Life insurers should try to do a better job of using electronic applications to reduce the cost of processing new business.
Researchers at Celent L.L.C., Boston, a consulting firm, report that the average cost of processing a life insurance application at 11 carriers studied averaged $461 per policy and ranged from $29 to $763, or $3.11 per $10,000 in death benefits to more than $13 per $10,000 in death benefits.