Carrier’s Acquisition Cost Reduced by 55% with STEP Straight-Through Processing
A large enterprise carrier with four-generations of complex legacy systems sees a better than 55% reduction in acquisition cost when STEP Solutions fully managed, straight-through processing platform is implemented. Prior to implementation, the carrier used a highly manual, paper based system with high overhead. The carrier’s average cost was $1400 per policy. Following STEP implementation, the carrier saw a dramatic reduction in business operation headcount and policy costs dropped to an average of $625 for all-inclusive acquisition cost per policy. The number of underwriters was reduced by 71% and tele-services support was reduced by 54%. With STEP straight-through processing, 60% of the carrier’s underwriting decisions were made in less than 1 day. Review our full case study results.