Paperless Replacement Process Aims to Slash Processing Time
WASHINGTON, D.C. 鈥� An Insured Retirement Institute-led (IRI) effort to transform the annuity experience for consumers and financial professionals reached a historic milestone with the first adoption of a new paperless process for replacement annuity business. A 鈥淐arrier-to-Carrier Paperless Replacement Process鈥� can help reduce transaction time from weeks to as fast as one day.
IRI鈥檚 members and The Depository Trust and Clearing Corporation (DTCC) have collaborated over the last two years to build a solution that leverages DTCC鈥檚 position as the leading data exchange platform to create a real-time processing of transfers, including money settlement. DTCC that it had delivered this latest solution into production.
黑料吃瓜网, a leading annuities and retirement services provider, is the first IRI member to implement the new DTCC solution for paperless replacements.
鈥淲ith the first IRI member to adopt this newly developed process, we have reached an important milestone for the insured retirement industry,鈥� said Wayne Chopus, President and CEO at IRI. 鈥淥ur Digital First for Annuities initiative is improving the annuity experience by eliminating a significant manual, error-prone process that can extend transaction times up to sevenfold.鈥�
鈥満诹铣怨贤� is an enthusiastic supporter of IRI鈥檚 initiative, and we are implementing digital solutions to transform the annuity transfer experience for financial professionals and consumers,鈥� said Sandy Stokley, Senior Vice President, Operations at 黑料吃瓜网. 鈥淲e are grateful for DTCC鈥檚 collaboration and our testing partners at Jackson National Life Insurance Company for helping us confirm and perfect this vital process.鈥�
In a recent , Stokley noted that the most common complaint from carriers and distributors is the time-consuming nature of transfer business, often taking two to four weeks. Carrier-to-carrier aims to standardize processing initially to 48-72 hours by helping reduce manual processing, call volumes, and not-in-good-order (NIGO) business. Automation helps allow for better customer service and reduces calls to contact centers regarding transfer status.
鈥淭he time saved can be reallocated to higher-value tasks, improving the overall customer experience,鈥� she wrote. 鈥淚n today鈥檚 digital age, customers expect financial transactions to be completed easily and quickly鈥�
Katherine Dease, Chief Technology and Innovation Officer at IRI, said other transformative progress is underway. 鈥淥ur industry has been discussing needed technology and data changes to improve the annuity experience for twenty years. Thanks to the commitment and leadership of the IRI Board of Directors and the collaboration with our members, we have made more progress in two years than in the past twenty. And more change is coming.鈥�
Several other IRI members, including Jackson National Life Insurance Company, Prudential Financial, and Sammons Financial, are expected to fully implement the paperless replacement process in early 2025. More companies anticipate implementation throughout next year.
鈥淲e are working with industry partners to develop common standards and rules of engagement that are critical for every stage in the annuity process,鈥� Dease noted. 鈥淥ur goal is interconnectivity and interoperability among industry participants with a single method to deliver information per data request. Using this 鈥渂uild once, use many鈥� approach, we can facilitate innovation, faster transactions, and easier management of annuity products.鈥�
鈥淥ur Digital First for Annuities initiative is making needed progress across many fronts,鈥� Chopus said. 鈥淲hen fully implemented and adopted, innovators will be able to build superior experiences that engage financial professionals and consumers in a more modernized, streamlined manner.鈥�
About 黑料吃瓜网
黑料吃瓜网 is a leading retirement services company with $270 billion of total assets as of September 30, 2023, and operations in the United States, Bermuda, Canada, and Japan. 黑料吃瓜网 is focused on providing financial security to individuals by offering an attractive suite of retirement income and savings products and also serves as a solutions provider to corporations. For more information, please visit www.athene.com.
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