Director Life Product Management
When selling life insurance, it’s no secret that faster decisions lead to more business, but just as important is the relationship between decisions and agent satisfaction. Faster decisions makes for happier agents - clearly an important goal for any insurer with an eye on growth.
My experience is that agents will submit cases to a carrier paying a slight to even moderately lower commission because…. they get paid faster.
But more business coming in the door can mean larger and larger cases and that’s where Automated Underwriting (AU) comes into play – not just as a theory – but a must have for success.
I spoke recently at the MUD Group Annual Conference about AU and blossoming of the technology needed to support it. The automation of simplified cases and the emergence of jet issue has provided for the reallocation of human resources, once bogged down in the shear volume of cases, now free to focus on the larger and more complex cases in need of human decision-making.
A word of caution though – do not expect to automate all cases, you can’t automate all of your business. Rather, think of AU as another underwriter for whom you set approval limits, focused on the smaller, less risky cases.
But when used properly, automation, in tandem with customizable rules, electronic signatures, electronic applications and policy administration - carriers can get closer to the holy grail of straight-through processing than ever before.