How technology is changing the way producers work

Smartphones and tablets are now so pervasive within the advisor community that some app vendors are planning to deliver certain capabilities only to these devices. Case in point: iPipeline, which is developing software that will alert producers to carrier updates on the underwriting status of a new policy's applications. This functionality, say Brian Seidman, an executive vice president of research and development at the company, will be available only as a smartphone- or tablet-based app.

The increasing prevalence of mobile solutions among insurance and financial service professionals, and the growing ability of vendors to speed products to market, owes much to advances in app development. Many mobile solutions providers are now creating apps using HTML5, a fifth generation document markup language for structuring and presenting web-enabled content. A key advantage of HTML5, say observers, is that it's "platform agnostic," meaning that an app created for one mobile operating system, such Apple's iOS5, can (with modifications) also work on competing operating systems, such as Google's Android-based devices.

This platform neutrality lets vendors reach a wider potential audience. So it's no surprise that iPipeline has elected to build its entire 9-module iGO e-App suite on HTML5. Among other capabilities, the software automates the processing of policy applications, (including annuities contracts, supplemental Medicare coverage and final expense coverage) drop tickets and digital signatures.

The suite has a wide following. Advisors representing more than 500 independent brokerage general agencies, carriers and financial services firms use the annuity platform. And more than 30 carriers leverage the technology to distribute annuity forms and rates to independent and captive agents.

Some of the new apps, such as iPipeline's policy quoting tool, also incorporate speech recognition technology, enabling users to retrieve information from their device without having to enter text. The tool is part of a suite that also includes apps for doing illustrations and needs analysis.

Going direct

The adoption of smartphones, tablets and other mobile devices is impacting technology sourcing. Experts say that while producers continue to procure IT solutions from carrier and distribution partners, greater direct sourcing of software is on the horizon.

"Whereas traditionally we've delivered product through distributors, in the future we'll leverage a freeware model that delivers product directly to producers, regardless of whether they're independent or captive agents," says iPipeline CEO Tim Wallace. "We can do this to some extent now."

iPipeline President Paul Melchiorre thinks the evolution in IT sourcing will affect career agents as much as independent producers, a growing number of whom are now urged by carriers to BYOD or "bring your own device" to work.

"The real challenge for vendors today, even in the captive space, is to support tools on disparate devices in the market," says Melchiorre. "So we need to ensure that our products' capabilities are available to use on any device, anytime, anywhere and by any agent."

To clinch the sale, observers say, technology providers also need to be able to demonstrate a return on investment. Among the low-hanging fruit ripe for productivity gains is note-taking, an often time-consuming task that can be better handled using a dictation and transcription service.

Enter Copytalk, which avails producers of this service from a smartphone or tablet. The company transcribes dictated notes at one of its "secure" facilities — FINRA registered transcriptionists work without Internet access and are monitored by quality assurance teams — then emails the finished product to producers or enters notes directly into their CRM app.

Copytalk CEO Maree Moscati says the service enables producers to use otherwise unproductive "windshield time" (as when stuck in rush-hour traffic) to capture client conversations while they're still fresh. An ancillary benefit is the ability to satisfy compliance requirements by detailing the reasons for plan recommendations.

Need more quantifiable ROI for more mobile-based solutions? McGee says OptiFiNow's lead management software has boosted the prospect-to-client conversion rate by 33 percent, thanks in part to the app's ability to alert producers to leads that have been neglected for an extended period.

iPipeline's Wallace, citing an independent study conducted by the research firm Celent, says that electronic applications and electronic issuance of policies using iPipeline's mobile solutions have yielded savings in the cost of doing business (unit costs on average have declined from $299 to $187 per application received and from $446 to $233 per policy issued). Sales cycle times have also declined to 30 days from 50 for term life policies and to 24 days from 49 for whole life policies.

For producers, adds Wallace, the ability to transact business electronically has also increased placement ratios (the percentage of applications that result in a policy) by six to 12 percent, and availed agents of 25 percent more time to prospect. To boot, they get paid faster.

The risk of inaction

"All of these benefits come at no cost to the producer because distribution partners are providing the technology." says Wallace. "The agents who don't adopt these solutions risk putting themselves out of business."

Indeed, they do. This cautionary note is echoed by other technology vendors, not to mention advisors who are adopting the developers' products and can speak firsthand to their benefits.

Yet the new mobile solutions are but tools of the trade. Absent the requisite product and planning expertise, a sound practice management plan, discipline in its application and the drive to succeed, the most advanced technology can aid advisors only so far.

See also:

• The Skyping of the industry
• Producers and technology: Overcoming adoption hurdles
• 7 advisors who are leading the tech wave