LOGiQ3 works with life insurance companies (carriers), distributors and advisors on engagements to improve and ultimately optimize distribution strategies and processes. Where outsourcing or developing a supporting services business becomes an obvious solution to improve a common process within the distribution chain, we work with the key industry participants to pursue and build these businesses.
Advisor Screening, Contracting and Compliance Monitoring
LOGiQ3 is currently working with a key group of life insurance distributors and carriers to investigate the feasibility of an industry standard service business.
Taking the feedback from carriers, distributors, advisors, Canadian insurance regulators, and these stakeholders' various associations, LOGiQ3 will work with the industry to determine whether there is an opportunity for an industry standard service model for life insurance advisor screening, contracting and compliance monitoring. Based on finding an acceptable model that meets the needs of the various stakeholders, LOGiQ3 will build out this service business with industry participation.
The Potential Model
All advisors complete a professional practice web page annually or as changes occur in their practice that includes all pertinent licensing, contracting, and compliance information as well as required releases and attestations. This page serves as a Know Your Advisor (KYA) page for all distributors and carriers the advisor works with. This information also allows for a annual and ongoing screening to be completed by LOGiQ3 and information shared with the carriers and distributors that the advisor works with. This replaces the current carrier and distributor individual requirements at time of initial contracting or transfer between distributors.
The contracting process becomes electronic and the screening and compliance monitoring becomes standardized, verifiable and audit-able, meeting CCIR identified objectives.
Advisors benefit from a single source of backed up and secured information readily available to them to ensure best practice management of their businesses. It reduces the current and likely increasing burden of dealing with multiple carriers and distributors for the submission and maintenance of relevant documentation, attestations, releases, and filings.
The business objectives of this industry standard initiative are:
- improve the annual and ongoing screening of advisors to go well beyond the current license and E&O renewal verification and in doing so, meet regulator, distributor, and carrier expectations, but in a way that does not inundate advisors with duplicate requests
- improve the annual and ongoing compliance monitoring of advisors to meet an ever increasing regulatory compliance environment and the desire for risk mitigation to meet regulator, distributor, and carrier expectations but in a way that educates and engages advisors
- reduce costs to distributors and carriers through scale, increased efficiency, reduced duplication and better processes
- improve service level to advisors and strengthen relationships with their distributor and their chosen carriers
- improve the contracting and transfer turnaround time for advisors, distributors, and carriers
- ensure we maintain our status as a well regulated, principles-based industry
To get more insight on the approach, process and benefits for the distributor, carrier, and advisor, download the full presentation document.
To learn more about the key compliance deliverables associated with this industry initiative, download the full list and see how this may benefit your organization.
For more information or to participate in this industry standard initiative for advisor screening, contracting, and compliance please contact us.
Our team of life insurance experts work with life insurance companies and distributors (or firms wishing to work within the life insurance industry) on a variety of consulting engagements.
For life insurance companies and distributors, consulting can range from complete business reviews and alignments of the firm's sales, marketing, distribution strategies and processes, to more simple engagements to develop and implement a single tactic or program such as a loyalty program or an advisor sales compensation plan.
For suppliers to the life insurance industry or product manufacturers looking to distribute within the life insurance industry we can help with industry intelligence, targeting and engaging potential customers, or assisting with launch and/or engagement plans and programs.
Please contact us to discuss your consulting needs.