IBU News Archive

IBU 2003 Revenues Up Over 50%; Growth Fueled By Outsourcing Trend

Marlborough, CT (January, 2004) – When it comes to call center support services, outsourcing is becoming synonymous with offshoring. However, Interviews by Underwriters, Inc. (IBU), a privately held US-based outsourcer to the worldwide life and health insurance industry, is bucking this trend. With a virtual business model using highly experienced underwriters, the company is fast becoming the vendor of choice by companies throughout the US and UK.

As evidence of IBU’s success, the company’s 2003 revenue increased more than 50% over 2002 levels. The strong performance reflects a double-digit increase in both the number of clients served and interviews conducted. In 2003, IBU underwriters conducted 22,700 telephone interviews on behalf of 23 clients, compared with 10,000 interviews for 12 clients in 2002. New US-based clients added in 2003 include: American National Life; Erie Family Life; Harleysville Life; Liberty National; Midland National; Philadelphia-United Life; Texas Life; and United Insurance Company Inc (UICI).

Also in 2003, IBU increased its workforce of experienced underwriters by nearly 50%; the company currently employs 24 professional underwriters. Other highlights for the year include:

• The formation of a strategic relationship with Virtual Insurance Technologies, Inc. (VIT), a developer of online signature technology that allows actual cursive signatures to be obtained from applicants via a computer mouse
   
• The creation of strategic alliances with two major paramed companies, APPS and EMSI
   
• Successful entry into the UK market with the addition of three new clients: Royal Liver, Assurance Royal London, and CIGNA

IBU, founded in 2000 by Lincoln Tedeschi, president, is headquartered in Marlborough, CT. The company uses a virtual business model that allows experienced underwriters to work out of their homes to conduct in-depth telephone interviews with insurance applicants. The resulting information is entered online into secure, company-specific application forms that allow Home Office underwriters to expedite risk classification and reduce adverse selection while decreasing the dependence on medical records. By investing in technologies that capitalize on the knowledge and experience of underwriting professionals, IBU delivers telephone interviews that are far superior to traditional call center providers.

“IBU is successfully cultivating an underserved niche in the life and health insurance industry,” said Tedeschi. “Home Offices recognize the need to outsource teleunderwriting support to reduce their workloads and increase response time. Our approach to use only highly experienced underwriters and web-based technologies offers the added benefits of generating higher quality business while reducing new business acquisition costs.”

Looking ahead, IBU is positioned for continued blockbuster growth in 2004. The company conducted a record 2,501 interviews in December and has already committed five new customers to date this year. In addition, IBU is actively stepping up its profile within the industry through planned speaking presentations and participation at numerous events and seminars throughout the coming year.