Following through on the plan to support IRI’s “Digital First for Annuities” initiative, DTCC’s Insurance & Retirement Services (I&RS) delivered their newest API solution, Paperless Replacement Processing (RPL), as an alternative method for replacements during the 1035 exchange/transfer process.
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The 1035/transfer process for replacement business can account for a significant percent of new business transactions for carriers, and when not in good order (NIGO) transaction issues take place, they can cause both processing delays and unnecessary manhours.
“Many of our I&RS clients are supporting replacement processing in a manual environment, which lends itself to a host of inefficient operational processes, which can come with operational risk of lost paperwork, delays, additional costs and missed opportunities,” Jon Volpe, Director, DTCC’s I&RS Product Management explained. “We’ve digitally transformed the process with our new Paperless Replacements service.”
RPL facilitates and automates the delivery of annuity replacement instructions during the 1035 exchange/transfer process without sharing physical documentation. Utilizing industry message standards and automation, DTCC’s RPL service acts as a trusted intermediary for electronic exchanges.
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“Using the new RPL service, in conjunction with our carrier-to-carrier money settlement, can make a meaningful difference for the industry,” said Jeanann Smith, Director, DTCC I&RS Senior Product Management. “Replacements transfer timeframes can be accelerated from several weeks to under 48 hours, with processing occurring in real-time and data available on-demand.”
With faster processing and increased accessibility, clients can reduce not-in-good-order (NIGO) submissions, status inquiries and operational risk.
RPL creates a streamlined and standardized process for faster completions by moving annuity information and money between receiving carriers and ceding carriers.
“We believe the shortened completion cycle with our new Paperless Replacements service is going to change the way our industry executes the 1035 exchange/transfer process with clients and advisors alike benefiting from the advanced experience,” shared Justin Schwartz, Executive Director of Product Management for DTCC’s Wealth Management Services.
RPL is available for firms that are Members of DTCC’s NSCC. If you are interested in learning more about this new service, please visit the RPL product page, reach out to your relationship manager or fill out our Contact Us form.