For many years, the insurance and retirement industry has been progressively moving towards digital solutions. The Insured Retirement Institute (IRI), the leading insurance and retirement trade association, recently conducted several surveys to better understand industry needs. The surveys revealed that the industry could benefit from fully digital, streamlined solutions, leading IRI to establish the “Digital First for Annuities” initiative to help guide best industry practices and solutions.
Digital transformation has long-been a strategic goal for DTCC’s Insurance and Retirement Services (I&RS), and building on IRI’s research, I&RS created a targeted plan to address current industry needs.
“Reviewing the survey insights, following the ‘Digital First for Annuities’ initiative and through conversations with our clients, we have developed a plan for some new, fully digital, standardized DTCC solutions to support the annuity industry,” said Jeanann Smith, DTCC Director, Senior Product Management for Insurance & Retirement Services.
I&RS’ plan includes three new API solutions, each addressing a unique industry need and launching into production by year-end 2024:
- DTCC’s Producer Authorization (PAR) provides real-time validation of a producer’s credentials for selling insurance products in different jurisdictions. The API-based PAR service creates efficiencies by eliminating proprietary methods, standardize the validation process to reduce Not in Good Order (NIGO) application submissions, provide real-time results for precise sales decisions and more.
- DTCC’s Paperless Replacement Processing (RPL) is a method for exchanging critical information during the 1035 exchange/transfer process from request submission through surrender and settlement without the need to share documentation. The RPL API service allows for DTCC to be a trusted intermediary between carrier parties, provides multiple levels of standardization and automation with the 1035 exchange/transfer process and ultimately, reduces the completion timeframe.
- DTCC’s Activity Status Tracking is a real-time status request and response API messaging service to track annuity applications through the underwriting process. This messaging service will provide insight, standardization, stability, and reduced risk across different stages of the application submission process until the policy is issued. By sharing critical status messages across all stages, this service will allow for increased speed to issue.
“Our team quickly recognized the digital challenges that the industry set, and we are excited to share that these new solutions will be launching this year,” said Justin Schwartz, DTCC Executive Director, Product Management for Wealth Management Services. “The transformative effect these solutions will have on the industry will ultimately create faster transactions, seamless standardization rules and real-time management for insurance and retirement services.”
If you are interested in learning more about the fully-digital transformation I&RS is building for the industry, please reach out to your relationship manager or fill out our Contact Us form.