lidma this is now! 2006

LIDMA 2006LIDMA 2006

“This is Now!”“This is Now!”

Todd EwingChairman, LIDMA Process Improvement Committee

2 LIDMA 2006

We’ve Come a Long way…We’ve Come a Long way…

10 years ago we had:10 years ago we had:

No InternetNo Internet No emailNo email No dialersNo dialers We used DOS, faxes and licked stampsWe used DOS, faxes and licked stamps Rate cards were the RageRate cards were the Rage Needed to be a genius to quote accurately Needed to be a genius to quote accurately Yet…We still wrote thousands of apps! Yet…We still wrote thousands of apps!

3 LIDMA 2006

This is Now. . .

Today, we have cool technology and customers demand instant gratification

Faster Cheaper Better

4 LIDMA 2006

Current Challenges:Current Challenges: The buying Process is Brutal Cycle Times are crazy long Consumers still don’t complete the exam The overall Conversion rates are slipping Marketing Costs Have Skyrocketed More AOTA Decisions Slimmer Margins Too many Pipes and different Process flows

5 LIDMA 2006

What’s Takes Longer?What’s Takes Longer?

Planning a Wedding?Planning a Wedding? Building a House?Building a House? Running 500 Boston Marathons?Running 500 Boston Marathons? Pregnancy?Pregnancy? Getting a Life Insurance Policy?Getting a Life Insurance Policy?

6 LIDMA 2006

Steps DM’s take to get an App to Carrier

Lead Delivery 0 auto-DW emailLead Delivery 0-1 Agent phoneLead Delivery 1-2 Agent phoneLead Delivery 2 auto-DW emailLead Delivery 3 auto-DW emailLead Delivery 4-5 Agent phoneLead Delivery 7 outreach phoneLead Delivery 14 outreach phone

Lead Delivery 28 auto-DWAged Lead

#1 email


#2 email


Final email

CRI 0 AgentConfirmatio

n emailCRI 0-1 Fulfillment App Pkg letter

CRI 1 auto-DWCRI - Day 1_sig.doc letter

CRI 0-5 Examiner phoneApp to PI 7 auto-AW CRI + 7 email


CRI 10 CM phone


CRI 21 CM phoneApp to PI 21 auto-AW CRI + 21 email

CRI 31 CM phoneApp to PI 31 auto-AW CRI + 31 emailApp to PI 45 auto-AW CRI + 45 email

Exam Date -1 outreach Exam Rmdr phoneExam Complete 1 QAS Script #1 phoneExam Complete 8 QAS Script #2 phoneExam Complete 8 QAS Exam + 8 email

Exam Complete 10 auto-DWExam - Day

10.doc letterExam Complete 21 QAS Script #3 phoneExam Complete 21 QAS Exam + 21 email

Exam Complete 28 auto-DWExam _ Day

28.doc letterExam Complete 31 QAS Script Final phoneExam Complete 31 QAS Exam + 31 emailExam Complete TBD auto-DW Exam_Final email

ARH-On 0 Fulfillment phoneARH-On 0-3 CM phoneARH-On weekly CM phone

ARH-On 0-21 CMARH -

Missing Info email

ARH-On 14 Fulfillment

ARH - Critical - Return $ email

ARX-On 0 Fulfillment phoneARX-On 0-21 Agent phoneARX

New

CRI/Paramed Incomplete

CRI/Paramed Complete

ARH/ARM

43 Touch Points!

7 LIDMA 2006

Steps neededto place a policy Inforce

ARS Submitted 0 auto-AW ARS + 0 emailSubmitted 0 Fulfillment Rtn Prem - TIA ineligible letterSubmitted 0 Fulfillment Rtn Prem - Payee error letterSubmitted 0-x CM ARS - No O/S Reqs emailSubmitted 0-x CM ARS - O/S APS emailSubmitted 0-x CM ARS - O/S Info Reqd emailSubmitted 0-x CM ARS - Call Me emailSubmitted 17 auto-AW ARS + 17 emailSubmitted 21 CM phoneSubmitted 31 CM phoneSubmitted 41 CM phoneSubmitted weekly CM phone

Approved Approved 0 auto-AW Approved + 0 emailAOTA AOTA 0 Agent AOTA Contact #1 email

AOTA 5 Agent AOTA Contact #2 emailAOTA 10 Agent AOTA Contact #3 emailAOTA 21 Agent AOTA Contact Final emailAOTA 0-x Agent AOTA - Confirm Accepted emailAOTA 0-x Agent AOTA - Confirm Rejected email

Closed/Declined Declined 0 Carrier letterDeclined TBD Agent telephone

DEL Policy Mailed 0 auto-AW emailPolicy Mailed 0 FulfillmentDEL - No Reqs ("inforce") letterPolicy Mailed 0 Fulfillment DEL - Forms Only letterPolicy Mailed 0 Fulfillment DEL - Money Only letterPolicy Mailed 0 Fulfillment DEL - Money & Forms letterPolicy Mailed 4 auto-DW DEL - Day 4_sig.doc letterPolicy Mailed 7 CM telephonePolicy Mailed 7 auto-AW emailPolicy Mailed 11 auto-DW DEL - Day 11_sig.doc letterPolicy Mailed weekly CM telephonePolicy Mailed 21 auto-DW DEL - Day 21_sig.doc letter

INF Inforce 0-x CM Inforce Confirmation emailInforce 21 letterInforce 90 emailInforce 365 email

Cancelled Cancelled 0 system letter0 auto-AW email

38 More Touch Points!

8 LIDMA 2006

Conversion Measurement Success Ratios Leads – App Out % 40% - 75% App Out – Exam Done % 45% - 70% Exam Done – App Back % 85% - 95% App Back – App to Carrier %90% - 95% App to Carrier – Policy Approved % 80% - 90% Policy Approved – Policy Delivered % 85% - 95% Policy Delivered – Policy Paid % 80% - 93%

Total Net Conversion: 7% - 33%

Breakage!Breakage! 7 Critical Conversion Drop-off Metrics7 Critical Conversion Drop-off Metrics

9 LIDMA 2006

Numbers Don’t Lie Approximately 1,000 people go online every hour

looking for life insurance . . . about 100 actually submit a lead

Of these 100 who raised their hands looking to secure coverage …between 7 - 33 people actually get a policy

Conclusion: Of the 1,000 people who “thought” of life insurance, between 967 – 993 poor souls…never get a policy!

10 LIDMA 2006

QuizQuiz

A. Wahoo! We’ve got serious upside!B. Get me off this planet! We have

major problems!C. If it weren’t for the customers and

employees, this would be a great business!

D. Mom was right- Why didn’t I get into Computers?

Pick from the answers below

What do these numbers tell us?What do these numbers tell us?

11 LIDMA 2006

The The $400 Million$400 Million Question… Question…

How do we improve the Process and significantly increase our Return Rates & Placement Ratios?

Hint: It’s incremental and we’re all involved

12 LIDMA 2006

Direct Marketers Potential Increase Get stronger commitment from customer 5% - 20% Use credit card for all binders 3% - 15% Set better expectations of next steps 2% - 10% Handle objections upfront (particularly exams) 5% - 15% Employ strong touch-points strategy 5% - 15% Better, simpler app instruction & packaging 2% - 5% Segment leads by agent specialty and data mining 3% - 10% Monitor, audit and coach agent presentations 5% - 20% Follow-up with Cancels -- not dead yet 3% - 8%

Crazy idea: Use e-power and totally get rid of paper apps!

Get Better with the BasicsGet Better with the Basics Practical Improvements for DM’s, Carriers &

Exam Companies to Increase App Return Rate

13 LIDMA 2006

Exam Companies Potential Increase Give agents ability to instantly schedule exam 3% - 15% Use zip code locator for local offices 3% - 5% Immediate notification when customer cancels 2% - 10% Provide deeper disposition for cancel reasons 2% - 10% State the name of agent/agency when calling 4% - 10% Ongoing monitoring/coaching of examiner calls 5% - 10% Call the customer sooner and more often 3% - 10% Incentive for examiner to increase app pick-up rate 5% - 10% Better/more consistent reporting and analysis 2% - 5%

Crazy idea: Come up with U/W system to replace Fluids!

Better with the Basics, II A Deeper Partnership to Increase App Return Rate

14 LIDMA 2006

Carriers Potential Increase Electronic signature/voice signature 10% - 25% Easier, shorter applications 10% - 15% Accept credit cards for initial and ongoing premiums 5% - 15% Marketing material specific to DM model 3% - 10% Co-branding upfront to cement relationship 4% - 10% Endorsement follow-up letter from Carrier 3% - 10% Ongoing underwriting seminars (real case studies) 2% - 6% Promotional CD explaining the app and process 2% - 5%

Crazy idea: Process all low premium without an Agent!

Better with the Basics, III Increased Focus on the Top of the Funnel

Results in More Applications Submitted

15 LIDMA 2006

Carriers Potential Increase Create a customer website for status updates 2% - 4% Dramatically reduce DEL REQ with policy 4% - 10% Offer guaranteed issue for all Declinations 2% - 4% Better policy packaging and DEL REQ letter 2% - 4% Electronic policy delivery 4% - 10% Accept/charge credit card at DEL REQ 3% - 6% Reduce cycle time; true “jet issue” 2% - 5% Better reporting/data mining for APS, AOTA, DEL 2% - 4%

Crazy idea: Automatic policy up-sell & end of term offer!

Help Us Help YouPractical Improvements for Direct Marketers and

Carriers to Increase Placement Ratio

16 LIDMA 2006

Direct Marketers Potential Increase Write clean business to reduce AOTAs 3% - 10% Employ touch-points strategy throughout process 2% - 8% Train/coach CM’s for better sales support 2% - 5% Create Mentor program to increase app out % 2% - 6% Establish concierge team for high premium cases 2% - 5% Vigilant DEL REQ follow-up (no $ vs. $) 3% - 5% Commitment to electronic processing 5% - 10%

Crazy Idea: Policy Owner Marketing will be answer to Leads

Issued Ain’t Paid:Increase Placement Ratio

“You don’t punt at the opponent’s 1-yard line!” ~TRE

17 LIDMA 2006

The Big 3Future is Now with these Key Initiatives:

1. Electronic Signature/Voice Signature

2. Credit Cards: Acceptance up-front, at

policy delivery & on-going

3. Electronic Policy Delivery, including

Delivery Requirements

18 LIDMA 2006

Here are the 6 next steps:

Define an “owner” for each of the Big 3 initiatives

Each owner will develop a small advisory panel that represents DM’s, Exam Co’s and Carriers

Create an on-going forum to discuss objectives, strategies, implementation and standardization

Document solutions and submit recommendations to all LIDMA members

Test, measure, report and adjust

Provide resources for universal implementation

19 LIDMA 2006

Make it Happen…Make a Difference…Make More Money

OWNERS/ADVISORS: Need passionate, committed members who are willing to share, dedicate time/resources, & GET STUFF DONE!

All LIDMA Members: By improving cycle time, return rates & placement ratios-

Everyone Wins!

20 LIDMA 2006

Volunteers Wanted!Volunteers Wanted!

Please see me to participate in one of our Please see me to participate in one of our 3 key initiatives3 key initiatives

Thanks, Thanks, ToddTodd(916) 275-(916) 275-

78437843

lidma this is now! 2006

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