The On-Demand Software Exchange

The On-Demand Software Exchange
CLIENT PARTNERSHIP
CONFERENCE
Michael “Slades” Sladek
VP, Sales EbixExchange and Ebix CRM
Ebix, Inc.
…is a division of…
 32 years as a leading international provider of software and ecommerce
solutions to the insurance industry
 21 offices worldwide; headquarters in Atlanta / USA; publicly-listed
NASDAQ: EBIX
 Market capitalization of over $500 Million; 2009 4th qtr revenue run rate
$100 million
 Providing technology and service solutions to Insurance Agents, Brokers,
Wholesalers, Primary and Reinsurance Carriers and other entities in more
than 52 countries on 6 continents
 Microsoft Gold Certified Partner; software development division CMMi
Level 5 certified and ISO 9001:2000 certified
 Goal: To be the leading backend powerhouse of the insurance industry
SmartExchange
CRM Synergies – “Controlling the Desktop”
The Compelling Value Proposition
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Smart Office: CRM and AMS - A single desktop in which to maintain client relationships, do
product research, run client illustrations, transact all insurance business electronically, submit all
policy data electronically to the carrier, send requirements ordering to providers, receive case
status messages from the carrier, track policy issuance and commissions and service the business
electronically post policy issuance.
Vital Sales Suite: Competitive Analysis – Just because a product is the lowest price does
not mean it is the best fit for the client. Carrier ratings are important to agents and clients as
well. Individually comparing carriers is difficult and time consuming. Online research tools allow
an agent to view competitive financial data for multiple carriers with just a few clicks.
WinFlex: Competitive Quoting – Agents and consumers want to be able to price compare
and ensure they are getting the best product for the money. An aggregated quoting tool allows
for the agent to pick from a list of top carriers and deliver the best product to their customer.
AnnuityNet & LifeSpeed: eApps - On average irregular apps (apps with errors) account for
40-60 percent of a carriers submitted applications. These not in good order apps cost the carrier
and distributors time and money – Electronic applications with checks and balances virtually
eliminate these issues.
SmartOffice: Electronic Data Exchanges - Redundant paperwork and paper submission
processes lead to rekeying data and increase cost of shipping and managing. Electronic
submissions and transactions reduce cost and improve accuracy.
AnnuityNet & LifeSpeed: Electronic Policy Delivery – Delivering a policy is costly and time
consuming. Carriers print, package and send policies to intermediary, intermediary sends to
agent who delivers to customer. Errors must be corrected and policy reprinted. Electronic Policy
Delivery solves this issue with instant delivery
On-Demand Insurance Solutions
EbixExchange * On-Demand
Industry Solutions
CRM
Research and
Illustration
eApp
AMS
Carrier
Platform
ePolicy
Delivery
SmartOffice CRM
VitalSales Suite & WinFlex
LifeSpeed & AnnuityNet
SmartOffice AMS
On-Demand Insurance Solutions
Adoption
• WinFlex
– 33 Carriers
– WinFlex Web users – 55,000+ users
• AnnuityNet
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43 carriers
214 distributors
Annuity Premium – Over 40 billion
350,000+ users
SmartOffice – 100,000+ users
Vital Signs - 101,362 users
Vital Term - 113,062 users
LifeSpeed – 10,000 applications per year
Why Ebix CRM and EbixExchange
• We know the financial vertical
• We are committed to the this space
• We are experts
– Top 5 execs at CRM and Exchange over 110 years
in Financial Services
• We promote and support STP
• SmartOffice was designed with financial
advisors in mind
LIFESpeed
Benefits of LifeSpeed
•Speed to Policy Issue
•Eliminate NIGO
•100% completion based on rules
•Reduce Processing Costs
•Expand distribution
•Increase app count
•Increase App/Premium Placement Ratio
Life Insurance Transaction Order-entry
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Fully automate the processing of life insurance sales (Any product type)
Standards-driven, rules-based, technology platform (TurboTax style)
Ticket, Informal/Trial Apps, Part A or Part A & B
Workflow can be tailored for any routing or distribution (BGA, Teleunderwriter, Carrier, AMS or Direct Marketer)
• Underwriting support through electronic feeds
• Reporting (Sales performance, Compliance)
• Import illustration data from WinFlex or other systems
LifeSpeed Features
• Straight Through Processing
(STP) technology that speeds,
ensures, supports agent sales
success
• Fool-proof application wizard
with reflexive questioning &
intuitive software screens (Turbo
Tax for Life Insurance Apps)
• Full product rules vetting &
validation
• Transaction data electronically
transmitted to carrier.
• Data mapped to PDF’s for
electronic submission
LifeSpeed Features -continued
• License & Appointment
Checks
• Utilize any signature
technology
• Wet signature
• E-signature
• Click Wrap
• Voice Signature
• Integration with Electronic
Payment Services
LifeSpeed eTicket Process
All have access to LifeSpeed
Agent
Producer
Agent
Insurance
Agent
Agency
Platform
Product
Management
Platform
System
Carrier
Tele-or
3rd party
Interview
Paramed
Medical
3rd Party
Service
Carrier
Provider
Carrier
Carrier
BGA
Producer /
Illustration
AMS or
Tele-Interview
Carrier
or Quote
Policy
LifeSpeed
Third Party
Data
New Business
Authenticate
Order
(PRE
-APP)
Order
Order&UW
Portal
platform
Systems
eTicket
Systems
Routing
Submission
Authenticate
Bank
Platform
Wirehouse
Bank Platform
Platform
Wirehouse
BGA Website
Platform
Direct Marketer
BGA Website
Site
Direct Marketer
Carrier Website
Agent
Illustrate
Authentication
VitalTerm
or
Agent
Validation
Winflex
Multi -Carrier
Quote
Or Illustration
Submit Order
Case Status View
PopulateClient InterviewIntegrate
Case Management
PTA
Prefill
from
Quote
Case Status
or illustration
Agent Management
Best time to call
All data verified
L&A check
Fillable Forms
Pre-app routed
Reflexive
Call
center f/u
No
rekeying
Questioning
Status back
Electronic
Forms
inc.
Multiply
options
Signatures
Tele-Interview
Exam
Exams
Labs
Labs
Requirements
Never wait
New Business
New Business
Processing
Processing
Call center
AnnuityNet
Adoption
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AnnuityNet – 44 carriers
AnnuityNet – Over 200 distributors
AnnuityNet – 350,000 + users
Annuity Premium – Over 40 billion in 2009
6 New distributor customers in 2010
AnnuityNet
• Straight Through Processing (STP) technology that speeds,
ensures, supports agent sales success
• Fool-proof application wizard; intuitive software screens
• Supports the most complex life and annuity products with full
product rules vetting
• Data mapped to PDF’s for electronic submission to imaging
systems
• SaaS: Hosted solution
• Additional support for L&A checks, commissions, compliance,
reporting hierarchies and e-signatures.
• Proven & Secure
Market Benefits
• Customizable Solutions
• Reduce or eliminate NIGO
• Replace paper forms with electronic application
process
• Faster process for the agent, distributor & carrier
• Intuitive wizard reduces training time
• Central hub for all transaction related activity
Market Benefits
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All policy data sent electronically to the carrier
No manual entry into back office systems
All forms available with data mapped for accuracy
Electronic signature capture
Compliance & suitability tracking
Case Status available in real time
Exchange for carriers-distributors-producers; plus
deploy to client website
Reporting & Compliance
• Sales performance data
• Customizable compliance questions and
distributor compliance forms
• Instant compliance routing
• Supports audit preparation & defense
AnnuityNet Carrier Partners
AEGON/Transamerica*+#
SunAmerica Annuity & Life Assurance Company*#
Allianz Life Insurance*
Allstate*
• Lincoln Benefit Life*
American National+
AVIVA (AmerUS Group)
AXA Equitable Life Insurance Company*#
First SunAmerica Life Insurance Company*
Genworth (GE Financial)*+#
Great American Life Insurance
Guardian Life*
Hartford *+
ING USA Annuity & Life Insurance Company*
Jackson National*
• Jackson National Life of NY
John Hancock (Manulife)*+#
Lincoln National Life*
MassMutual
Merrill Lynch Insurance Group
MetLife Investors*+#
• Travelers Life & Annuity*+
Nationwide*+#
New York Life*+
Ohio National*
• National Security Life*
Pacific Life*#
Penn Mutual
Principal Financial Group
Protective Life*+
Prudential*#
• Allstate Variable*
• American Skandia
RiverSource* (American Express/Ameriprise)
Securian (Minnesota Life)
Sun Life Financial*
Symetra Financial
Western National Life Insurance Company*
Western-Southern Life
• Integrity Life
*Denotes a Tier 2 carrier / +Denotes an Immediate Annuity carrier / # eSignature
Distributor Clients
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AEGON/Transamerica
BAIRD*
BancorpSouth
Broadridge Clearing
Clearview Securities
Edward Jones
Fidelity (NFS): 14 Distributors
First Clearing Corp
H & R Block/Ameriprise
Hawthorne Securities
Janney, Montgomery, Scott
Landmark Technologies
Merrill Lynch
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Morgan Keegan*
National City Bank
Pershing: 100 Distributors
Penson Financial
PrimeVest Financial
Scott & Stringfellow
Southwest Securities*
Sterne, Agee & Leach, Inc.
Stifel Nicolaus*
UBS Financial Services
Wachovia Securities*
Wachovia Bank*
WesBanco
* Denotes a Tier 2 Distributor
AnnuityNet Replacement Module
ARM
Basics of Automating Replacements
• The majority of current Fixed and Variable Annuity premiums represent
replacements of existing Annuities with new ones. Tracking the workflow
between the Receiving and Ceding (Delivering) Carrier has been a manual,
time-consuming process.
• EbixExchange will offer a product that services, tracks, and monitors
replacement activities for both the Receiving Carrier and the Ceding
Carrier, while keeping the Broker/Dealer informed of the Replacement
Request by providing an ongoing status through completion.
• DTCC acts as a centralized system where all transaction activity between
the Receiving Carrier and Delivering Carrier will pass through and be
validated by DTCC.
Replacement Platform Details
• EbixExchange will host the Replacement solution for carriers.
• Platform will be built using the .Net functionality.
• The Replacement solution will support the industry Attachments initiative
including images of wet signatures with a web service call to retrieve
Attachments.
• Image movement base system, storage optional
• Defined integration with Carrier workflow and imaging systems
• Automated inputs/outputs will be ACORD format.
Receiving Carrier Component
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The replacement transaction may be initiated on an order entry system such as
AnnuityNet, a carrier’s admin system, or a manual process. The receiving carrier
component will be flexible to receive the replacement contract information from a
variety of methods and formats.
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Workflow begins when the Carrier received a replacement request from the Distributor
regardless of the delivery method.
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Once it has been determined the transaction is in good order, the user will ”request”
the replacement from the delivering company. The platform will transmit the
replacement policy details to the delivering carrier by creating and transmitting a
Replacement Processing Request (ACORD 127) message to DTCC and any necessary
documents via the Attachment message.
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When the message is validated by DTCC, it is transmitted to the Delivering Carrier. An
ACORD 1128 TXLife Replacement Processing Update message is sent to the Receiving
Carrier when the Delivering Carrier accepts the ACORD 127 message. Money
settlement will be triggered at this time.
Receiving Carrier Component
Delivering Carrier Component
• DTCC receives and validates the ACORD 127 message from the receiving
carrier and transmits the file to the Delivering Carrier requesting a
replacement. The Delivering component will accept the message and
transmit a Replacement Processing update message (TXLife 1128)
message to DTCC with an ongoing status until the policy is surrendered, at
which time a final 1128 message is transmitted.
• The Status page listing pending replacements will continue to be updated
as the delivering platform transmits 1128 messages and receives 127
messages. The user can setup to schedule a follow-up to automatically
generate based on the replacement status. If no activity occurs on the
pending request by the specified number of days, an automatic follow-up
will generate to alert the user.
• All transaction activity will be recorded in an audit log and notifications
will alert the user.
Ceding Carrier Component
Distributor Component
• To keep Distributors informed, the Pending Case Status
Notification is part of the Replacement process.
• The Distributor will be notified via an ACORD TXLife 1125
message of the current status of the Replacement request. It
will be automatically sent whenever the Receiving Carrier
receives a Replacement Processing Update (ACORD 1128)
message from the Delivering Carrier.
• Even if the Delivering Carrier is not participating in the
automated Replacement process, the Receiving Carrier will
still send Pending Case Status messages to the Distributor.
• The AnnuityNet platform will be enhanced to handle the
Benefits of ARM
• Reduced cost for development and maintenance of
Replacement Processing
• Leverage EbixExchange expertise in the automation
of carrier-to-carrier exchange processes
• Reduce processing costs and eliminate a lot of the
labor-intensive workflow needed to manually track
and manage replacements (less faxes, phone calls, emails, etc)
• Increased number of In Good Order (IGO)
replacement transactions sent to the carriers
Benefits of ARM
• Utilization of established EbixExchange and DTCC
connectivity to ensure privacy and security
• Increased levels of service to customers, distributors,
and other carriers
• Complete audit trail for all the steps within the
replacement process
• EbixExchange Reporting
Annuity Maintenance Platform
Post Issue Transactions
The greatest portion of Grand Total IT Expense is attributed to Customer
Service Total IT, 37.8%. The second largest investment in IT is for New
Business Total IT, 19.8%.
Copyright TCi Consulting & Research
What is the AMP
• A Software-a-a-Service (SaaS) that will allow
distribution to perform post issue transactions
on inforce annuities for arrangement and
account level updates.
• A module to the current AnnuityNet platform
that is integrated with the current GUI.
• A data and image transmitter between
distributor and carrier for post issue
transactions.
• A multi carrier GUI and SaaS.
Arrangement Update
• Includes the ability to setup new arrangements, update or stop an
arrangement
• Update the source and/or target funds along with
modifications to an arrangement
• Available Arrangement Updates:
– Dollar Cost Averaging | Special Dollar Cost Averaging
– Systematic Withdrawal
– Partial Withdrawal
– Automatic Payment
– Standing Allocation
– Fund Transfer
– Asset Allocation
– Asset Rebalancing
• All of these arrangements will require the client contract and demographic
information to be sent via the current PTA.
Account Level Updates
• Ability to change and update account level
changes
• Available Account level updates
– Brokerage Account Number changes
– Address
– Beneficiary
– Custodian ownership
– Rep changes
• Incorporate with ACATs/BIN Change when
available
Benefits of AMP
• A streamlined wizard flow complete with business rules
and contract level vetting
• Creation of a standardized, automated process for
distributors to monitor, track and supervise rep-initiated
maintenance transactions to comply with state and
federal regulatory requirements
• Integrate with current workflow to increased rep
experience
• Increased levels of service to customers and distributors
• Complete audit trail for all the steps within the process
• EbixExchange Reporting
• Increased number of In Good Order (IGO) maintenance
transactions sent to the carriers
Benefits of the EbixExchange AMP
• Reduced cost due to reduction in manual corrections
• Reduced cost for development and maintenance
• Leverage EbixExchange expertise in the automation of
B2B processes
• Eliminate the need to manually process and track
maintenance transaction
• Benefit from EbixExchange user group and AMT platform
enhancements to ensure a current system is inline with
industry needs
• Utilization of established EbixExchange, DTCC, and carrier
connectivity to ensure privacy and security
Questions, Comments?
Data Exchange 2010
(DXO)
Ken Leibow
Vice President, Insurance Technologies
& Custom Software Development
EbixExchange Products Support
Straight Through Processing
Producer &
Distributor
SmartOffice
Research
& Illustration
WinFlex &
VitalSalesSuite
eApp Submission
LifeSpeed &
AnnuityNet
I n s u r a n c e & I n v e s t m e n t
D a t a D e l i v e r y & e P o l i c y D e l i v e r y
Manufacturer &
Carrier
CRM
& AMS
DXO Data Messages
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New Business Submission
Requirement Ordering and Status
Pending Case Status w/ Two-Way Messaging
Licensing and Appointment Status
eCommission Statements
Inforce Policy Data Exchange
Data Exchange
Straight Through Processing
Insurance Carriers
Insurance Distribution
Third Party Administrators
LifeSpeed
Winflex Web
EbixExchange
New Business Processing
Life Carrier 1
Client and Agent
EbixExchange
Pending Case Status
eApp (Data & Forms)
In Good Order
SmartOffice
Winflex Web
Life Carrier 2
Paramed Exam Order
General Agent
Life Carrier 3
Service Provider
DXO Benefits
Increased speed-to-issue time
Improved accuracy and completeness of data
Eliminated redundancy in data entry
Reduced processing time by an average of two – five days
Reduced underwriting costs
Increased placement ratios
Elimination of need to maintain disparate data feeds to multiple
vendors, partners and distributors
– Aggregated data in one place
– Auto-Reconciliation of Commissions
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Data Exchange 2010
Questions