Data quality issues help explain why most carriers struggle with new business unit costs.
The struggle to reduce costs and to improve new business efficiency continues to vex carriers. One reason is the industry’s continued reliance on paper applications.
“The tools exist today to address this issue,” says senior analyst Craig Weber, author of the latest Celent report, Raising the Bar: Tools and Tactics to Drive Life New Business Efficiency. “But tradition still trumps innovation in life insurance new business. So many carriers are mired in inefficient processes that have remained unchanged for decades.� Weber notes that carriers with e-applications can leverage higher data quality throughout the new business process, which makes the process more efficient for carriers, agents, and customers.
The 33-page report is based on a Celent benchmarking exercise that examines data provided by 11 prominent life insurance carriers. The report reveals the tactics and strategies used by carriers within their new business departments. A companion report, Setting the Bar: Key Metrics in Life New Business, January 2007, discusses metrics such as budget per insurance application received and per policy issued, staff productivity, average staff costs by position, average new business cycle time, and more.
A table of Contents is available online.
Celent’s service offering falls into two categories, consulting and research, each of which is dedicated to technology in the financial services industry. We help banks, brokerage firms and insurance companies use IT to enter new markets in the shortest possible timeframes. All of our services are geared towards facilitating better informed, faster decision making. For more information visit www.celent.com.