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February 22, 2019 at 11:51 AM
(Related: Tools For Doing More Life Business in 2019)
Time kills deals. The life insurance business is no exception.
If the formal application process takes longer than normal, the client can get frustrated and lose interest. This is why broker general agencies seek ways to improve efficiency and cut the time from formal application submission to placement. It also improves the experience for the proposed insured and gets the commission paid quickly.
Insurance companies also benefit from a more streamlined formal application process and underwriting review.
The benefits are reduced overhead costs and more placed business.
Here are six ways to make that happen.
1. Fully complete applications to speed up the entire process.
Case managers and new business administrative staff spend hours “scrubbing” an application. This involves notifying advisors of incomplete answers to questions and then inputting these requirements into the new business database to keep track of them.
Replacement forms that are incomplete or not submitted can cause an application to be rejected.
Questions that are answered “YES,” but do not have the requested details will increase processing time for cases.
2. Provide answers upfront.
If the case has challenging underwriting concerns, such as alcohol consumption, gather as much detail as possible and present it in a cover letter to answer questions and present facts that will help to advocate for the client. Financial underwriting may also present challenges. For example, underwriters may ask how the advisor calculated the face amount, if it involves a complicated business purpose. Try to anticipate questions the underwriter will ask and provide the answers upfront. This will help them get the case approved. FAIU has impaired risk questionnaires that will assist you in gathering this information.
