34 ID Trends NAILBA
A tall order
Solving NIGO applications
Some digital solutions report average NIGO rates of between 4 % and 10 %.
Not in good order ( NIGO ) rates are notorious in our industry . They are the not-so-silent killer of many distribution firms ’ bottom lines . NIGO rates are a rampant issue , causing expensive delays in application processing . On average , 60 % of life and annuity applications are deemed NIGO .
Both insurance carriers and distributors have an interest in reducing NIGO rates . Correcting and resubmitting an application is a frustrating and time-consuming process . Advisors must track down missing forms or signatures and locate overlooked supplemental documents . Ensuring the missing content makes it to the back office can take days in and of itself . A single NIGO , depending on the steps needed to correct it , may take a week or more to resolve .
Whether they were even at fault , NIGOs are a bad look for the advisor . Asking for missed information can cause the client to lose confidence . Many distribution firms are turning to technology for solutions . Modern insurance sales platforms are reducing NIGO rates across the industry . Some digital solutions report average NIGO rates of between 4 % and 10 %. A prominent insurance provider recently reported their NIGO rate dropping from 87 % to 12 % after adopting an end-to-end sales platform .
NIGO causes are plentiful , but a few rise to the top as the most frequent offenders .
Replacements
Allison King , SVP , Strategic Advisory Services at Hexure , formerly Insurance Technologies , is focused on client advocacy and sales enablement , advising the business in ways to capitalize on potential scenarios , trends and opportunities . Allison held key operational roles at Voya Financial for 15 years .
Around 65 % of life and annuity sales are some form of replacement . They are the most common place NIGOs occur . Which is a real problem because replacements are some of the most challenging NIGOs to solve .
Technologies like e-Application and e-Signature are helpful tools for ensuring applications are submitted in good order . A successful replacement depends on one factor outside of your control : the ceding carrier . If the client and advisor use the incorrect version of a replacement form or the form doesn ’ t meet the ceding carrier ’ s signature requirements , the process grinds to a halt . The application stalls as the carriers work to correct the NIGO .
One of the most effective ways to combat replacement NIGOs is by integrating an e-Application platform with a ceding carrier database . If the e-Application tool has the right rules and lookup capabilities , you can ensure proper signatures are provided at the time of e-Submission and require additional document uploads if needed . You can address several other ceding carrier requirements through data validation .