Straight Through Processing – Infosys Whitepaper
Article Synopsis :
Limitations remain, but it looks like producer lifecycle management (PLM) may change the rules of the game.
“Straight Through Processing – Can this mantra make magic in producer lifecycle management?” by Infosys looks at standardizing and automating every stage of the PLM value chain. The paper also suggests steps by which this can be achieved.
Currently the PLM process is highly paper-intensive and exposed to challenges like low recruitment speeds, non-standard application forms (in life insurance particularly) for on-boarding, increased maintenance expenditures, and the absence of a proper PLM solution in the market to address the complexities of these issues.
The paper identifies ten steps in the PLM lifecycle:
- Candidate sourcing
- Background checks
- Continuing Education
- Change Management
- Termination / Retirement
It also idenitifies the following attributes of a ‘straight-through’ PLM solution:
- Workflow capabilities with real time notification to the appropriate parties
- Trolling of social media sites for potential candidates
- Electronic Signature for signing documents
- Electronic content management with automated document generation and automated check-in and check-out
- Automated Integration with back-end systems to ensure speedy data capture and the performance of background checks
- Business Rules Management System (BRMS) integration with effective translation of codes into plain sentences which can be managed by producers themselves
- Self-service capabilities with a user-friendly interface like a portal for producers, which will act as a single access point with personal profiles
A straight-through PLM solution improves the quality and efficiency of the producer lifecycle with reduced turnaround times for on-boarding, higher retention rates, and lower costs overall.
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Digital Insurer's CommentsWe’ve reviewed several articles on how digital technologies will displace producers, especially in the consumer insurance markets. This article focuses more on the now – specifically improving the process for acquiring and managing human producers.
With dire predictions around agent attrition rates, especially in the U.S. where as many as half of all licensed life insurance producers are expected to retire in the next five years, it’s tempting to make the jump to pure digital options.
Automating your PLM, improving acquisition and retention through better user experience, should not be overlooked as an efficacious middle way.
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