Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Life Insurance

Celent: Application Costs Vary Widely

Your article was successfully shared with the contacts you provided.

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.

The average unit cost per policy issued was $1,058, the Celent researchers report.

The carrier units that sell policies through agents get only about 20% of their new business through electronic applications, while the carrier units that sell through wirehouses and banks get about 35% of their new business through electronic applications, the researchers report.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.