Our client, North America’s largest life insurance provider, was looking to reduce the policy issuance cycle time significantly.It brought in Virtusa to help automate highly manual processes using the Pega platform.
Virtusa deployed the Pega Customer Services application and the Pega Customer Decision Hub to deliver several key enhancements in application processing. This enabled the client to significantly speed up their policy issuance by 70%.
Application intake for life insurance companies is a critical element in the underwriting process.
It determines risk levels and pricing, and ultimately the projected profitability of each policy. The process from application intake to policy issuance took an unusually long time – 45 days, which the client was keen on improving. A significant percentage of applicants ended up not purchasing the policy because of the long processing time.
Other significant challenges that the client wanted to address were:
- Lack of intelligent application screening for medical data meant that almost all cases, irrespective of the need, were referred for bloodwork
- The process to collect applicant data was non-intuitive, with either the customer or the agent filing a paper-based form or e-app manually
- Poor quality of data due to error-prone processing led to rework and added to the lengthy data collection process
- Manual processing of data left no scope for audit trails
Virtusa developed a two-tiered approach to address the long cycle time.
First was the implementation of Pega Customer Service to help dynamically guide each service interaction, automatically adapt service delivery, and enable rapid response based on applicant data. The second was implementing Pega Customer Decision Hub to help determine next-best-action and optimize customer interaction, increase profitability, and customer satisfaction.
Key highlights of the solution included:
- An intuitive workflow that prompted the agents to ask the right questions depending on applicant responses
- The ability to learn from each customer interaction and refine predictions to enhance policy propositions continually
- Adaptive analytics and next-best-action to understand customer behavior and predict the likelihood of the individual to buy a specific policy
- Improving the data collection integrity with enhanced logic
Virtusa helped elevate customer value by quickly and seamlessly deploying Pega Customer Service and Customer Decision Hub.
- Faster and more accurate data collection helped reduce the time taken to issue policies by 70%
- Improved sales placement ratio by 15%
- Higher agent and client satisfaction due to more straightforward and intuitive processing