The 2008 release of The Administrator contains support for both Universal Life and Annuity combination products.
Woodridge, IL (PRWEB) July 15, 2008
LIDP Announces Policy Administration Support for Combination Products
Insurance Software Provider LIDP Consulting Services, Inc., Offers Full Support for Combination Products with the 2008 Release of The Administrator
The Administrator, from LIDP Consulting Services, Inc. is the insurance industry's first and only truly 24x7 online real-time policy administration, claim administration and agency management system with support for all life, health and annuity products. The 2008 release of The Administrator contains broad support for the processing of combination products on a single contract.
Aging boomer population, increased life expectancy, spiraling health care costs, and recent favorable tax treatment are all factors that will undoubtedly fuel the sales of combination products in the near future. Many of the larger North American carriers are currently working on their combination product designs. Experts have argued that LTC riders will soon become as commonplace as waiver of premium. Current annuity carriers, and those looking to enter the arena, need to be looking closely at their current system limitations to determine if, when and how they will support these products.
At the recent NAVA Operations & Technology Conference, during the session on combination products, it was suggested that an acceptable approach to the administration of combination products might be to process the annuity and LTC products as two separate contracts (potentially on two separate systems). This "umbrella approach" would require extensive handshaking between systems in order to keep the contracts in sync at the time of claim payment. Not only would the handshaking between systems be extensive, the repetitive nature of LTC claim payments exacerbates the problem. A manual work around solution will almost certainly become unworkable as the volume of LTC claims increases.
The Administrator takes a much more holistic approach. A single contract is created for the combination of the two products. Processing rules allow the carrier to select the appropriate behavior for the contract at the time of claim payment. As claim payments are processed, contract values are adjusted automatically, eliminating the need for manual intervention.
"Changes to the tax code (Section 7702B) as well as the Pension Protection Act of 2006 are encouraging the development and sale of Life and Annuity contracts with Long Term Care Riders," said Andy Ottens, LIDP's Vice President of Client Services. "The 2008 release of The Administrator contains support for both Universal Life and Annuity combination products."
About LIDP Consulting Services, Inc.
LIDP Consulting Services, Inc. has provided software and consulting services to the life, health and annuity industry for over 25 years. LIDP specializes in comprehensive administration solutions and legacy system consolidation.
LIDP Consulting, Inc.
email: info @ lidp.com