The future of life and annuity is automated

This post is part of a series sponsored by Actentsync.

In a complex and evolving life and world of annuity (L&A) compliance, efficiency is not a luxury, a key factor in organizational success. One of the most overlooked but most important components of contract signing is contract request management. Without an integrated system to manage this process, the carrier will face unnecessary delays, increased administrative costs, and operational risks, which hinder the ability to effectively formulate policies and scales.

Bottlenecks in contract request management

For many L&A carriers, the producer contract request process is plagued by inefficiency and disconnection of data. Operators must manage contract requests for multiple agencies, each using different formats and delivery methods, from email and paper forms to third-party subscription services such as Surelc and DTCC LNA. Although some carriers have established their own contract request portal, this can be labor-intensive and maintenance-intensive. Ultimately, this split leads to:

• Data silo: Inconsistent formats and multiple intake methods create disconnected systems, increasing the likelihood of errors and rework.
• Manual workload: Employees spend a lot of time reformatting and verifying producer data, thus slowing down the entire onboarding process.
• Compliance risks: Incomplete or incorrect data can increase regulatory risks, leaving operators with penalties or delays when appointing producers.

These inefficiencies not only frustrate carriers, but also directly affect revenue. When a producer falls into the boarding rather than actively selling, it averages A written premium loss for each producer of $3,000 per day. Needless to say, this adds up when you run it on a massive scale!

Case Study of Comprehensive Contract Request Automation

Operators looking to optimize their onboarding process must consider the impact of integrating contract request services into their distribution management strategies. Modern contract request integration should ingest data from common sources such as Surelc and DTCC to provide the following:

• A standardized air intake process: Incorporating producer data into standardization across multiple sources, eliminating the need for manual intervention and reducing latency and errors.
• Automatic compliance check: Ensure that producer data is completed and meet regulatory requirements before submitting to prevent expensive round-trip.
• Faster approval and appointment: With structured and verified data, operators can quickly process contract requests, greatly reducing the time it takes for manufacturers to prepare for sale.

Business impact of faster producer onboarding

A more efficient contract request process not only benefits internal teams, but also directly contributes to business growth. Industry data shows that reducing the delay in producer entry can:

• Increase written premium: The faster the producers on board, the sooner they generate income.
• Reduce operating costs (and the risk of human error): Reducing manual processing time and dual data input have a direct impact on the bottom line
• Improve producer retention: A simplified experience makes it easier for manufacturers to work with operators, reduce stirring and strengthen partnerships.

Key considerations for choosing the right contract request service

When choosing a contract request solution, operators should look for functions that directly solve industry pain points:

• Data processing is impossible: The ability to handle multiple contract request sources (such as DTCC LNA and Surelc) is critical to efficiency without manual reformatting.
• Seamless system integration: Contract request solutions should standardize the data obtained from these services and integrate with your existing distribution channel management system, so the data is just….
• Scalability without interruption: As operators develop, their onboarding and contract management processes must be able to expand accordingly without increasing unnecessary operational burdens.

The future of life and annuity distribution management

With the continuous development of the insurance industry, the demand for integrated automatic contract request services will only increase. Operators embracing automation and seamless integration will be positioned as onboard producers, reducing costs and maintaining a competitive edge in a rapidly changing landscape.

By eliminating bottlenecks and improving data accuracy, operators can turn their producer onboarding processes into strategic advantages – not only ensuring compliance, but also accelerating growth and strengthening relationships with distribution partners.

Control your contract request process

The outdated manual contract request process is slowing down life and annuity carriers, resulting in delays, inefficiency and loss of income. By integrating contract request automation with Aptentsync Manage, you can easily standardize data, eliminate bottlenecks and accelerate producer acceleration.

Don’t let inefficient processes stop your business. See how Admentync Management and Contract Request Service (CRS) optimizes your distribution strategy.

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