New Technology in Operations

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New Technology in Operations
Session 39 February 28, 2006Session
Producer Gray Miller, Vice President Geriatric
Care Services Long Term Care Group, Inc.
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Agenda

• Speaker introductions
• Marketplace trends
• End consumer topics
• Customer Service on the Internet
• Cross product billing and collection
• On Line Apps
• Internet Illustrations
• E Intent to Buy
• Carrier/Home office topics
• E Underwriting
• Data management

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PANEL

• Pete Petersen, Director DI/LTC, Northwestern
  Mutual Life Insurance Company
• Robert Bocompani, Director Business Technology,
  Met Life
• Bruce Baude, CEO, Long Term Care Group , Inc.

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Trends in the LTC Marketplace

• Younger buyer
• Distribution shifting
• Fewer kitchen table sales
• Workplace offerings on the rise
• Buyer more internet savvy
• Requirement on ease of doing business

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Technology Offerings are Broad

• IVR
• e-signature
• Internet quoting
• On line quote comparisons
• On line agent servicing

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Pete PetersenDirector, DI/LTCINorthwestern
Mutual
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Customer Service on the Internet

• Business Driver
• Easy access to info 24x7 for the customer
• Routine service off-loaded from Agent
• CSI at Northwestern Mutual
• View policy info (values, loans, billing info)
• Agent contact info website link
• Automated and immediate enrollment

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Customer Service on the Internet (contd)

• Designed as a complement to the agents service
  to his/her client
• Fits our corporate strategy
• How does this compare to what we understand other
  companies are doing?

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Billing and Collection across products
(Insurance Service Account)

• Business Driver
• Consolidated billing is convenient for customer
• Agents sales process enabled by money
  management services
• Rich functionality available under the ISA
  umbrella of services

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Billing and Collection across products
(Insurance Service Account) (contd)

• Integration with other administrative functions
  beyond pure billing and collection.
• Future of money management at Northwestern Mutual
• Strategic point of differentiation for our
  company (and our agents)

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Agent customer data management (The Network
Connection)

• Business Driver
• Easy for agent to manage existing clients and
  cross-sell to them
• Built upon time-tested prospecting, needs
  analysis, and sales processes of Northwestern
  agents.

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Agent customer data management (The Network
Connection) (contd)

• Ties together all field systems that provide
  client information or support an agents client
  interaction.
• In progress system that still has some challenges
  to overcome
• Matches our value proposition in the markets
  where we compete

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• Rob Bocompani
• Director, Business Technology

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New Technologies in Operations

• Utilizing eSignature for LTC
• The Future of eSignature
• Overview of MetLifes Illustration Systems
• Pros and Cons of Desktop vs. Online
• The Future of Illustration Systems

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Utilizing eSignature for LTC

• Employer Group Channel
• eSignature in group marketplace
• Drive to online channel
• High percentage enroll online (guaranteed issue)
• eSignature Pilot
• Full underwritten apps online with eSignature
• Real-time authentication
• 100 electronic
• Drive to online channel
• Back Office Transformation at MetLife
• Shift from paper to electronic
• Streamline back office processes

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Utilizing eSignature for LTC (contd)

• Business Drivers
• Increase participation
• Leverage existing technology
• Reduce expenses
• Reduce cycle time
• Make easier for consumer

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The Future of eSignature

• Leverage Technology in Individual Marketplace
• Intent to buy systems
• Multi-Life enrollments
• Mixture of online/offline tools to help make sale
• Challenges Ahead
• Authentication of individuals
• Adoption of eSignatures by medical community

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Overview of MetLifes Illustration Systems

• Overview of Current Technology
• MetWins
• Online Illustrations
• Decision support tools
• Pros and Cons of Desktop vs. Online
• The Future of Illustrations Systems

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Pros and Cons of Desktop vs. Online

• Desktop Software
• Pros
• Can be used off-line
• Faster processing of files
• Will run as fast as PC speed
• Cons
• Software loading restrictions
• Installation issues
• Dissemination of updates is slower, not as
  controlled
• Version control

• Online Quoting
• Pros
• Takes advantage of the latest web features
• Immediate version control
• No special software to install
• Cons
• Must have internet connectivity
• Speed of connection will dictate speed of
  generating illustrations

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The Future of Illustration Systems

• Single rules-based quoting engine supporting
  desktop and online illustration systems
• Thin client vs. thick
• Improved version control (compliance, bug fixes,
  enhancements, new product release, etc.)
• Enhanced decision support tools
• Intent to buy with eSignature

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Electronic Underwriting Promise Pitfalls

• Bruce Baude
• CEO
• Long Term Care Group

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Electronic Underwriting Potential Scope

• Automation of some or all aspects of the
  underwriting process, beginning with applicant
  data capture and continuing through decision
  notification

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Electronic Underwriting Why Pursue

• Underwriting operations are typically manually
  intensive. By automating, providers seek to
• Improve Quality consistency accuracy
• Improve Efficiency reduced turnaround time
• Enhance Management metrics reporting
• Reduce Costs resulting from improved quality and
  efficiency

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Electronic Underwriting Baseline Analysis

• Analyze historical underwriting data and current
  processes
• Examine frequency, cost and complexity of
  decision types, including
• Approve vs. Decline
• Application-only
• Face-to-face assessment
• Telephonic assessment
• Attending physician statement

Impact
Low High
Low High
Ease
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Electronic Underwriting Identify Automation
Candidates

• Define threshold minimums for automating
  processes (minimum cost and quality gains)
• Focus on high frequency, high cost processes
• Validate feasibility of process automation
• Required data is available in appropriate format
• Systems can support or be modified to support
• Quality/turnaround times significantly improve

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Electronic Underwriting Identify Automation
Candidates (contd)

• Determine current process costs
• Estimate automated process costs
• Estimate costs to implement automation
  capabilities
• Prioritize process automation candidates that
  meet threshold minimums

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Electronic Underwriting Most Likely Candidates

• Ordering Risk Management Information (RMI)
  requests
• System capture of RMI data in standardized code
  formats
• Approve/Decline of less complex decisions
• Routing of applications for review/approval by
  appropriately skilled staff
• Generating decision notification letters to
  agents and/or applicants

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Electronic Underwriting Risk Management

• Conservatively estimate automated process costs
• Start with less complex processes
• Determine if a process automation requires other
  processes to be automated first
• Carefully introduce a newly automated process and
  institute stringent ongoing QA and Audit
  capabilities
• Avoid over-automating complex processes
  automate the simple tasks to make the required
  human decisions more efficient

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Electronic Underwriting Summary

• Develop an accurate baseline for current process
  performance and costs
• Many automation opportunities will require
  process re-engineering
• Systems changes may be broad
• Automating complex decision-making may result in
  higher costs and lower quality

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QA