Todd Ewing, chairman of LIDMA's process improvement committee, summarized changes in the life insurance direct marketing industry over the past 10 years. While the industry wrote thousands of policies a decade ago using outdated technology like DOS and faxes, customers now demand instant gratification. Ewing outlined numerous challenges facing the industry, including long cycle times, low conversion rates, and slimming margins. He proposed several initiatives like electronic signatures and credit card acceptance to streamline processes and significantly increase return rates and policy placements. Volunteers are sought to advise three key initiatives: electronic signatures, credit card acceptance, and electronic policy delivery.

1. LIDMA 2006LIDMA 2006
“This is Now!”“This is Now!”
Todd Ewing
Chairman, LIDMA Process Improvement Committee

2. 2LIDMA 2006
We’ve Come a Long way…We’ve Come a Long way…
10 years ago we had:10 years ago we had:
 No InternetNo Internet
 No emailNo email
 No dialersNo dialers
 We used DOS, faxes and licked stampsWe used DOS, faxes and licked stamps
 Rate cards were the RageRate cards were the Rage
 Needed to be a genius to quote accuratelyNeeded to be a genius to quote accurately
Yet…We still wrote thousands of apps!Yet…We still wrote thousands of apps!

3. 3LIDMA 2006
This is Now. . .
Today, we have cool technology and
customers demand instant gratification
Faster Cheaper Better

4. 4LIDMA 2006
Current Challenges:Current Challenges:
 The buying Process is Brutal
 Cycle Times are crazy long
 Consumers still don’t complete the exam
 The overall Conversion rates are slipping
 Marketing Costs Have Skyrocketed
 More AOTA Decisions
 Slimmer Margins
 Too many Pipes and different Process flows

5. 5LIDMA 2006
What’s Takes Longer?What’s Takes Longer?
 Planning a Wedding?Planning a Wedding?
 Building a House?Building a House?
 Running 500 Boston Marathons?Running 500 Boston Marathons?
 Pregnancy?Pregnancy?
 Getting a Life Insurance Policy?Getting a Life Insurance Policy?

6. 6LIDMA 2006
Steps
DM’s
take to
get an
App to
Carrier
Lead Delivery 0 auto-DW email
Lead Delivery 0-1 Agent phone
Lead Delivery 1-2 Agent phone
Lead Delivery 2 auto-DW email
Lead Delivery 3 auto-DW email
Lead Delivery 4-5 Agent phone
Lead Delivery 7 outreach phone
Lead Delivery 14 outreach phone
Lead Delivery 28 auto-DW
Aged Lead
#1 email
Lead Delivery 42 auto-DW
Aged Lead
#2 email
Lead Delivery 56 auto-DW
Aged Lead
Final email
CRI 0 Agent
Confirmatio
n email
CRI 0-1 Fulfillment App Pkg letter
CRI 1 auto-DW
CRI - Day
1_sig.doc letter
CRI 0-5 Examiner phone
App to PI 7 auto-AW CRI + 7 email
CRI 7 auto-DW
CRI - Day
7_sig.doc letter
CRI 10 CM phone
CRI 17 auto-DW
CRI - Day
17_sig.doc letter
CRI 21 CM phone
App to PI 21 auto-AW CRI + 21 email
CRI 31 CM phone
App to PI 31 auto-AW CRI + 31 email
App to PI 45 auto-AW CRI + 45 email
Exam Date -1 outreach Exam Rmdr phone
Exam Complete 1 QAS Script #1 phone
Exam Complete 8 QAS Script #2 phone
Exam Complete 8 QAS Exam + 8 email
Exam Complete 10 auto-DW
Exam - Day
10.doc letter
Exam Complete 21 QAS Script #3 phone
Exam Complete 21 QAS Exam + 21 email
Exam Complete 28 auto-DW
Exam _ Day
28.doc letter
Exam Complete 31 QAS Script Final phone
Exam Complete 31 QAS Exam + 31 email
Exam Complete TBD auto-DW Exam_Final email
ARH-On 0 Fulfillment phone
ARH-On 0-3 CM phone
ARH-On weekly CM phone
ARH-On 0-21 CM
ARH -
Missing Info email
ARH-On 14 Fulfillment
ARH -
Critical -
Return $ email
ARX-On 0 Fulfillment phone
ARX-On 0-21 Agent phoneARX
New
CRI/Paramed
Incomplete
CRI/Paramed
Complete
ARH/ARM
43 Touch Points!

7. 7LIDMA 2006
Steps
needed
to place
a policy
Inforce
ARS Submitted 0 auto-AW ARS + 0 email
Submitted 0 Fulfillment Rtn Prem - TIA ineligible letter
Submitted 0 Fulfillment Rtn Prem - Payee error letter
Submitted 0-x CM ARS - No O/S Reqs email
Submitted 0-x CM ARS - O/S APS email
Submitted 0-x CM ARS - O/S Info Reqd email
Submitted 0-x CM ARS - Call Me email
Submitted 17 auto-AW ARS + 17 email
Submitted 21 CM phone
Submitted 31 CM phone
Submitted 41 CM phone
Submitted weekly CM phone
Approved Approved 0 auto-AW Approved + 0 email
AOTA AOTA 0 Agent AOTA Contact #1 email
AOTA 5 Agent AOTA Contact #2 email
AOTA 10 Agent AOTA Contact #3 email
AOTA 21 Agent AOTA Contact Final email
AOTA 0-x Agent AOTA - Confirm Accepted email
AOTA 0-x Agent AOTA - Confirm Rejected email
Closed/Declined Declined 0 Carrier letter
Declined TBD Agent telephone
DEL Policy Mailed 0 auto-AW email
Policy Mailed 0 FulfillmentDEL - No Reqs ("inforce") letter
Policy Mailed 0 Fulfillment DEL - Forms Only letter
Policy Mailed 0 Fulfillment DEL - Money Only letter
Policy Mailed 0 Fulfillment DEL - Money & Forms letter
Policy Mailed 4 auto-DW DEL - Day 4_sig.doc letter
Policy Mailed 7 CM telephone
Policy Mailed 7 auto-AW email
Policy Mailed 11 auto-DW DEL - Day 11_sig.doc letter
Policy Mailed weekly CM telephone
Policy Mailed 21 auto-DW DEL - Day 21_sig.doc letter
INF Inforce 0-x CM Inforce Confirmation email
Inforce 21 letter
Inforce 90 email
Inforce 365 email
Cancelled Cancelled 0 system letter
0 auto-AW email
38 More
Touch Points!

8. 8LIDMA 2006
Conversion Measurement Success Ratios
 Leads – App Out % 40% - 75%
 App Out – Exam Done % 45% - 70%
 Exam Done – App Back % 85% - 95%
 App Back – App to Carrier % 90% - 95%
 App to Carrier – Policy Approved % 80% - 90%
 Policy Approved – Policy Delivered % 85% - 95%
 Policy Delivered – Policy Paid % 80% - 93%
 Total Net Conversion: 7% - 33%
Breakage!Breakage!
7 Critical Conversion Drop-off Metrics7 Critical Conversion Drop-off Metrics

9. 9LIDMA 2006
Numbers Don’t Lie
 Approximately 1,000 people go online every hour
looking for life insurance . . . about 100 actually
submit a lead
 Of these 100 who raised their hands looking to
secure coverage …between 7 - 33 people
actually get a policy
 Conclusion: Of the 1,000 people who “thought” of
life insurance, between 967 – 993 poor souls…
never get a policy!

10. 10LIDMA 2006
QuizQuiz
A. Wahoo! We’ve got serious upside!
B. Get me off this planet! We have
major problems!
C. If it weren’t for the customers and
employees, this would be a great
business!
D. Mom was right- Why didn’t I get into
Computers?
Pick from the answers below
What do these numbers tell us?What do these numbers tell us?

11. 11LIDMA 2006
TheThe $400 Million$400 Million Question…Question…
 How do we improve the Process and
significantly increase our Return Rates &
Placement Ratios?
 Hint: It’s incremental and we’re all involved

12. 12LIDMA 2006
Direct Marketers Potential Increase
 Get stronger commitment from customer 5% - 20%
 Use credit card for all binders 3% - 15%
 Set better expectations of next steps 2% - 10%
 Handle objections upfront (particularly exams) 5% - 15%
 Employ strong touch-points strategy 5% - 15%
 Better, simpler app instruction & packaging 2% - 5%
 Segment leads by agent specialty and data mining 3% - 10%
 Monitor, audit and coach agent presentations 5% - 20%
 Follow-up with Cancels -- not dead yet 3% - 8%
 Crazy idea: Use e-power and totally get rid of paper apps!
Get Better with the BasicsGet Better with the Basics
Practical Improvements for DM’s, Carriers &
Exam Companies to Increase App Return Rate

13. 13LIDMA 2006
Exam Companies Potential Increase
 Give agents ability to instantly schedule exam 3% -
15%
 Use zip code locator for local offices 3% - 5%
 Immediate notification when customer cancels 2% - 10%
 Provide deeper disposition for cancel reasons 2% - 10%
 State the name of agent/agency when calling 4% - 10%
 Ongoing monitoring/coaching of examiner calls 5% - 10%
 Call the customer sooner and more often 3% - 10%
 Incentive for examiner to increase app pick-up rate 5% - 10%
 Better/more consistent reporting and analysis 2% - 5%
 Crazy idea: Come up with U/W system to replace Fluids!
Better with the Basics, II
A Deeper Partnership to Increase App Return Rate

14. 14LIDMA 2006
Carriers Potential Increase
 Electronic signature/voice signature 10% - 25%
 Easier, shorter applications 10% - 15%
 Accept credit cards for initial and ongoing premiums 5% - 15%
 Marketing material specific to DM model 3% - 10%
 Co-branding upfront to cement relationship 4% - 10%
 Endorsement follow-up letter from Carrier 3% - 10%
 Ongoing underwriting seminars (real case studies) 2% - 6%
 Promotional CD explaining the app and process 2% - 5%
 Crazy idea: Process all low premium without an Agent!
Better with the Basics, III
Increased Focus on the Top of the Funnel
Results in More Applications Submitted

15. 15LIDMA 2006
Carriers Potential Increase
 Create a customer website for status updates 2% - 4%
 Dramatically reduce DEL REQ with policy 4% - 10%
 Offer guaranteed issue for all Declinations 2% - 4%
 Better policy packaging and DEL REQ letter 2% - 4%
 Electronic policy delivery 4% - 10%
 Accept/charge credit card at DEL REQ 3% - 6%
 Reduce cycle time; true “jet issue” 2% - 5%
 Better reporting/data mining for APS, AOTA, DEL 2% - 4%
 Crazy idea: Automatic policy up-sell & end of term offer!
Help Us Help You
Practical Improvements for Direct Marketers and
Carriers to Increase Placement Ratio

16. 16LIDMA 2006
Direct Marketers Potential Increase
 Write clean business to reduce AOTAs 3% - 10%
 Employ touch-points strategy throughout process 2% - 8%
 Train/coach CM’s for better sales support 2% - 5%
 Create Mentor program to increase app out % 2% - 6%
 Establish concierge team for high premium cases 2% - 5%
 Vigilant DEL REQ follow-up (no $ vs. $) 3% - 5%
 Commitment to electronic processing 5% - 10%
 Crazy Idea: Policy Owner Marketing will be answer to Leads
Issued Ain’t Paid:
Increase Placement Ratio
“You don’t punt at the opponent’s 1-yard line!” ~TRE

17. 17LIDMA 2006
The Big 3
Future is Now with these Key Initiatives:
1. Electronic Signature/Voice Signature
2. Credit Cards: Acceptance up-front, at
policy delivery & on-going
3. Electronic Policy Delivery, including
Delivery Requirements

18. 18LIDMA 2006
Here are the 6 next steps:
Define an
“owner” for
each of the Big
3 initiatives
Each owner will
develop a small
advisory panel that
represents DM’s,
Exam Co’s and
Carriers
Create an on-going
forum to discuss
objectives,
strategies,
implementation and
standardization
Document
solutions and
submit
recommendations
to all LIDMA
members
Test, measure,
report and
adjust
Provide
resources for
universal
implementation

19. 19LIDMA 2006
Make it Happen…Make a
Difference…Make More Money
 OWNERS/ADVISORS: Need passionate,
committed members who are willing to share,
dedicate time/resources, & GET STUFF DONE!
 All LIDMA Members: By improving cycle time,
return rates & placement ratios-
Everyone Wins!

20. 20LIDMA 2006
Volunteers Wanted!Volunteers Wanted!
Please see me to participate in one of ourPlease see me to participate in one of our
3 key initiatives3 key initiatives
Thanks,Thanks,
ToddTodd
(916) 275-7843(916) 275-7843