General Business Issues

New Online Quote, Approval Tools May Boost Health Insurance Sales

Reprinted from the July 30, 2007, issue of HEALTH PLAN WEEK, the industry's leading source of business, financial and regulatory news of health plans, PPOs, and POS plans.

Insurance companies and agencies are increasingly using online tools, including a system launched by Assurant, Inc. that permits immediate health insurance approval for qualifying applicants, in an effort to tap into the ease and accessibility of the Internet.

Assurant's ExpressYES online tool, accessible at www.assuranthealth.com, provides "agent-friendly quoting, application and submission" via an online underwriting process that offers immediate approval and an insurance card that can be printed right away, with coverage starting the next day for applicants who qualify, the insurer says.

Assurant started an electronic sales and underwriting process in 2005, says Steve Cain, the company's vice president of underwriting. In 2006, Assurant incorporated 17 easy-to-understand questions into its electronic platform, and ExpressYES is the next step in streamlining the system, he says.

The insurer says it has received positive feedback from brokers, who report relief from previously "not being able to close the sale because they have to wait days for underwriting to go through," Cain tells HPW.

The company expects ExpressYES to "increase business — for us and for our agents," says Peter Duckler, spokesperson for Assurant. "By streamlining the application process, we hope to attract both new customers and new agents who will appreciate the time savings and means for improving customer service." In addition, he notes, brokers may be able to stop customers from shopping elsewhere by meeting their needs immediately.

ExpressYES "takes in all the information that any [insurance] application would," Cain says. "We are handing them a full policy that's a guaranteed renewable policy."

But not everyone will qualify for immediate approval, Cain says. "If they have several medical conditions, [then] we need an underwriter to look at that," particularly in cases involving comorbidities and complex conditions, he says.

While not all insurers offer the option for immediate approval, many do provide online insurance quotes. UnitedHealth Group offers consumers, employers and brokers the ability to get an online quote via www.uhc.com/getaquote.htm. Employers and consumers must enter ZIP codes and are then redirected to the United affiliate that serves their area. Brokers must first register with the Web site before they can receive quotes.

Some independent insurance agencies have also started Web sites dedicated to processing applications and furnishing insurance quotes for consumers. Among the most well-known is eHealthInsurance.com, which claims to have served more than 1 million consumers and offers quotes for individuals, families and small businesses. Among the more than 160 carriers listed on the site are Aetna, Inc., CIGNA Corp., United and numerous Blue Cross Blue Shield plans.

A new site, eShortTermHealth.com — aimed at recent college graduates, people between jobs, retirees not yet eligible for Medicare or those without insurance for other reasons — was "developed to help our customers to quickly obtain short-term medical insurance by comparing top carriers in your area," the site says.

Michael Horvat, owner of HealthQuotes.com and a partner in eShortTermHealth.com, along with Alex Velinov, says eShortTermHealth.com intends to offer quotes from three insurers — MultiNational Underwriters, Health Plan Administrators, Inc., and Assurant, Inc. — in 46 states.

Norvax, Inc.'s quote engine recently added rates in Indiana, Ohio and Kentucky for Anthem Blue Cross and Blue Shield to its online tool, which is intended for use by insurance brokers. Rates for Anthem were previously available only for Nevada, Colorado, Missouri, Virginia and Wisconsin.

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