Improving the process has been a major goal of LIDMA since its inception. The LIDMA Process Improvement Team has successfully identified several opportunities to both increase overall industry paid premium and drive efficiencies and cost savings within the supply chain. Adoption of the LIDMA eProcess can drive a significant benefit for the industry by:
- Increasing application volume
- Increasing DM revenue
- Improving placement ratios
- Reducing touch-points and cycle time by weeks
- Increasing “In Good Order” application rates
- Increasing conversion metrics for all LIDMA members
- Decreasing acquisition and administrative costs
- Improving the customer experience
Cost Benefit Analysis Tool
LIDMA Releases FREE Cost Benefit Analysis Tool for High Performing Agencies on benefits of automation. Our Process Improvement initiative teams have worked with leading direct marketing agencies that have reviewed, tested and endorsed this Cost Benefit Analysis (CBA) tool. The easy-to-use tool allows you to input your agency's basis volume data and allows variables to be customized. The CBA tool 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 tool, Jeff McCauley, LIDMA Treasurer 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!"