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StoneRiver Survey Reports Low Adoption of Point-of-Sale Decisioning

Staff Writer | August 11, 2014

In March, StoneRiver surveyed life carriers in the U.S. to determine the current level of point-of-sale decisioning (POSD) implementation across carriers, the appetite for POSD, and the varied approaches and methodologies used. POSD enables faster underwriting decisions so agents can tell prospective insureds whether their application has been accepted at the point of sale.

Components within the POSD process include sales illustration/needs analysis, electronic applications, and automated underwriting (AUS). Forty percent of respondents have some POSD technology currently implemented, however, only eight percent had seamlessly connected illustration, e-application, and automated underwriting components as part of their POSD. Nearly one-third are discussing, planning or implementing POSD.

“Tier 4 and tier 5 carriers, those with DWP of $299 million or less, clearly see the opportunity and are leading in POSD implementation,” says Jim Woodward, senior vice president, life carrier solutions.

Within tier 4, 43 percent reported either having a project underway or having POSD as part of their current process. Tier 5 companies reported even stronger adoption with 60 percent having a project underway or having POSD processes already, according to Woodward.

Carriers reported the driving force behind POSD is pressure from the field force. Other compelling reasons for implementing POSD included reducing case turn-around times and improving case/workflow.

Carrier implementation expectations of one to two years were nearly identical to reported actual experience. However, StoneRiver has delivered highly complex implementations in fewer than 9 months.

While many factors can affect the ROI on a POSD implementation, 88 percent of respondents reported a positive ROI within three years. For complete survey results, visit the StoneRiver website.


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