CLIENT PARTNERSHIP CONFERENCE

Transcription

1 The On-Demand Software Exchange CLIENT PARTNERSHIP CONFERENCE Michael Slades Sladek VP, Sales EbixExchange and Ebix CRM

2 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; th 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

3 CRM Synergies Controlling the Desktop SmartExchange The Compelling Value Proposition 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 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

4 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

5 Adoption WinFlex 33 Carriers WinFlex Web users 55,000+ users AnnuityNet 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

6 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

7 LIFESpeed

8 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

9 Life Insurance Transaction Order-entry 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

10 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

11 License & Appointment Checks Utilize any signature technology Wet signature E-signature Click Wrap Voice Signature Integration with Electronic Payment Services LifeSpeed Features -continued

12 LifeSpeed eticket Process Producer Agent Insurance Agent Agency Agent Carrier Tele-or Platform Product Management 3 Interview party Platform System Bank Platform Wirehouse Bank Platform Platform Wirehouse BGA Website Platform Direct Marketer BGA Website Site Direct Marketer Carrier Website All have access to LifeSpeed Agent Authentication Agent VitalTerm Validation or Winflex Multi-Carrier Quote Or Illustration Submit Order Case Status View Case Management PTA Prefill Case from Status Quote or illustration Agent Management Best time to call All data verified L&A check Client Interview Fillable Forms Pre-app routed Call Reflexive center f/u No Questioning rekeying Status back Forms Electronic inc. Multiply Signatures options Paramed Medical 3 Service rd Party Carrier Provider Tele-Interview Exam Exams Labs Labs Requirements Carrier Carrier BGA Producer / Illustration Tele-Interview AMS or Carrier or Quote LifeSpeed Data Third Party New Business Policy Portal Authenticate platform Order (PRE -APP) eticket Order Routing Order&UWSystems Systems Submission Authenticate Illustrate Populate Integrate Never wait New Business New Business Processing Processing Call center

13 AnnuityNet

14 Adoption AnnuityNet 44 carriers AnnuityNet Over 200 distributors AnnuityNet 350,000 + users Annuity Premium Over 40 billion in New distributor customers in 2010

15 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

16 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

17 Market Benefits 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

18 Reporting & Compliance Sales performance data Customizable compliance questions and distributor compliance forms Instant compliance routing Supports audit preparation & defense

19 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

20 Distributor Clients 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 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

21 AnnuityNet Replacement Module ARM

22 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.

23 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.

24 Receiving Carrier Component 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. Workflow begins when the Carrier received a replacement request from the Distributor regardless of the delivery method. 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. 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.

25 Receiving Carrier Component

26 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.

27 Ceding Carrier Component

28 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

29 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, e- mails, etc) Increased number of In Good Order (IGO) replacement transactions sent to the carriers

30 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

31 Annuity Maintenance Platform Post Issue Transactions

32 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

33 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.

34 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.

35 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

36 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

37 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

38 Questions, Comments?

39 Data Exchange 2010 (DXO) Ken Leibow Vice President, Insurance Technologies & Custom Software Development

40 EbixExchange Products Support Straight Through Processing Producer & Distributor CRM & AMS SmartOffice Research & Illustration WinFlex & VitalSalesSuite eapp Submission LifeSpeed & AnnuityNet Manufacturer & Carrier 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

41 DXO Data Messages New Business Submission Requirement Ordering and Status Pending Case Status w/ Two-Way Messaging Licensing and Appointment Status ecommission Statements Inforce Policy Data Exchange

42 Data Exchange Straight Through Processing Insurance Carriers Insurance Distribution Third Party Administrators

43 LifeSpeed Winflex Web EbixExchange New Business Processing Client and Agent EbixExchange Pending Case Status eapp (Data & Forms) Life Carrier 1 SmartOffice Winflex Web In Good Order Life Carrier 2 Paramed Exam Order General Agent Life Carrier 3 Service Provider

44 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

45 Data Exchange 2010 Questions