The Depository Trust & Clearing Corporation and Pivot/Info-One have developed a fully-automated annuity application processing system for the US insurance industry.
The system, using Pivot/Info-One's InfoSource solution and DTCC's insurance processing service (IPS), allows insurance representatives to complete online annuity applications at their desks or from a laptop in a customer's home and pass them directly to the insurance carrier.
Randall Grespin, managing director for Distribution Services at DTCC, says: "This service brings us closer to mainstreaming insurance products by taking what was a time-consuming, paper-based, manual procedure - that could take days or even weeks to complete - and turning it into an automated process that can be completed within 24 hours...It provides broker/dealers with the tools they need to sell and process annuities effectively and efficiently and creates an additional source of revenue for them."
First Union Securities is the first customer to begin implementing the system. It is intended that 7750 financial advisers at First Union will be equipped with the annuity applications technology.
Richard Randa, senior vice president of annuity marketing, First Union Securities, says: "At First Union, we anticipate this new system will help us transact more business with our current broker force and at the same time enable us to become efficient as we grow."
"In my opinion, this system will get more brokers to sell annuities because trades will be more transactional in nature, less confusing, and the system will allow broker/dealers to track all the annuity business they do," adds Randa.
In addition to First Union, Pivot/Info-One will supply its front-end technology to the SunAmerica Financial Network, providing 13,000 registered representatives with the Web-based annuity processing system.