TAL Life Boosts Revenue, Strips Internal Costs, and Serves Advisers and Customers with Amazing Speed

TAL Life boosts revenue, strips internal costs, and serves advisers and customers with amazing speed

Automation Solutions

The Insurer Not-taken-up rates remained The traditional roots of TAL Life unchanged, and losing sales through Limited (TAL) go as far back as underwriting was unacceptable to 1869 when it began as the New advisers and TAL. Zealand Government Life Office. Later known as TOWER Life, it To make matters worse, customers acquired several Australian life were ending up without the insurance companies during the coverage they needed, and some 1990s. Dai-ichi Life Insurance walked away disillusioned with the Company Limited of Japan became process. Advisers demanded a better a minority shareholder in 2008, and faster solution. Any failure to Automation Solutions moving to full ownership in May satisfy changing needs risked TAL Munich Re 2011, when the company became losing pace as a market leader. Mountain View, Central Park, known as TAL Life. Dai-ichi is the Leopardstown, Dublin 18, second largest life insurer in Japan According to David Denison, Head Ireland. and seventh largest in the world with of Product at TAL, “Our objective Tel: + 353 1 293 2888 assets nearing AUD$400 billion. was to launch a completely new and Automation Solutions Japan Its operations in Japan, Australia, revolutionary customer and adviser Munich Re Vietnam, India, and Thailand employ proposition, to turn underwriting Sanno Park Tower 13F, 57,000 direct staff and 40,000 times on their head. We wanted 85 PO Box 13, 2-11-1 Nagatacho, representatives. percent of underwriting decisions Chiyoda-ku, Tokyo 100-6113, accomplished within three days.” Japan. TAL’s goal is to become the leading Tel: + 81 3 4550 1550 life insurance partner to financial Allfinanz as the Solution advisers and customers, and After reviewing five competitive Automation Solutions Australia Munich Re the largest non-bank owned life alternatives, TAL executives chose 8th Floor, 25 Bligh Street, insurance specialist in Australia. the Allfinanz solution from Munich Sydney, NSW 2000, Re as the most fully developed and Australia. Business Challenges flexible way to speed up and keep up Tel: + 61 2 8116 2900 As financial advisers drive approx- with Australians’ dynamic customer Automation Solutions USA imately one-third of TAL revenue, demands. Denison continues, “We Munich Re and in keeping with plans to be the purchased Allfinanz Interview Server 10 South Riverside Plaza, easiest company for advisers to do to gain a first-mover advantage in Chicago, Illinois, 60606, USA. business with, TAL had to modernise the Australian market-place. We Tel: + 1 847 373 9704 adviser access and streamline were a first adopter in Australia.” customer adoption times while tightly retaining and watching every Today, TAL uses Allfinanz end- administrative and underwriting to-end in every product-related detail. In previous years, all facet of its business — life, group applications were accomplished life, accelerated protection, on paper. Their first steps, e-Apps and group salary contin-uance. (advisers’ electronic submissions Allfinanz software and screens by web) were soon inadequate. speed application, processing, Munich Re Page 2/4 TAL Life boosts revenue, strips internal costs, and serves advisers and customers with amazing speed

“Adviser productivity has benefited and underwriting — sometimes STP (straight-through most. We know advisers’ dollars- to incredibly fast times. (See processing) has improved in per hour has risen. One adviser illustration.) through rigorous analysis and received our email notifying him of rules; it is being optimised by further underwriting requirements Munich Re’s ultra-flexible Allfinanz segment. while still meeting with that client. Interview Server ensures TAL’s Underwriting is highly That is fast service.” traditions of careful underwriting consistent, as borne out by stay in force through dynamically claims experience changing market conditions. David Denison, Head of Product, TAL Then Allfinanz Business Analytics software tracks and reports trends, Denison says, “Adviser productivity growth, and anomalies. has benefited most. We know advisers’ dollars-in per hour has Start to finish implementations risen. One adviser received our email took seven months, which Denison notifying him of further underwriting expected given project scope, requirements while still meeting systems interfaces, and tailoring to with that client. That is fast service.” TAL business rules. In the accompanying illustration— TAL now offers advisers iPhone not a simplistic case—the customer and iPad apps to further streamline was on risk and ready for his new business intake. Approximately 25 assignment in less than one hour. percent of advisers have downloaded “In many cases,” Denison one of these. continues, “the application is fully underwritten electronically, so Business Benefits advisers close deals on the spot. TAL saw quantifiable benefits in Some go to an underwriter who can hand very soon after installation: immediately complete them using the information provided. Others New business rose nearly 30 can only be completed after the percent in the first year application is submitted. Sometimes Offers not taken up (NTUs) our back office calls to complete the were reduced by 25 percent application.” 40 percent unit cost reduction in business operations, staffing and underwriting

Steve’s Case: When a mining electrician with a few health issues needed immediate cover before leaving to a remote mine, TAL’s Allfinanz software helped put him safely on risk in 53 minutes. Munich Re Page 3/4 TAL Life boosts revenue, strips internal costs, and serves advisers and customers with amazing speed

“Our objective was to launch a Because the business rules TAL completely new and revolutionary built into Allfinanz Interview Server customer and adviser proposition, manage many straightforward to turn underwriting times cases, underwriters now deal with on their head. We wanted 85 the more interesting applications, percent of underwriting decisions those requiring greater involvement accomplished within three days.” and professional judgment. Once complete, the customer is “on-risk” and the adviser remunerated. David Denison, Head of Product, TAL Besides benefits in speed, underwriting safety, and lower costs, Denison points out that TAL is starting to explore the power of data newly available through Allfinanz software. New knowledge will help TAL understand and serve advisers even better, and can then spread throughout the company to smooth operations and satisfy and retain customers. Munich Re Page 4/4 TAL Life boosts revenue, strips internal costs, and serves advisers and customers with amazing speed

About Automation Solutions from Munich Re

Munich Re is one of the world’s largest reinsurers providing solutions for complex risks to 40 million clients in over 30 countries.

Munich Re’s Automation Solutions are the market leader in providing new business processing and underwriting automation solutions to the life insurance industry. The Automation Solutions division of Munich Re delivers exceptional solution-based expertise that enables straight through processing (STP), increases sales and reduces costs for life insurers worldwide.

Munich Re’s Automation Solutions have enabled STP and “instant issue” for insurers and banks globally, who are now able to auto-assess the majority of new applications at the point of sale for a variety of life insurance products across the full spectrum of distribution channels. This has been accompanied by a significant reduction in new business acquisition costs.

Headquartered in Dublin Ireland, the Automation Solutions division of Munich Re also has offices in Tokyo Japan, Sydney Australia and Chicago USA. The Automation Solutions division of Munich Re stands for outstanding client proximity, and its list of clients proudly includes world leaders such as Zurich, Aviva, Aegon, Liberty, Unum, ING, HSBC, Prudential, The Hartford and Metropolitan Life.