Insurers that offer convenient, fast and low-cost customer service for life insurance applicants, through electronic applications and electronic issuance, are finding that the unit costs associated with handling new business are dropping enormously, as are the percentage of "Not in Good Order" rates and new business cycle time, according to “Understanding The Benefits Of Electronic Applications And Policy Issue,” a new report from Celent.
According to the report, the unit costs to handle new business dropped to $187 per application received, from $299, representing a 37 percent reduction; and per policy issued, from an application start point, unit costs fell to $233 from $940, a 75 percent reduction. The percentage of "Not in Good Order" (NIGO) rates dropped to 16 percent from 70 percent for term life; and whole life dropped to 19 percent from 70 percent.
Register or login for access to this item and much more
All Digital Insurance content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access