Society of Actuaries (SOA) published in December 2017.

Based on a survey of actuaries and underwriters in-chief of 24 insurance companies (19 u.s. and 5 canadian), the report entitled Improving the New Business Process Survey Report reveals that insurers will use less paper and more proposals on the Internet. Among respondents with a canadian presence include Co-operators Life, Desjardins Insurance, Financial Foresters, Ivari, Sun Life Financial , and Primerica.

Except three respondents, all companies are in a position to accept electronic submissions, and nearly one-quarter agree that they are signed so that voice (five respondents). Two of them use only proposals electronic. Ten-nine accept the electronic signature.

Multi-channel Distribution

The report of the SOA also raises the captive agents of the insurance companies were more likely to use electronic submissions, so that more than one-third of respondents indicated that they receive 80 % or more proposals electronic. These proposals are available on computer and tablet, and smart phone in 19 % of the respondents.

Nine of the 13 respondents indicated to receive 1 % and 40 % of the proposals Web the independent network (independent consultant, general agent, firm of securities), including seven in a proportion of 1 to 20 %. Three respondents say that this share reached between 81 % and 100 % from the independent network.

The companies surveyed employ a multiplicity of distribution channels, including direct sales online, the network of securities regulators and integrated financial services. The two dominating networks among the respondents are the brokerage advisors or general agents, and the network captive. The majority uses more than one channel of distribution (62 %), and two respondents said they use five or more channels.

More analytical

According to the report, a challenge gnawing continuously the industry in terms of new business : how to subscribe faster and better at a lower cost. It seems that lowering their underwriting requirements will be the avenue that will be concentrated on survey respondents in the SOA. Several provide add of the capabilities of predictive analytics in their pricing methods, or improve capacity.

More than half of the insurers have said they use an automated underwriting system capable of taking decisions. Most of the third parties that are not already here are planning to be here two years. Among the users of system, more than half have opted for an external solution, custom or have developed their own system. In addition to the information contained in the proposals electronically, they feed their system, among other medical data of the central cooperative of the industry, the MIB Group.

Thanks to changes to the pricing, about one-quarter of respondents indicated that their company had been able to approve 90 % of all insurance proposals in a period of less than 30 days (80 % for more than half of the respondents). Among the changes that come in mind are the criteria of all ages and coverage amounts, as well as the charging systems automated.

Medical Tests at the door

The desire to add requirements for credit score follows closely in the additions that plan to provide underwriters to speed up the subscription, while minimizing risks and costs. The respondents to the survey of SOA also intend to increase their requirements, non-medical, the use of databases on drug prescriptions and interviews at a distance.

On the other hand, the medical exam came up as a requirement the most likely to be abandoned. The insurers surveyed also provide for reduce the use of examinations paramedical profiles in the blood and the electrocardiogram. They do not use the samples of dried blood and fluids oral.

The study comes on the heels of that of Reinsurance Group of America (RGA), according to which 68 % of insurers expect to invest in order to improve the efficiency of their underwriting process in the next three to five years.

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