Large Enterprise Legacy Life Insurance Carrier

SITUATION

Large enterprise “legacy” Life Insurance Carrier with approximately 2000 agents:

• 125,000 policies issued each yearTerm, Variable, Whole and Universal Life
• High overhead and new business costs
• 85 underwriters
• 150 call center service agents
• 130 tele-services support
• Average acquisition cost per policy issued: $1400

Technology

• Complex legacy: 20 systems; four generations
• Separate Document Management, Work Flow, Quoting, Billing, E-Apps, Underwriting, Issuance systems
• Multiple IT shared services support staff
• PMO overhead to manage systems updates

Process

• Paper and manual based system
• APS ordered on every case, regardless of size or if third party data suggests it is not necessary

SOLUTION

• Implemented integrated STEP Solutions Platform

RESULTS

Reduction in business operation headcount and policy cost

• 25 underwriters (71% reduction)
• 200 call center service agents (33% increase for improved customer service)
• 60 tele-services support (54% reduction)
• 125,000 policies issued each year
• Term, Variable, Whole and Universal Life
• ~2000 captive agents – few active sales agents
• Average all-inclusive acquisition cost per policy issued: $625

Technology

• Integrated STEP Platform
• One system, SaaS operations, fully managed hosting
• Straight-through processing – 60% decisions in < 1 day

Process

• E-Apps, web-based submissions
• Medical risk assessment and initial risk assessment using rules base targets APS and Labs only when required
• External consumer databases for verification / risk assessment