The ability to submit annuity applications electronically, or the eApp for annuities, is finally gaining momentum in the annuity space.
The eApp Debut
For years, life and property and casualty insurance carriers have saturated the market with multiple options to submit business online.
The annuity space, however, seemed to be in a holding pattern from 2007-2015, when the eApp was mostly available solely to financial advisors selling variable products for big wirehouses. During that time, over 90 percent of annuity applications were submitted via paper filled out manually by an agent or financial advisor—an increasingly antiquated and time-consuming process for all involved.
Today, fixed SPDA and index annuity products are being added to eApp platforms, and the eApp for annuities is being offered through other distribution channels such as independent brokerage agencies, banks and independent broker dealers.
With the advent of integrated sales platforms, DOL and other connected services, the benefits of the eApp for annuities to agents and financial advisors has grown significantly.
Learn These AOE and eApp Platform Functions
Application Order Entry (AOE) is a method of completing an annuity application online using an eApp platform.
The agent or financial advisor logs into an agent online portal or accesses the eApp directly from a vendor or brokerage website. Logging into an agent portal allows agents a single entry for access to all sales tools available to them, including the eApp.
There are multi-carrier and single-carrier eApp platforms available. In most cases, an agent chooses the carrier’s product and state, and a licensing check automatically verifies the agent’s status to sell the product.
The agent can then quickly walk through questions on the screen that are from the annuity application and supplemental forms such as replacements and 1035 forms. Other required fields and validation checks ensure the application is completed in good order.
All forms are either eSigned or printed and wet-signed.
By using the eApp through an agent portal, completing an application is a quick and easy process.
The benefit of completing an eApp versus a fillable form is that all the product rules are programmed into the eApp, such as minimum and maximum issue ages, min and max premium amounts, and product state approvals—just to name a few.
Also, integrated processes are tied into an eApp for annuities, such as compliance routing for review and approval, quoting, premium automatic transfers, netting commissions and DOL workflow.
The data is submitted automatically to the carrier’s policy administration system to quickly issue the annuity policy and pay commissions.
11 Benefits of the Annuity eApp
- Annuity application submitted in good order.
- Commissions paid faster.
- Faster and better experience for the client.
- eSign annuity applications (you don’t have to chase down signatures).
- DOL, compliance and suitability integrated workflow.
- Integration with CRMs, illustrations and annuity market research sales tools.
- Automate 1035 exchanges.
- Automate brokerage account premium transfers.
- Straight-through processing with ePolicy delivery.
- Sub-pays on flexible annuity products.
- Automate brokerage-specific forms.
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