Emergence of annuities as a preferred portfolio component for seniors is increasing need for tightly integrated insurance administrative systems’ support
InsPro Technologies LLC, the innovative provider of a dynamic, out-of-the-box insurance policy administration system, today announced the expansion of its Senior Market portfolio with the addition of fixed and indexed annuity product support. Fully integrated with InsPro Enterprise, the new capability supports the most popular annuity products sold today.
The rapidly growing senior population, together with an anticipated increase in government incentives such as the Pension Protection Act of 2006 and the Treasury’s proposed guidance package on lifetime income, is spurring demand for annuities in the senior market. With annuities increasingly incorporated in diversified senior portfolios, insurers and administrators are challenged to offer – and effectively manage – a wide range of fixed and indexed annuity vehicles.
“The lack of integrated, single-system support for fixed and indexed annuities leaves insurers serving the growing senior market at a distinct disadvantage,” noted Bob Oakes, President and Chief Executive Officer, InsPro Technologies. “Going forward, the competitive edge will go to those who can efficiently launch a full range of senior–focused products, and provide integrated administrative support across all products. We’re pleased that two of our customers are planning to move their annuity blocks onto InsPro Enterprise this year, and we’re confident that the addition of annuities to our product portfolio will prompt a broader segment of insurers to consider InsPro as their enterprise policy administration system.” Unlike most systems, InsPro supports Group and Individual Life, Health, Annuities, and Hybrid products on a single, web-based system, and allows for quick deployment of a full range of senior-focused products.
With a configurable fixed and indexed deferred annuity product design, InsPro Enterprise enables business users to add multiple product variations without custom modification. In addition, clients can design pure fixed, pure indexed and fixed/indexed combination annuities, design the allowed fund allocation combinations, and select the indexes and index crediting strategies.
Annuity Product Support Includes:
- Systematic withdrawal programs for required minimum distributions and systematic subsequent payments that can be tied to maximum statutory IRA limits;
- Support for guaranteed lifetime withdrawal benefits and other organized withdrawal plans such as penalty-free withdrawals, interest only withdrawals and substantially equal periodic payments under sections 72T and 72Q;
- Easy-to-add additional benefits and riders with or without charges;
- Support for non-qualified, qualified and IRA annuity products with complete IRS tax reporting calculations and extracts;
- Support for beneficiary annuities – spousal continuation, spousal and non-spousal beneficiary annuities and five-year rule inherited annuities;
- Penalty-free withdrawal rules, surrender charges and market value adjustments that are easy to configure in product design;
- A flexible multi-tiered rate structure, immediate bonus, loyalty bonus and non-forfeiture value calculations.
InsPro Enterprise™ offers a comprehensive Senior Market solution with support for Long Term Care, Medicare Supplement, Specified Illness, Critical Illness, and now the newly launched Fixed and Indexed Annuities. The launch of these initial annuity offerings establishes a solid foundation for future annuity and universal life product support.