ACORD Releases Standardized Life Insurance Application to Improve Underwriting and Approval Efficiencies

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Oct 31, 2024, 09:00 ET

Form pre-cleared by the Interstate Insurance Compact for use across 47 jurisdictions

NEW YORK, Oct. 31, 2024 /PRNewswire/ -- ACORD, the standards-setting body for the global insurance industry, today announced that it has published a standardized life insurance application to help improve efficiency and accuracy for carriers and distributors. The form has been approved by the Interstate Insurance Compact for pre-filing in 47 jurisdictions, making it the first of its kind. The new application will improve customer experience, streamline underwriting, and accelerate regulatory approvals. Customers and distributors will now be able to apply for a policy from any participating life insurers using a single, industry-standard form.

This application was the result of a long-term collaboration between ACORD, life insurance distributors and carriers, and the Interstate Insurance Compact. It was designed with a digital-first approach to eliminate common industry problems, from customer frustration to time-intensive manual review and approval processes.

"Standardizing the data collection process is a critical first step in enabling next-generation digitalized underwriting," said ACORD CEO Bill Pieroni. "Providing a standard data structure from the outset of the application process directly leads to more efficient use of data across the value chain – from enabling automated screening by underwriting rules engines, to creating a more consistent digital experience for customers shopping for the most suitable policy."

All questions on the application are designed to reduce bias and minimize customer frustrations. The questions focus on information that is readily available to customers and most relevant to underwriting decisions. Carriers will retain flexibility to customize and/or omit questions to reflect their underwriting parameters and preferences, without compromising the accelerated approval process resulting from the ACORD application's pre-filed status with the Interstate Insurance Compact.

"A standard life application will greatly simplify the producer's role and the client's experience, especially when they are applying for multiple policies," said ACORD Standards Project Group Chair Andy Kramer (VP Underwriting Risk and Innovation, M Financial Group). "The producer can more accurately describe the questions that will be asked and avoid missing questions that will delay the underwriting and approval process. It should also greatly reduce the implementation and ongoing maintenance costs incurred by carriers once this application is enabled in the application platforms."

The ACORD application consists of a series of forms covering the necessary information for individual life insurance underwriting, including supplemental forms for hazardous avocations such as motor sports and mountain climbing, as well as agents' and paramedical examiners' reports. The application has been filed and cleared by the Interstate Insurance Compact for filing by individual companies under a special program. Members in good standing of an ACORD Life & Annuity program are entitled to file their ACORD-compliant application forms for Compact approval at the company level, and will automatically be moved to the Compact's Expedited Review Process queue. ACORD members can download the application now from the ACORD Forms Portal at formsportal.acord.org.

More details about the ACORD standardized life insurance application and its industry-wide transformative potential will be discussed at the virtual event ACORD Connect on November 7. Registration is free of charge for all ACORD member organizations. To register, or for more information, please visit www.acordconnect.org.

About ACORD
ACORD is the global standards-setting body for the insurance industry. For 50 years, we have been an industry leader in identifying ways to help our members make improvements across the insurance value chain. ACORD facilitates fast, accurate data exchange and efficient workflows through the development of electronic standards, standardized forms, and tools to support their use. ACORD currently engages more than 36,000 participating organizations spanning over 100 countries, including insurance and reinsurance companies, agents and brokers, software providers, financial services organizations, and industry associations. ACORD maintains offices in New York and London. Learn more at www.acord.org.

Media contact: Beth Jarecki, [email protected]

SOURCE ACORD