Shell case study: Enabling straight-through touchless processing of 500,000 invoices
Straight Through Processing
description
Transcript of Straight Through Processing
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Straight Through Processing
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The Independent Challenge
Scott SinclairExecutive VP & Chief Operating OfficerTransamerica Life Canada
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Advisor and Client
DistributorCLIENT SIGNS PAPER APPLICATIONMost advisors spend 70% of their time completing paperwork
Carrier
Paramedical
ADVISOR DELIVERS APPLICATION TO DISTRIBUTORAverage 2 to 5 days to deliver Application to Distributor
Current Life New Business
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DISTRIBUTOR’S MAILROOM RECEIVES/SORTS
DISTRIBUTOR KEYS DATA INTO SYSTEM
DISTRIBUTOR SCANS OR PHOTOCOPIES
Current Life New Business
Carrier
Advisor and Client
Distributor
Paramedical
DISTRIBUTOR SENDS BACK TO ADVISOR IF NOTIN GOOD ORDER / MISSING DATA – 50-70% of time
ADVISOR SENDS BACK TO DISTRIBUTORDOCUMENTS IN GOOD ORDER
DISTRIBUTOR ORDERS PARAMEDICALS IF REQUIRED
DISTRIBUTOR COURIERS APPLICATION TO CARRIER - Usually 5 to 7 days from time of sale
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Current Life New Business
Carrier
Advisor and Client
Distributor
Paramedical
CARRIER RECEIVES APPLICATIONOn average 20-30% not in good order
CARRIER OPENS AND SORTS MAIL CARRIER RECEIVES PARAMEDICAL RESULTS10 days on average from sale to appointment to complete
CARRIER KEYS DATA INTO UNDERWRITINGAND ADMINISTRATION SYSTEMSCARRIER SCANS APPLICATIONCARRIER UNDERWRITES RISKCARRIER ISSUES CONTRACTCARRIER COURIERS CONTRACT
TO DISTRIBUTOR
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DISTRIBUTOR MAILS CONTRACT TO ADVISOR FOR DELIVERY TO CLIENT
CARRIER PAYS ADVISOR AND DISTRIBUTOR COMPENSATION
Current Life New Business
Carrier
Advisor and Client
Distributor
Paramedical
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INDUSTRY AVERAGE TURNAROUND = 36 DAYS
Current Life New Business
Carrier
Advisor and Client
Distributor
Paramedical
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Imagine A World...
Advisor and Client
Distributor
Paramedical
ADVISOR COMPLETES ELECTRONIC APPLICATION WITH CLIENT
ADVISOR SUBMITS APPLICATION ELECTRONICALLYTO DISTRIBUTOR AND CARRIER – 100% in good order
ADVISOR SUBMITS PARAMEDICAL REQUIREMENTS ELECTRONICALLY
PARAMEDICAL PROVIDES RESULTS TO CARRIER
Carrier
CARRIER UNDERWRITES RISKCARRIER ISSUES CONTRACTCITS FEEDS BETWEEN CARRIER AND DISTRIBUTOR
CITS FEEDS BETWEEN DISTRIBUTOR AND ADVISOR
CARRIER PAYS ADVISOR AND DISTRIBUTOR COMPENSATION
INDUSTRY ESTIMATED AVERAGE TURNAROUND 24 HOURS – Subject to Paramedical and APS
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Building the faster future... Drop Costs... Drive Sales
Imagine A World...
Advisor and Client
Distributor
Paramedical
Carrier
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What’s Unique for the Independent Channel
1. Advisor Focus / Engagement http://www.cliedis.ca/summit/CLIEDISSummitAdvisorSurveyResults.pdf
2. Common Capture and Delivery Platform
3. Standards – Shared -CITS
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What’s Unique for the Independent Channel
• Does Not Include Points of Competition– Product
– STP – Straight Through Processing
– Automated Underwriting
– Electronic Statements etc.
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Straight Through ProcessingA Career Sales Force Perspective
Norm LeblondDirector – Technical UnderwritingSun Life Assurance Company of Canada
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Current State
• 128,000 Life Insurance Applications– 20-25% Preferred
• 28,000 Critical Illness Insurance Applications• E-App Penetration Rate 99%• 40% of Non-medical Cases Accepted Electronically
– 15-20% of All New Business Applications • 70-80 Underwriters• 40% of Accepted Cases are Auto Mailed
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Looking Back 15 Years
• Strictly Life Insurance Sales– No Critical Illness, No Preferred
• 120,000 Applications Submitted Annually• E-App Penetration Rate 96%• 50% of Non-medical Cases Accepted Electronically
– 35-40% of All New Business Applications
• 25-30 Underwriters• Policies Produced, Checked and Mailed Manually
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Back to the Future!
• Enjoy the Benefits of Straight Through Processing – Less Touches – Decreased Turnaround Time– Increased Speed of Issue– Increased Placement Rate– Quality and Consistency of Underwriting
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Opportunities
Increase Straight Through Processing with:• Changes to Underwriting Requirements• Underwriting System Enhancements
– Include Preferred Criteria• Integrated Tele-underwriting• The Ability to Improve Use of Current Resources
– Vendors – Off-Site Underwriters
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Non-medical Requirements
• 30% of Applications are Available for Straight Through Processing
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Add Vitals and Labs • Potential to have 84% of Applications Available for
Straight Through Processing
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Add Integrated Tele-underwriting
• Potential to have 99% of Applications Available for Straight Through Processing
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It’s Not Easy!
• Important Things to Consider:– Time to Market– Cost/Benefit Analysis – Expertise Required– Large Scale Impact of Errors/Omissions
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In Conclusion
While it may not be easy, everyone can benefit with straight through processing.
For Sun Life’s Career Sales Force….it’s the way of the Past, the Present and the
Future!
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