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Life Health > Life Insurance

Ask the expert: How does straight-through processing help?

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The question was: If my broker uses “straight through processing” for the policies I submit for life settlement offers, how does that impact the outcome for my clients?

The answer is: This is actually a two-fold as straight through processing (STP) addresses two of the longstanding and major issues/critiques facing the life settlement industry. These are consumer privacy and transaction timeframes.

STP allows information to be transferred between producers, brokers, providers and investors in the life settlement process without each manually re-entering the same information repeatedly over the entire transaction lifecycle. It is the result of systems effectively communicating with each other to eliminate manual processes. STP mitigates the biggest risk facing the life settlement marketplace today, privacy of data. By eliminating e-mail, fax and even ftp delivery of sensitive personal data, life settlement clients are now protected as never before.

A long standing critique of the life settlement market has been the excessive timeframe the process takes from initiation to closing. But the automation of the life settlement process results in qualified cases being delivered to qualified buyers efficiently and instantly. Distribution is broader and instantaneous, allowing all parties to focus attention on creating the most value for their clients as opposed to wasting hours on repetitive data entry. More time is spent on policy evaluation and pricing, creating a more efficient and competitive marketplace for the underlying client.

The net result will be a faster, more efficient process for the client, from initiation to settlement closing.

Overall, the added security around the transfer of critical client data and the creation of a more efficient marketplace makes communication via STP a win-win situation for all market participants.

David Kirby
PolicyTrac Technologies, LLC.
Boca Raton, Fla.
[email protected]


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