Part Four: The Expected ROI of Implementing Hybrid Distribution
Part four of our series exploring the need for the Hybrid Distribution of life insurance products.
In part one of this series, we outlined a new approach to life insurance distribution that embraces technology to modernize the user experience. We coined the term “Hybrid Distribution” to refer to technology that empowers life insurance consumers to research products at their own pace. Advisors can easily monitor each applicant’s journey in real-time, getting alerts when important steps are completed or if a client’s behavior indicates they need additional support. Carriers can instantly check the status of each applicant, a level of transparency that’s currently unprecedented in the life insurance industry.
The next installment was all about the power of data to help target consumers who are most likely to need your services. And the third installment focused on why Hybrid Distribution is the right choice for fraternal carriers looking to modernize.
Today, in our fourth installment, we’re taking a closer look at the expected ROI life insurance carriers can see from implementing a Hybrid Distribution Strategy.
While ROI may no longer be the only thing that life carriers are focusing on when evaluating how to pursue a digital transformation strategy, it is still important to be able to understand the impacts that can be created by implementing new solutions across the value chain.
Not only does implementing a Hybrid Distribution platform remove the problems associated t0 various clunky legacy systems that don’t talk to each other, but best-of-breed solutions like Breathe Life allow you to decrease your technical debt and increase your profits by meeting (and often exceeding) the following KPIs.
Rather than knocking on doors, Advisors can now promote and sell your life insurance products through multiple channels, including email, texts, social media, and chat. All of the information is stored in one database, making it easy to instantly pick up conversations where they left off and utilize customer data to increase cross-sells and upsells.
Our clients have experienced a 23% increase in sales and a 26% increase in premiums within the first few months of using the platform.
Reduced Cost of Acquisition
A streamlined, data-driven sales process makes it faster and easier for Advisors to find and target their ideal prospects and effortlessly deliver the right message at the right time. We’re also constantly updating our platform’s data-processing capabilities to make it easier to micro-target prospects with the highest propensity to buy and drive them to the eApp.
After implementing Breathe Life, some of our clients have seen their sales cycle slashed from weeks to minutes, with 44% of applicants being instantly approved online. Within just a month of using the platform, our clients’ customer acquisition costs have been reduced up to 33%. Their error rates also fell from 30% to 0%.
Many carriers understand the need for change but are overwhelmed by the scope of the project. We help clients develop a customized program that can be rolled out iteratively so they can focus on their most pressing pain points and experience fast wins.
New features can be up and running in as quickly as three months. A complete digital transformation of a carrier’s core systems can take as little as six months.
Optimized Risk Based on a Single Annual Fee
Our mission is to become our life insurance clients’ partner by taking on the financial risk associated with upgrading to a Hybrid Distribution model.
To achieve this, we implement the platform, integrate it with your back-end, and maintain the system for a single annual fee. Unlike other solutions, there are no surprise implementation or professional services fees.
Hybrid Distribution is the way life insurance will be bought and sold today and into the future and understanding the ROI and value of implementing this form of platform early on will separate those who survive from those who thrive.
You can download our full Hybrid Distribution eBook for free here.