The Annuity Industry’s Artistic Awakening
During the Renaissance, annuities weren’t considered annuities. But, they acted like annuities do today. They were important for supporting the arts and sciences. Famous thinkers like Leonardo da Vinci relied on money from patrons. The patrons paid them regularly, like how annuities make payments over time.
In many ways, the annuity industry is now going through its own digital renaissance. A transformative period much like the historical Renaissance marked the transition from the Middle Ages to the modern era. This digital renaissance represents a shift in the industry. It moves from traditional, manual processes to a new age of technological innovation. Cutting-edge platforms enable this digital transformation. Paper applications have a not-in-good-order rate of 60% on average. Modern sales automation platforms are reducing that rate to as low as 4-10%. This speeds up processing times and gets contracts issued faster.
Suitability Workflows: A Masterpiece of Compliance
Just as the Renaissance brought new ways of thinking, suitability workflows bring a fresh approach to following complex regulations. Changing regulations like the Department of Labor’s fiduciary rule can be hard to keep up with. But, they don’t have to be. Suitability workflows make it easier for advisors to stay in compliance. They provide a clear audit trail of when advisors act in their clients’ best interests.
The workflows guide advisors to collect the right client information. This ensures the recommended product truly fits the client’s needs.
This eliminates the need for IMOs and BGAs to go to individual carrier sites to submit business. Self-service tools also let distributors customize forms to meet their specific needs.
The Art of the API: Painting a Picture of Success
The Renaissance marked a time of incredible progress in the arts and sciences. The annuity industry is reaching new heights with its digital transformation. Insurers who embrace this exciting period of innovation gain major competitive advantages. They drive success to respond to changing market demands. They deliver value to all stakeholders. Modern platforms use APIs to deliver a digital sales experience from start to finish. Distributors and carriers using these solutions have slashed error rates.
They’ve cut contract delivery times in half or more, and boosted annuity sales by 20%. The most successful carriers embed digital capabilities deep in their business models. They create enterprise-wide digital strategies and implement them at scale across the business. This generates breakthrough performance. Gains both through increased efficiency and via richer agent and customer experiences.
Digital Renaissance Horizon
Realizing the full potential of digital requires more than the latest technologies. Insurers must nurture a culture of innovation. They need to attract digital talent. Insurers must be open to experimenting and learn quickly.
Digital transformation in the annuity space is about playing offense, not defense. Carriers must invest to keep up with rising customer expectations and new competitors. Proactive innovation opens new avenues for growth. Insurers who reimagine their business for the digital age position themselves to thrive well into the future.
The annuity industry’s digital renaissance has only begun. Huge opportunities await carriers willing to embrace change and relentlessly innovate.
