Ken Leibow

The responsibility of insurance professionals is clear-advise clients to make decisions based on their own circumstances and means. Agents have a responsibility to share their knowledge of a complex and evolving industry with their clients, and the tools they use are critical to making their clients feel comfortable with the sales process.

Agents have access to a vast array of technology tools: some of these tools work well-others not so well. The critical path is to understand the pain points and leverage new technologies to help agents be successful.

Life Insurance and Annuity Form Tools are a Big Success!
The life insurance and annuity industries have mastered forms repository tools for packaging forms for new business, licensing/contracting and in-force services. This is true both for single carrier producer portals and multi-carrier form tools hosted on a brokerage general agency’s website. These form tools are easy to navigate, packaging forms by state, product and business need.

Some platforms have intelligent forms with rules and even eSignature functionality. The forms in the package are fillable and easily emailed or printed. Vendors such as iPipeline, LaserApp Software and Paperless Solutions Group offer multi-carrier form tools. Most carriers offer forms on their producer portals. Online accessibility to forms has grown significantly since being introduced over 15 years ago-online forms are literally everywhere.

Struggles with eApp
For life insurance, annuities and long term care insurance (LTCI), adoption of submitting new business electronically using eApp has lagged.

For annuities, the annuity order entry (AOE) platforms became available to large wire houses and broker/dealers in 2006. Today, fixed annuities and index annuities are the production leaders for the independent broker/dealer and brokerage general agency (BGA) distribution channels, but AOE tools generally have been too complex and expensive for these distribution channels to use. In the last 18 months, longstanding AOE vendors have been trying to penetrate these markets with simplified and more cost effective versions of their AOE tools. New vendors have entered the space. Carrier portal or multi-carrier AOE solutions have not moved the needle yet, and agents are using paper to submit most of their annuity applications.

In the life insurance space, drop tickets for term life insurance have been successful because of the simplicity, market awareness and carrier mandates. On the other hand, eApp for life insurance has struggled, primarily because it is inconsistently available across life insurance carriers and products, as well as the fact that most eApp solutions do not offer an automated way for an agent to order a paramed exam. In addition, vendors do not push the life insurance application data to the BGA’s agency management system. Consequently, when an agent is confronted in a multi-carrier experience with options from forms to drop tickets to eApp depending on the carrier and product, confusion results. Until there is consistency in the agent experience and more critical features are added to help promote life eApp, it may continue to lag behind paper applications and drop tickets.

LTCI differs from life insurance and annuities in that there are far fewer carriers offering the product. There is no multi-carrier platform available. Many LTCI carriers have proprietary eApp platforms, resulting in the need for more standardization in the agent’s experience as suggested by feedback from the Intercompany Long Term Care Insurance (ILTCI) conference in March, 2015. LTCI eApp adoption remains relatively low.

Mobile Apps
According to LIMRA, the average age of an insurance agent is 551. In 2013, the Pew Research Center released figures on internet usage. Internet usage was increasing-98 percent of adults under 35 years were going online, with the largest increases in usage coming from three age groups: 25-34 (98 percent, up from 92 percent in 2012), 45-54 (91 percent, up from 84 percent), and, most notably, 65+ (60 percent going online). You can also find more up to date and different internet usage facts using this source here or similar online material regarding internet stats.

The smartphone and tablet usage numbers in 2014 are staggering. In 2015, 57 percent of users across all age groups do online banking with their smartphones per the Pew Research Center. This trend tells us that over the next five years more agents may be carrying smartphones and tablets than laptops and writing pads.

Several carriers today offer the agent mobile apps for quoting and product information. The agent can browse marketing resources for the latest sales ideas, flyers, brochures, product guides, presentations and videos. Some BGAs offer agents mobile apps focused on life insurance, including multi-carrier term life insurance quoting and drop ticket, universal life (UL) insurance quote request, pending case status, exam ordering and product news from multiple carriers.

On the annuity side, the BGAs often include a multi-carrier rate information tool for fixed and indexed annuities in their mobile apps. In addition, website tools are being optimized to work on tablets such as an iPad.

The need for mobile apps is growing as more people move to mobile devices and away from websites. Moreover, as you can tell from some of the apps that are available on the Fileproto website, this trend is showing no signs of slowing down and it will therefore be intriguing to see what else the future holds for this revolutionary use of software. Rita Northen, director of Global Insurance Solutions Group, explains why agents might prefer the simplicity and ease offered by mobile apps: “One of the biggest technology challenges we face as a BGA is the proliferation of carrier-specific platforms that do not serve the ultimate goal of technology: to make our jobs easier,” said Northen. “Agents deal with numerous carriers on a daily basis and are resistant to spending the time and effort required to learn multiple processes that basically perform the same function for different carriers.” Northen added, “On a more positive note, I am excited to learn more about a new customizable mobile app called MobileBGA, which is designed to provide agents with the essential marketing tools to close the deal when out on client appointments. I believe that carriers, BGA’s and vendors should focus our efforts at innovation that will simplify, rather than complicate, our important mission of selling insurance.”

Other Agent Tools like Sales Illustrations and Email Security
Tony Kravitz, president of New Generations Insurance Marketing, Inc., has found some technology tools that are working for his agents, and some that are just starting to get traction.

“The obvious things working for agents in technology are online forms and illustrations,” says Kravitz. “They have been around for a while and have been ingrained as part of the business model.” Kravitz adds: “Email security is beginning to catch on with agents. We are beginning to see more agents concerned about sending and receiving securely. Many have started using encryption software and quite a few are starting to upload documents directly to us through links on our website and in our emails.

“We have started seeing client relationship management (CRM) systems becoming more popular with agents. We have even started offering to supply one for them as a value-add from our agency.

“I wish I could say that on-line applications were a hit, but it has been a struggle to get many agents to submit applications that way. However, we are starting to see an uptick in online use of drop ticket applications. This has been especially true where the agent can submit a ticket for multiple carriers through a single interface. I expect to see a lot of growth in these platforms in the next couple of years. It makes it easier for the agents that are less experienced in life insurance, such as property and casualty producers and health insurance agents.

“While we have not yet seen many agents using mobile apps as a primary focal point for their business, I believe that will change as we tie more functionality into those applications. If an agent can get information, run a quote for multiple carriers and start a drop ticket–all from a mobile application-I feel adoption will increase dramatically.”

Summary
Insurance technology tools for agents are plentiful and developmentally varied-some have peaked, others have become obsolete, while still others are just getting started. Now is the perfect time to investigate which insurance technology tools are working and which ones are not. It is important to implement best practices for agent insurance technology solutions.

As we look into the future, what opportunities and trends should grab our attention? Mobile apps are certainly a key trend and a place where agencies, carriers, and vendors should focus their investments.

Footnote:

1. 2015 LIMRA Life Insurance Conference

In the last decade and a half, agents have grown to depend on brokerage general agency (BGA) and carrier websites for tools to help with sales, marketing, licensing, underwriting, commissions and status of their pending business. With the surge of mobile devices such as smart phones and tablets, BGAs and carriers have also started to create mobile apps for agents to use on the road. Today, insurance technology tools require flexibility, scalability, speed, simplicity, easy access and mobility in order to be considered best practices.

Mobile Best Practices

From an insurance technology standpoint, mobile apps are the fastest growing agent solution. BGAs are creating their own IOS and Android apps, putting the BGA’s store in the agent’s mall (smart phone and tablet). Typically, tools most commonly seen in a BGA’s mobile app are focused on life insurance. They include multicarrier term life insurance quoting and drop ticket, universal life insurance (UL) quote requests, pending case status, exam ordering and product news from multiple carriers. On the annuity side, the BGAs often include a multicarrier rate insurance tool for fixed and indexed annuities in their mobile apps. In addition, website tools are being optimized to work on tablets such as an iPad.

Several carriers today offer the agent mobile apps for quoting and product information. A best practice for agents is to provide client marketing material, needs analysis tools, and point-of-sale tools such as simulators for linked benefit products. Sales concepts are extremely popular with agents. The agent can browse marketing resources for the latest sales ideas, flyers, brochures, product guides, presentations and videos—Transamerica’s LifeSales iPad app and Genworth’s The Index Institute for mobile are good examples.

Big Data for Agents and

Pending Case Status Best Practices

Agents are always looking for high quality leads. The advancement in data mining using business intelligence tools has created an opportunity to provide an agent new sales from term life insurance conversions, as well as from cross selling other products to existing clients. Predictive modeling and underwriting can also match new prospects with insurance products, which is how Amazon and Google generate business.

The success of new business eSubmission tools depends on the quality of the communication of the status of the case. A best practice is to provide the agent with real time status to help get a case through underwriting and issued as quickly as possible. Faster cycle time drives the placement of more business, putting more commissions in the agent’s pocket. With all the models available for submitting life and long term care insurance business, real time, easy-to-read pending case status, coupled with multiple status delivery methods offered by both the carrier and BGA to the agent, is critical.

NFP, for example, has been innovative in both big data and pending case status feeds for their agents. Adnan Raja, MSPM, PMP, vice president of field technology solutions, said:

“At NFP, we are currently focused on big data and pending case feeds. Many vendors and companies have tried to consolidate pending case feeds from the carriers, but it is challenging to unify the data from different carrier feeds, analyze the information and define actionable steps. Case managers have a hard time deciphering what’s actionable and what’s not from these disparate data sets, which in turn makes the feeds virtually unusable.

“NFP approaches the problem by normalizing the carrier feeds—while keeping the original messaging from the carrier intact—to deduce actionable steps. We can then consolidate the data in a way that is easy to use and understand and provide an intuitive portal for our membership.

“This ties into big data, another key initiative for most industries these days, including insurance. NFP uses visual analytics tools to help our brokers mine their existing book of business to generate additional leads and opportunities. Tapping into big data in a meaningful way is high on our list of best practices, because doing so helps brokers to better support their existing clientele and build stronger long term relationships.”

Life Insurance: Quoting,

eSubmission and eDelivery

Most BGAs today have a multicarrier quoting tool for agents to use on their website for term life insurance. A best practice is for the agent to have a quick transition from a quote to a drop ticket. The drop ticket is sent to a fulfillment center where the application is completed via a tele-interview and the exam is scheduled. During this fulfillment process, a best practice is to offer the client multiple signing capabilities, such as voice signature and e-signature, as long as the interview does not exceed 30 minutes. One size does not fit all. In fact, many BGAs also have posted on their websites, alongside the multicarrier quoting tool, carrier-specific tools, because many agents prefer a specific carrier’s products and services, such as Genworth’s Life Quick Request or Legal and General’s AppAssist. You will see buttons that link to these quoting/drop ticket solutions on the main page of the BGA’s website. Some agents also access these tools from a secure carrier website for producers.

While drop tickets are popular with agents for term life insurance, permanent life products such as index universal life illustrations are run by the BGA more than 80 percent of the time. Several BGAs do have a fillable online form for the agent to complete for a UL quote request; however, these illustration requests are predominantly handled via telephone. The trend is growing for the BGA to email the agent a link to access the illustration and then be able to seamlessly pass into a drop ticket process or an eApp process. This technology allows BGAs to help their agents submit more “in good order” business, which is typically processed faster, resulting in higher placement rates. This process is also being leveraged for linked benefit products. The adoption growth will depend on the agent’s experience, ease of use and market awareness.

Tying together the end-to-end process for life insurance is ePolicy delivery. eDelivery gets the policy in the client’s hands quickly, allows the client to e-sign the delivery requirements, and automates the payment of premium due all in one simple online experience. Cycle time is up to 70 percent faster and up to 5 percent more business is placed, which positively impacts the agent’s bottom line.

Annuity and Long Term Care

Best Practices

Agents are looking for quick access to annuity product information. Most BGAs have a multicarrier spreadsheet that details product information, including state approvals, qualified and nonqualified deposit amounts, interest rate, surrender charges and bonus rates. There are some search engine tools available, but most popular is the spreadsheet format. Agents are also looking for a multicarrier forms repository so that they can get easy access to annuity application packages with a search function for state-specific forms.

What’s new is the access to an annuity order entry (AOE) platform that has all of the product rules built in, an e-signature option, as well as data input with auto-populating the annuity application forms. Financial advisors predominantly use these AOE tools provided by their broker/dealer. They typically focus on variable annuity products. The cost for a BGA to deploy an AOE tool had been too expensive. Vendors are now scaling back the functionality to fit the independent agent for fixed and indexed annuity products, and making it more affordable to deploy. Agents will now have AOE available to simplify and accelerate the annuity submission process.

The long term care insurance (LTCI) market is evolving with alternative products and changes in product features. Field underwriting has been a thorny topic with agents—how to accurately assess a client’s eligibility for LTCI and then providing an accurate premium quote so that eligible clients are approved as applied for. There are a couple of solutions available. One is a medical pre-screening form that an agent completes on a client and then sends to the BGA’s in-house underwriter. The other solution is a medical pre-screening tool such as Genworth’s LTC eValuate, which helps determine eligibility for LTCI and quickly does reflexive questioning on medical conditions with real time results. LTCI eApp and drop ticket tools, such as those for life insurance, are available. Agents who have easy access and good experience take advantage of eApp and drop ticket, but unfortunately the adoption is much less than it is in life insurance. Agents are looking for training on how to use eApp and drop ticket for LTCI.

Regardless of the medium used to deliver the tools, agents ultimately want an experience that will help them be more productive in the sales process. It’s important to understand the major differences and drivers for agent adoption of insurance technology solutions. Best practices begin with content for educating with fast and easy-to-use tools that can seamlessly integrate from the sales process to eSubmission. Agent best practices are the blueprint for better service to clients and placing more business.