Innovation Project Summary Glimpse

Delays in APS

A leading cause of delays in life and health insurance policy issue is often due to time lags in receiving the Attending Physician Statement (APS) also known as Third Party Reports and how that impacts the underwriting process.

12
Weeks
7
Members

Toronto
2017
MAY - JUL
1
MVP
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PROBLEM

Disrupting a +30 year old process

Customers are waiting months to receive life and living benefits coverage due to poor data quality, lack of physician motivation and paper based process culminating in long APS cycle times.

WHY?

The APS Experience Current Pain Points

APPLICANT
  • Long time without coverage
  • Bad customer experience
BROKER/ADVISOR
  • Lost business
  • Delayed commission payment
  • Frustrated customers
INSURER
  • High costs related to low placement
  • Negative brand perception
  • Dependancy on third party administrators
  • Long time spent waiting for APS  results
  • Second APS is often required  
  • High effort to evaluate an  APS
PHYSICIAN
  • Time commitment to complete APS  requests
  • Lack of understanding of the APS  value
  • APS requests are lengthy and unclear
  • APS fee is not sucient for timely  completion
  • Non-digital solution
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Discovery

What should this process look like in today's digital age?

How can we expedite the Third Party Reports request process?

How can we provide a risk relevant synopsis of these reports to the underwriter for a faster risk premium classification?

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SOLUTION

To encapsulate these innovations, the team created a new digital platform called "Road Runner" focused on accelerating the APS process.

One platform where all the roles can access, upload and review information. The content displayed responds to the role specifics (e.g. Insurer, Underwriter, Physician)

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Using the platform, the Underwriter sends a digital request for the APS that bypasses the TPA and notifies the client’s physician.

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Once the request is received by the physician , following a directed digital process, they complete the APS request much quicker through digital forms.

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The Underwriter receives the request back, the information has already been identified and summarized for the underwriting process.

The insurer finishes underwriting the life application and the broker (in turn the customer) is happy to get life insurance coverage in less than two weeks.

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ESTIMATED IMPACT

Brings improved data quality through new digital tools

Introduces a new physician bonus incentive program

Launches a digital process that reduced cycle times by up to 70%

Increases profitability for all the stakeholders

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APS Cost

up to 70%

Reduction in costs to request and process APS documentation

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Cycle Time

50% to 95%

Reduction in the time it takes to complete an APS request

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Case Underwriting

100% to 400%

Increase in the number of cases underwritten per day which require an APS

RESULTS

Over 3 months a new underwriting solution was developed with the potential to bring about +$80MM in benefits to the Canadian Life Insurance Industry

10
Empathy Maps
45
User Interviews
5
Surveys
35
Wireframes
80
MVP Screens
4
Prototype Sterations
1
Innovation Report
3
Project Presentations
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