(What a life carrier can expect to save annually using an underwriting system that automates a portion of decisions.)Number Reduction Savings

Support staff 11 80%(9 FTEs) $346,667

Underwriters 33 40%(13 FTEs) $866,667

Attending physician statement 12,000 5%(600) $45,000

Paramedical/lab tests 28,000 5%(1,400) $105,000

Total savings $1,363,334

Assumptions: 40,000 policies issued per year; 3,600 policies per support person and 1,200 policies per underwriter per year; average salary and benefit costs per FTE for underwriting and support of $65,000 and $39,000 respectively; APS and paramedical lab fees of $75 per case; 30% of all issues requiring APS, and 70% requiring paramedical/lab.

Source: Celent Communications Inc.

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