IRI VISION: CARRIER TO CARRIER PAPERLESS REPLACEMENTS A WIN, WIN, WIN

The Insured Retirement Institute’s Digital First for Annuities initiative is modernizing the annuity experience for financial professionals and consumers. The wide-ranging effort is delivering results across multiple workstreams and bringing needed change.

One key success is the implementation of DTCC’s Carrier to Carrier Paperless Replacements, a transformative step forward that will benefit customers and operations significantly. Paperless Replacements is a new DTCC service that creates a paperless transfer of asset request between insurance carriers. When implemented with DTCC’s Carrier-to-Carrier Money Settlement process, it will decrease in-good-order processing times from weeks to less than 72 hours.

Several IRI distributor members offered their perspectives on how this important improvement will help consumers.

“Think of it as upgrading from a dial-up connection to high-speed internet—once you experience the speed and convenience, there’s no going back,” said Chet Durham, Executive Director, Insurance and Retirement Services – Strategy and Transformation, J.P. Morgan Asset and Wealth Management.

By adopting this innovative approach, distributors envision several key improvements:

1. Enhanced Efficiency and Customer Satisfaction
Paperless replacements will provide an efficient process, ensuring new business is issued at the speed customers expect.

Kristina Walch, Chief Operating Officer, Gradient Financial Group, believes the efficiencies gained by Paperless Replacements will give consumers an exceptional experience paying long-term dividends. “Paperless Replacements will drastically reduce the processing time, leading to quicker transactions and less waiting for our customers.”

“Meeting the needs of our clients is paramount,” Durham added. “Thirty-day transaction funding is a relic of the past. Our clients demand faster service, and the new 48-hour settlement timeline aligns perfectly with their expectations.

2. Improved Financial Professional Productivity
Paperless Replacements will reduce the administrative burden on financial professionals, allowing them to focus more on their clients’ needs and provide higher-quality service. This increased availability and efficiency will result in better client relationships and enhanced retention of top-performing financial professionals.

Cristal Parungao, AVP Annuities & Insurance Wealth Management Solutions, LPL Financial, said, “Many of our financial professionals take time away from their day to follow up on transfers and exchanges. Paperless replacements will reduce the processing time and, in turn, increase efficiencies for the financial professional, which will then allow them to be more available to their clients.”

3. Strengthened Distributor Relationships with Insurance Carriers
Paperless Replacements streamline distributor interactions with insurance carriers, promoting stronger partnerships. These enhanced relationships will facilitate more strategic discussions and focus on growth, reducing the friction typically associated with manual processes.

“Paperless Replacements strengthen the relationships between us and carriers,” according to Arron Price, Chief Operating Officer, Financial Independence Group. “It solidifies trust and accuracy in the data and timeliness of those automated processes. Win, win, win!”

4. Competitive Edge and Client Trust
The shift to paperless processes enhances operational speed and bolsters annuities’ competitive position in the market. Clients will appreciate the quicker, more reliable service, strengthening their trust in the industry’s ability to manage their financial needs efficiently.

“To stay relevant in the fast-paced modern world, annuity and insurance products must evolve. The Paperless Replacement process ensures that our offerings remain competitive and appealing,” Durham said.

“Paperless replacements allow advisors to align annuities on the same playing field as other financial instruments, and that puts another arrow in the quiver when helping build a holistic financial plan for retail clients,” Price said.

5. Industry-Wide Prioritization
Prioritizing the implementation of Paperless Replacements across the industry is crucial. By embracing this change, we can collectively enhance the efficiency and accuracy of operations, which benefits consumers and the industry.

“Decreasing the amount of human intervention, manual data entry, and time-to-issue for annuities increases access these powerful products. The more we can eliminate the barriers to entry, the more these products can be accessible to all,” said Price.

“We need to take the opportunity to streamline these processes for the benefit of the consumers,” Walch said.

“It is clear the time is now to put this on your high priority list and just do it,” said Beth Maziad, Senior Vice President of Insurance Solutions, Raymond James Financial. “We will all benefit from this monumental change, and we need you to partner with us.”

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Contact: Dan Zielinski