Does your EOI system have the ability to automatically approve coverage without the review of a medical underwriter? Approximately how many of your total EOI apps were processed through this system?
Eighty-three percent of participating companies have an EOI system that can automatically approve coverage without a medical underwriter’s review; also known as straight through processing (STP). Of the four companies that don’t have STP, two plan to develop the capability within 24 months.
Of the 19 companies with an automated underwriting system, 15 developed it in-house, four purchased it from an outside vendor, with two then modifying it internally.
For companies that provided both the number of EOI applications received in 2022 and the number processed through their automated system, on average, 60% were processed through their STP system. Low and medium volume companies processed about half (53% and 51% respectively) of their EOI applications through their STP system, while high volume companies processed 72% through STP.