lidma- this is now! 2006

LIDMALIDMAThis is Now!This is Now!

Todd EwingChairman, LIDMA Process Improvement Committee

2 LIDMA 2006

This is Now. . .

Today, customers demand instant gratification

Faster Cheaper Better

3 LIDMA 2006

Here are our challenges:Here are our challenges: Consumers Are Still Confused Marketing Costs Have Skyrocketed More Compliance, Regulations & Paperwork More AOTA Decisions Slimmer Margins Difficult to find great Agents Too many Pipes and different Process flows

4 LIDMA 2006

Multiple client touches are needed before a case gets to the 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 Touches in Total!

5 LIDMA 2006

Even more touches are required to 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 Touches in Total!

6 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

7 LIDMA 2006

Numbers Don’t Lie 1,000 people go online every hour looking for life

insurance . . . approximately 100 actually submit a lead

Of these 100 who appear ready to get a policy …between 7 and 33 people actually procure coverage

Deduction: Of the 1,000 people who “thought” about life insurance . . . between 967 – 993

individuals potentially never get a policy!

8 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. All of the above!

Pick from the answers below

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

9 LIDMA 2006

The $40 Million Question…The $40 Million Question… How do we get all of these different Direct

Marketers, Carriers and Exam Companies to make the incremental improvements necessary to achieve our Return Rate and Placement Ratio goals?

Answer: Grab the low-hanging fruit and maintain laser focus on the 3 “Big Ticket” opportunities.

10 LIDMA 2006

Direct Marketers Potential Increase

Get 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% Contact customer before exam 2% - 10% 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%

Get Better with the BasicsGet Better with the Basics Practical Improvements for Direct Marketers,

Carriers and Exam Companies to Increase App Return Rate

11 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% Bring extra copy of application 2% - 4% Better/more consistent reporting and analysis 2% - 5%

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

12 LIDMA 2006

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

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

Results in More Applications Submitted

13 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% Automatic policy up-sell and

anniversary year offers More Premium!

Help Us Help YouPractical Improvements for Direct Marketers and

Carriers to Increase Placement Ratio

14 LIDMA 2006

Direct Marketers Potential Increase Write clean business/right carrier to reduce AOTAs 3% - 5% Employ touch-points strategy throughout process 2% - 4% Train/coach case managers for better sales support 2% - 5% Monitor and coach AOTA calls by agent 2% - 5% Establish concierge team for high premium cases 2% - 5% Detailed metrics, reporting and data mining 2% - 5% Vigilant DEL REQ follow-up (no $ vs. $) 3% - 10% Aggressive case management: older and APS cases 2% - 6% Commitment to reduce cycle time! 3% - 5%

Issued Ain’t Paid:Increase Placement Ratio

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

15 LIDMA 2006

Changing the Paradigm

Need to Accomplish these 3 Key Initiatives:

1. Electronic Signature/Voice Signature

2. Credit Cards: Acceptance up-front, at

policy delivery and on-going

3. Electronic Policy Delivery, including

Delivery Requirements

16 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

17 LIDMA 2006

Make it Happen…Make a Difference…Make More Money

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

LIDMA Leadership: We will work to have a standardized reporting system in place and available to all members by the end of this year.

LIDMA Members: Improving cycle time, return rates and placement ratios help everyone. Got answers? Share the love…

lidma- this is now! 2006

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