LIDMACBA

Life Insurance Direct Marketing Association (LIDMA) Releases Free Cost Benefit Analysis Tool For High Performing Agencies

The Life Insurance Direct Marketing Association (LIDMA) is pleased to announce the immediate availability of its new Cost Benefit Analysis (CBA) Tool in Excel, including eApp, eSignature and eDelivery assessments for high performing agencies.

"LIDMA has taken a leadership role in cultivating new technologies, processes and sales methods that benefit life insurance shoppers. LIDMA members and the life insurance industry as a whole," stated Jennifer Youngs, Chair of the Process Improvement Committee and Director of Sales and Administration at AGIA Life Insurance Central.

Youngs added, "Our Process Improvement initiative teams have worked with leading direct marketing agencies that have reviewed, tested and endorsed this CBA".

The easy-to-use tool allows inputting of your agency's basis volume data and allows variables to be customized. The CBA includes a sample paperless agency based on 1,000 submitted applications, a 70% placement rate and 100% commissionable percentage of premiums.

"Integrating eApp, eSig, and eDelivery decreases cycle time, reduces distributor costs, eliminates redos and increases placement ratios," commented development lead of the CBA, Jeff McCauley, LIDMA Vice President and President/COO of Paperless Solutions Group.

According to LIDMA, high volume life insurance agencies that take full advantage of available eProcess technologies can expect:

  • A 3-8% (5% avg.) net increase in placement rate (e.g., 70% to 73-78%)
  • An increased number of applications submitted in good order (IGO)
  • Savings in facilities and personnel costs via fewer case management touches
  • A  8-12% (10% average) savings as a result of reduced delivery requirements
  • A decrease in cycle time which will yield an increase in placed cases (Assumed 5% per day) = 14 days with e-App and 21 days with eApp and eSig

"The CBA has a flexible design that can be used to address e-processing using eApp only, or in combination with eSig as well as eDelivery processes," says McCauley. "Use the LIDMA CBA and find a way to improve your agency performance!"

Download the Free LIDMA Cost Benefit Analysis Tool.