ACORD, the standards body for the insurance industry, has announced a standardised life insurance application to help improve efficiency and accuracy for carriers and distributors.
The form has been approved by the Interstate Insurance Compact for pre-filing in 47 jurisdictions, making it the first of its kind.
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Furthermore, the application will improve customer experience, streamline underwriting, and accelerate regulatory approvals. Customers and distributors will now be able to apply for a policy from any participating life insurers using a single, industry-standard form.
This application was the result of a long-term collaboration between ACORD, life insurance distributors and carriers, and the Interstate Insurance Compact. It was designed with a digital-first approach to eliminate common industry problems, from customer frustration to time-intensive manual review and approval processes.
Questions on the application were made to reduce bias and lessen customer frustrations. Also, the questions focus on information that is readily available to customers and most relevant to underwriting decisions.
“Standardising the data collection process is a critical first step in enabling next-generation digitalised underwriting,” said ACORD CEO Bill Pieroni. “Providing a standard data structure from the outset of the application process directly leads to more efficient use of data across the value chain – from enabling automated screening by underwriting rules engines, to creating a more consistent digital experience for customers shopping for the most suitable policy.”
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By GlobalData“A standard life application will greatly simplify the producer’s role and the client’s experience, especially when they are applying for multiple policies,” said ACORD Standards Project Group Chair Andy Kramer (VP Underwriting Risk and Innovation, M Financial Group). “The producer can more accurately describe the questions that will be asked and avoid missing questions that will delay the underwriting and approval process. It should also greatly reduce the implementation and ongoing maintenance costs incurred by carriers once this application is enabled in the application platforms.”
