- What can AnnuityNet do for us?
If you sell or service annuities, AnnuityNet offers the most comprehensive technology for generating profits
from these products available on the market today. Some of the more important features of our platform are web-based
straight-through paperless processing, a front-end application process that utilizes an Application Wizard featuring
smart data collection, and embedded business logic that introduces efficiencies at each link of the annuity supply chain.
The system provides the ability for licensed representatives - or customers - to perform annuity contract servicing,
including financial transactions such as trading funds - and to view account values and transaction history online.
In addition, AnnuityNet provides powerful management tools for tracking real-time sales and commission information.
What this means to you is that errors and “not in good order” ratios are sharply minimized. Not only will the system
automatically perform a license and appointment authentication when the rep answers a limited number of questions on
the application wizard, but the AnnuityNet system also will complete the proper application, 1035 exchange form or
trustee-to-trustee transfer form and complete any carrier or financial institution compliance forms along with a full
compliance review. Data is electronically transmitted to the carriers which will further reduce any potential errors.
Your reps, your Call Center, and your customers can access full account information online through a private-labeled
website. This easy access to information increases both rep and customer satisfaction and reduces the frustration often
faced when having to call carriers and wait for information. Finally, by having sales and commission information available
online, management can design targeted marketing campaigns, meaningful training programs and in general have a better grasp
of true sales trends. Information is broken down by carrier, by product, by branch, and by rep.
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- How can AnnuityNet technology increase our sales?
By automating annuity product sales and servicing, AnnuityNet’s technology introduces efficiencies that can flow to your
bottom line. One of the most immediate advantages is to cut down the time a rep needs to spend on paperwork. The standard
benchmark is that on average a rep spends thirty minutes completing the necessary paperwork to submit an annuity application.
Through our application wizard we reduce that time by one half, while virtually eliminating “not in good order” submissions.
Electronic transmission of data to the carriers further reduces sources of error, since there is no need to re-key data.
Our market research has shown that reps spend up to 60% of their time on post-sale servicing. This includes processing
paperwork; waiting on the phone with carriers to get information; and answering questions about product specifications.
With online access to account and product information available to reps, Call Centers and customers, servicing time is
reduced dramatically. So less time servicing, better information for reps and customers - and more time selling! - are
important ways we can help you increase sales volume. And just as important, your rep becomes the focal point in the
relationship with the customer, providing for more touch points to cross sell and up sell your client base.
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- Aren't you competing in the retail space? Doesn't your Website sell directly to consumers?
Not any more. As of 2001, AnnuityNet is exclusively a provider of technology services to the annuity industry. However,
our experience in developing a robust system for linking consumers of annuity products with annuity product manufacturers
is directly responsible for the user-friendliness of the platform and the wide feature set offered by the technology.
AnnuityNet’s original purpose was to bring direct-to-consumer sales of annuity products to the Internet. Because it was
free to innovate and re-engineer the process without obligations to legacy systems, AnnuityNet was able to build from the
ground up a powerful new model for the sale and servicing of annuities, using the best features of Internet connectivity
and client-server n-tier architecture. The result was a first-to-market robust platform that connected all industry
constituencies - carriers and manufacturers, distributors and point-of-sale representatives, and customers - into a seamless,
secure and information-rich process.
The technology is so robust, in fact, that AnnuityNet realized that a better business model lay in deploying its technology
as an industry standard capable of powering the sales and servicing operations for all industry players. In 2001, AnnuityNet
discontinued its direct retail operation and became exclusively a supplier of technology services. By that time AnnuityNet
had established service relationships with many of the top firms in the business, and already was the technology engine
powering a significant percentage of annuity product sales in some distribution sectors.
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- Who is behind AnnuityNet?
AnnuityNet, Inc., was founded in 1997 by well-known actuary and entrepreneur Shane Chalke. Prior to AnnuityNet, Chalke was
known for founding Chalke, Inc., a consulting and software development firm serving the financial services industry. Chalke,
Inc., included among its clients the majority of the top 50 life insurance companies in the United States. In 1995 Chalke, Inc.
was merged with SS&C; the resulting firm was successfully taken public on the NASDAQ in 1996. Chalke's impact on the insurance
industry is evidenced by the fact that many insurance companies still utilize the software he developed in the 1980s.
AnnuityNet launched a successful $20 million funding round in early 2000, receiving capitalization from a blue-ribbon consortium
of industry organizations including GE Financial Assurance/GE Equity; Lincoln Financial Group; Conning Capital Partners; Liberty
Financial Group; BankOne; and Friedman, Billings & Ramsey.
AnnuityNet continues to receive expressions of interest from firms in the industry about additional investment possibilities
in the company. AnnuityNet accordingly is well-capitalized, and strongly positioned to bring to market the innovative technology
it has developed that is transforming the way the annuity industry does business.
AnnuityNet receives more than funding from its insurance industry and venture capital partners. These top-tier firms have contributed
their deep domain knowledge and industry expertise to refinement of AnnuityNet’s technology and business model. Their enthusiasm and
strong support for AnnuityNet is one more indication that key players find our technology the most comprehensive annuity sales and
servicing system available on the market today.
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- We've heard vaporware promises before. Does AnnuityNet really have all this built?
Yes. It’s built, in full operation now for many satisfied customers, and ready to be put to work for your organization.
AnnuityNet was the first company in the world to bring a fully-functioning annuity eCommerce platform to the Internet. As such, it is an
industry leader setting a standard for functionality and power that other companies have yet to match.
AnnuityNet’s robust technology is currently powering annuity product sales and servicing for a significant percentage of some distribution
sectors. And equally as important, AnnuityNet has a demonstrated track record in delivering the technology customized to an organization’s
needs and business processes on an accelerated development schedule
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- What distributors are currently using AnnuityNet's platform?
Charles Schwab-Using Annuity Sales and Servicing Platform in the Branches, in the Call Center, with Investment Managers (RIA's),
with Retail Customers, and for Schwab Management to support:
- application order entry and processing
- compliance review and suitability check
- account inquiry
- post-sale transaction processing
- electronic customer and broker communications package
- back-office insurance company processing
Legg Mason -Has designated AnnuityNet as its "exclusive eCommerce provider" for technology to power Legg Mason's annuity
product sales and servicing. The system includes:
- application order entry and processing
- account inquiry
- electronic delivery of applications to carriers
- integration with Legg's customer relations management information systems
PrimeVest-Has named AnnuityNet as "preferred provider" of technology for the sales, servicing and administration of annuity products
to PrimeVest's customers. The system includes:
- application order entry and processing
- compliance review and suitability check
- account inquiry
- post-sale transaction processing
- electronic customer and broker communications package
- back-office insurance company processing
TD Waterhouse-Using Annuity Sales and Servicing Platform for Retail Customers to support:
- application order entry and processing
- account inquiry
- post-sale transaction processing
- electronic customer communications package
- back-office insurance company processing
AnnuityNetAdvisor-Independent Registered Investment Advisors use Annuity Sales and Servicing
Platform (www.annuitynetadvisor.com) to support:
- application order entry and processing
- account inquiry
- post-sale transaction processing, featuring:
- robust group trading facility (patent pending)
- fee-debiting
- direct download of customer information
- electronic customer and broker communications package
- back-office insurance company processing
Security Benefit Life-Using Annuity Servicing Platform for Brokers and Advisors to support active trader
product for:
- account inquiry
- post-sale transaction processing, featuring:
- robust group trading facility (patent pending)
GE Life-Using Annuity Sales and Servicing Platform, with Retail Consumers to support:
- application order entry and processing
- account inquiry
- post-sale transaction processing
- electronic customer and broker communications package
- back-office insurance company processing
John Hancock Online Marketplace-Using Annuity Sales and Servicing Platform with Retail Consumers to support:
- application order entry and processing
- account inquiry
- post-sale transaction processing
- electronic customer and broker communications package
- back-office insurance company processing
- What other distributors are currently considering your product?
AnnuityNet has targeted both banks and broker-dealers with significant annual annuity production as its primary prospects.
It is in active discussions with dozens of leading annuity distributors.
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- Is AnnuityNet working with the same carriers we are?
AnnuityNet is currently partnering with some of the country’s most important financial services companies including
The Hartford, Nationwide, American Skandia, GE Life and Annuity Assurance Company, John Hancock Variable Life Insurance
Company, Keyport Life Insurance Company, Lincoln National Life Insurance Company and PFL Life Insurance Company (a member
of the AEGON Insurance Group). Preparations are underway to deploy AnnuityNet technology with dozens of other high profile carriers.
As a practical issue, the AnnuityNet platform is compatible with any product from any carrier. AnnuityNet technology provides
flexible Interface Services that expedite connections to the carrier with minimal problems, and allow multiple ways of integrating
with our carrier partners. This makes us flexible, easy to do business with, and attractive as a partner with carriers. AnnuityNet
has performed this integration many times, and has the experience and track record to deliver on an accelerated schedule. Our standard
timeline is to have your institution online and processing applications within 30-60 days. A full-service offering including viewing
of submitted and issued business and transaction capability can be achieved within 90 days of receiving a signed contract with both the
carrier and the bank or broker/dealer.
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- What if we have proprietary products with a carrier?
No problem. Proprietary products can easily be loaded and administered on the AnnuityNet system. The process for bringing any product
on the platform is noted above, and works for any product.
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- What are the advantages to carriers of working with AnnuityNet? How can we capitalize on their savings?
The industry-recognized average cost for issuing a contract is approximately $120, with a cost of $25 for each financial transaction that
requires interaction with a licensed individual and $16 for each transaction not requiring a licensed representative. We estimate that with
online access for both the licensed rep and for customers that the average number of calls into a carrier’s service center will decline by
approximately 50%.
Realizing the savings a carrier will realize when you and they partner with AnnuityNet provides you with real leverage to negotiate a better
deal with your carriers.
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- Who is the primary desktop user? Broker? Broker's assistant? Back office associate?
Any or all of the above. The primary desktop user can be the broker, the broker’s assistant or the back office assistant. In addition,
AnnuityNet provides a Back Office Workstation that can be used by Call Center reps as well as for customer online access. All transactions
initiated through the platform are tagged with the initiator’s ID and tracked for audit trail purposes.
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- Can we do instant issue of contracts with the AnnuityNet system?
Yes, this is one of our more popular features. Contracts can be printed directly from the Internet in the branches.
This is much simpler than the traditional field issue process, because the financial institution will not be responsible for inventorying contracts.
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- Does your system support the appointment process?
Yes. AnnuityNet supports the validation of licensing and appointments at point of sale by cross-referencing the distributor’s and/or carrier’s databases.
Generally, this is done by receiving a feed from the appropriate party and storing that as reference data which will be checked against at the time of
application entry. If a valid license/appointment is not found, then the representative will be instructed who to call for assistance based on the business
rules for the broker-dealer. A final check of appointment is made by the carrier when issuing the contract.
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- Can we customize compliance issues/questions? What about loading our own compliance/new account forms
onto the system?
No problem in either case. The application wizard can be customized to complete any broker-dealer disclosure or new account forms. Once the application
is completed, all necessary information is electronically passed to the appropriate registered principal for approval prior to being transmitted to the carrier
as part of your workflow. Customized compliance questions with “flags” can be programmed to quickly reject any inappropriate sales.
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- What happens to the application data after it is keyed in?
Application data is electronically transmitted to the appropriate carrier. This eliminates the need for
re-keying and reduces error ratios.
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- How can AnnuityNet help with compliance issues?
AnnuityNet can relieve compliance headaches in a number of ways. When a rep has selected the product and state for the sale, we do the licensing check to confirm
they can make the sale. We format our application wizard to gather info to complete both carrier disclosure and financial institution disclosure or new account forms.
Once the application is completed, all necessary information is electronically passed to the appropriate registered principal or sales supervisor for review prior to being
transmitted to the carrier. Customized compliance questions with “flags” can be programmed to quickly reject any inappropriate sales.
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- Who keeps track of all the paper files?
While the broker-dealer can maintain paper files very much as it does today, with AnnuityNet you’ll also have an alternative. One benefit of developing automated
processes is to continually review the need for maintenance of paper. If a broker-dealer would like to maintain a copy of the paper, it certainly can do so. However,
AnnuityNet would work with the BD to develop a process that is more efficient and makes use of technology to maintain client records.
All data is stored on the AnnuityNet platform indefinitely, and may be retrieved at anytime.
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- Does your system provide for a repository for marketing material?
AnnuityNet can accept any marketing material from distributors, manufacturers, or any other source, in either a PDF or HTML format.
As just one example of the kinds of capabilities available, AnnuityNet has partnered with Thomson Financial/Wiesenberger to integrate Wiesenberger’s
extensive database of subaccount information into the AnnuityNet platform. This allows platform users to view comprehensive multi-page fact sheets on
annuities in PDF format, extracted directly from Wiesenberger’s database, at the click of a button.
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- Does the AnnuityNet platform support electronic signatures?
If the partner is in a position to support electronic signatures, AnnuityNet can assist them in enabling their electronic signature infrastructure
within the partner’s deployment of our system.
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- Does your system support Custodial Accounts (i.e. tax reporting etc.)?
Based on business rules defined by the broker-dealer, AnnuityNet incorporates into the application process the appropriate selection of
accounts based on representative, customer, and annuity funding types. That information is then fed to the carrier so when the contract is
issued, the correct tax reporting occurs.
For instance, if the broker-dealer requires all IRA annuities to be established as custodial accounts, that will be incorporated as the
default path for the representative with the required information pre-populated in the ownership fields.
If the broker-deal requires annuities to reflect the same ownership registration as the brokerage account that, too, can be pre-populated
as the default ownership.
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- Can we get access to account information for inforce business?
The short answer is yes. The longer answer is that this is a customized project and costs associated with this type of project will
vary by numbers of carriers and volume of business and level of difficulty.
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- How often are account values updated?
Cycles are run at the close of business each day assuring you of up-to-date subaccount information for your customers.
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- What kind of customer information is available to us on AnnuityNet?
AnnuityNet provides comprehensive information on all aspects of customer annuity accounts. You can view customer account values,
sub-account positions and sub-account values, shown both numerically and graphically. In addition, full demographic information is
shown together with a history of all customer transactions and copies of all documentation including application, confirms, statements
and contracts are available for viewing and printing.
Financial transaction processing is also available including additional purchases, transfers, re-balancing, changes of allocation,
partial withdrawals and the set up of regular periodic contributions. In addition, customers, reps or Call Center personnel can
accomplish address changes and beneficiary changes online.
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- Can we get information about customers by rep, by branch, by division, for the whole B/D?
Yes. All customer and sales information is available based on rules established by the individual broker-dealer. For instance,
Reps might only have access to their own customer list, while regional managers, OSJ supervisors or division/district managers could
be granted access to their subordinate agents.
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- Can AnnuityNet allow for a single log-on (same as online brokerages)
Yes. This feature is available upon request.
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- Does AnnuityNet assist us in doing consolidated statements?
Yes. AnnuityNet can integrate with any statement creation service, and provide data feeds in nearly any specified
format for use in the creation of consolidated statements.
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- What kind of commission reporting can AnnuityNet provide?
Detailed commission reconciliation information is provided as a part of the operational reports. This also includes the ability to net commissions.
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- Can AnnuityNet support a split commission situation between two reps?
No problem. Multiple writing agents are captured during the application process and gross commissions can be shown attributable to whoever is listed as the writing agent(s).
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- How can management use the information AnnuityNet provides?
Here are just a few of the possibilities. Sales Managers have access to submitted, pending and issued contract information. These reports can be accessed for
any specific period of time - daily, weekly, monthly, year-to-date, since program inception or anywhere in between. All reports are broken down by carrier, by
product, by branch/district, and by rep. Submitted business is further broken down by mode of payment - EFT, Check, 1035 Exchange and Other. Pending business
is broken down into 0-30 days; 31-60 days; 61-90 days; and Over 90 days categories. Issued business is broken down numbers of and value of contracts by status -
active; payout; freelook; and surrendered.
This information provides you with an accurate picture of what carriers and products are being sold by which reps. You can use this information to leverage your
relationship with carriers and wholesalers. You can develop more meaningful training programs as you chart strengths and weaknesses of individual reps.
Another use: real-time online access to up-to-date commission information allows you to develop meaningful compensation programs and allows you to reconcile
commission statements more easily.
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- Can we limit who gets to see what information?
Access to sales information as well as levels of transactional processing can be limited on an institution-by-institution basis. This allows for maximum
flexibility, because the reps in your broker-dealer might have a different hierarchy than another broker-dealer. Reps may be limited to their own customer
lists and their own individual commission reports; while managers would have their subordinates’ information. Multiple levels also can be supported.
Customer transactional ability can be limited on a broker-dealer by- broker-dealer basis to best suit your customer service philosophy. For instance, you
may want more interaction with a rep and therefore limit the ability of a customer to process his or her own transfer or partial withdrawal.
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- What do we get with a "private-labeled" Website?
The private-labeled website is a hyperlink from your website to an AnnuityNet site which is customized with your logo, your color scheme
and mirrors your framing. Among other features, the private-labeled website will provide for a logon by rep and by customer (this can be a
single log-on compatible with your customer’s internet logon). The site would include a Product Center, Educational Center and Customer Account Center.
The Product Center will provide a full description of the products that your particular broker-dealer offers (from a rep standpoint this would
be limited by the carriers with which he is appointed). All material in the Product Center has been filed with NASD for consumer use. The
information includes a comparative product and fund review; dynamic annuity payout quotes (immediate annuity quotes by product based on customer’s
individual needs). Performance information is not only based on standardized SEC numbers, but can also be customized by specific dates by the
rep or customer. Sample contracts, prospectuses and proxy information are also included.
The Education Center also includes only NASD Approved Consumer Material. This Center is geared for everyone from the beginning to the savvier investor.
The Customer Account Center will require a logon and is where a customer will go to view his or her account information and submit transaction requests.
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- How are trades transmitted to Insurance Carriers - proprietary feed, NSCC or other (fax or mail)?
AnnuityNet can support multiple interfaces with virtually any back-end system. The emerging standard of XML is the most powerful and flexible method of data
exchange, but other options are available including NSCC, flat file feeds, and custom interfaces. Once a feature set has been determined for deployment of a given
platform, AnnuityNet will provide interface specifications to achieve the desired functionality.
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- If we do not transmit through the NSCC, what are our options?
If your institution does not wish to use the NSCC, AnnuityNet can customize our interface to match pre-existing feeds into partner systems, or can assist the partner in developing new feeds to enable any additional functionality required.
Once a feature set has been determined for deployment of a given platform, AnnuityNet can provide interface specifications to achieve the desired functionality.
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- I'm worried about security. Whose information is this? Where does it reside?
Your data remains under your control, and cannot be accessed by anyone outside your system. All data is hosted on AnnuityNet servers
that are housed in Sterling, VA in a Telco-grade data center under a co-location with Exodus. Exodus is a first-tier hosting facility
that is fully facility managed. We have created proprietary interfaces that effectively segment our core technology components from
outside technologies or externally defined interfaces, providing for easily protected intellectual property.
AnnuityNet is contractually bound with the broker-dealer by a strict confidentially agreement which prohibits the use of any customer data.
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- How secure is the data when being transmitted?
Both physical and logical security are state-of-the-art. For transmission security, all sensitive HTTP data is transmitted through a
128-bit secure socket layer (SSL). All transmissions to carriers are sent with PGP encryption. VeriSign is the certificate of authority for our web server certificate.
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- How long will it take to get the AnnuityNet platform customized to our requirements and connected to our in-house systems?
AnnuityNet has a strong core competence and a demonstrated track record in building technology platforms to customer business requirements on an accelerated development schedule.
Depending on Tier of services requested, the technology can be integrated with your systems within 60 to 120 days once business engineering has been completed.
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- What kind of computer equipment or software do my offices/reps need to use AnnuityNet?
The AnnuityNet technology uses a familiar browser-based interface, and the system can be accessed with a standard 56K modem connection. Virtually any current hardware/software
setup can operate with the platform. Minimum recommended browser versions are Netscape 4.5 or higher or Internet Explorer 4.01 or greater.
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- How long will it take to implement the AnnuityNet platform on our system?
Depending on which level of features you choose for your organization, AnnuityNet can automate your sales process in as little as 30 days and probably at the longest 120 days.
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- What level of involvement will be required from our IT department?
We are certain that your IT Department will want to perform due diligence on AnnuityNet. Upon signing a Non-Disclosure Agreement,
we would be happy to share our Technical Capabilities document with your institution. Conference calls between our IT Departments are
welcomed and encouraged. A due diligence trip to visit our facilities can easily be arranged.
Once the contract is signed, the AnnuityNet IT department does 95% of the work. We anticipate that your IT department will want to
review our work and perform joint testing with us.
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- What about GLB?
Title V of the Gramm-Leach-Bliley Act established a set of comprehensive privacy laws at the federal level applicable to any
firm that provides financial services.
Generally, a broker-dealer may not, directly or through any affiliate, disclose to a nonaffiliated third party any nonpublic personal
information, unless such broker-dealer provides or has provided an "opt-out" notice.
Opt out does not apply in certain instances. A broker-dealer is not prevented from disclosing nonpublic personal information to
a nonaffiliated third party to persons performing services for or functions on behalf of the broker-dealer, including marketing of
the broker-dealer’s own products or services, or financial products or services offered pursuant to joint agreements between two or
more broker-dealer; if the broker-dealer fully discloses the providing of such information and enters into a contractual agreement
with the third party that requires the third party to maintain the confidentiality of such information.
In other words, in cases where information sharing is necessary to complete a transaction or service the customer's account, a
broker-dealer must disclose to the customer that it will share nonpublic info with third parties to service the account.
AnnuityNet and the broker-dealer must include language in our contract (which is our standard procedure) agreeing to maintain the
confidentiality of nonpublic information.
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- What if we're working with a TPM?
Many Third Party Marketing firms today have a technology solution of one form or another. We believe the technology developed at AnnuityNet offers broader capabilities than found at most of those firms. However, we’re not seeking to replace your relationship with your TPM but to enhance the technical capabilities. Interfaces can be built that will fill in the blanks - whether
that is a front-end application system or a detailed management console. You’d probably be surprised at the number of TPM’s AnnuityNet
is working with today.
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- How can I find out more about AnnuityNet?
Additional information on our services and a contact list of management personnel can be found on our website at www.annuitynet.com. You can also request more information by email
at salesinfo@annuitynet.com or call toll-free 1.877.835.5820
