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Growth Spurred as the Demand For
Underwriting
Services
Heats Up: IBU 2006 Revenues Up 80%
Marlborough, CT (February 13, 2007) – As IBU,
Inc. heads into its seventh year of providing underwriting services to the life and health
underwriting industry, the company announces 2006 year-end revenues up 80 percent over
2005 levels to $4 million. This growth was spurred by a variety of factors including a
significant increase in the demand for outsourced underwriting
services and a diversified expansion into additional product and service areas.
IBU pioneered the virtual business model for outsourced
underwriting services that allows experienced underwriters to work out of their homes
to conduct in-depth telephone interviews with insurance applicants. Following the growth
in 2006, the company now employs approximately 70 underwriters throughout the country and
handles more than 12,000 cases per month.
“When IBU began, teleunderwriting interviews using experienced underwriters
were a novel idea. Now our approach to use only highly experienced underwriters and web-based
technologies is a proven solution to reducing new business acquisition costs,” said
Lincoln Tedeschi, founder and president.
“While more and more companies have discovered the cost savings of
using an interview by an underwriter, much of our 2006 growth is due to the fact that we
have successfully diversified our service offerings beyond telephone interviews.” said
Tedeschi. “More and more companies have come to recognize the benefits of harnessing
underwriting capacity from IBU. Underwriting cases and reading medical records now accounts
for almost half of our business.”
Other highlights from 2006 include:
In September IBU become a branch of MIB Group, Inc. for multiple carriers
and is now conducting full underwriting. IBU also has established itself as a market leader
in rapid decision underwriting. The company’s underwriters conduct telephone interviews
while checking MIB and prescription databases with the objective of making an immediate decision.
Several IBU client companies conducted extensive IBU/APS comparison studies
that further validated the value of using an IBU interview as an APS alternative, particularly
in cases with specific impairments.
IBU successfully entered the life settlement marketplace
by conducting life expectancy estimates (LE’s) and telephone underwriting as well as
providing APS summaries and underwriting consulting.
The company began working with group health insurers to conduct telephone
interviews as a means to avoid the time delays of ordering APS's.
Many new clients joined the IBU roster including Pacific Life, Genworth
Financial, Thrivent Financial for Lutherans and AIG.
Looking ahead, IBU is positioned for continued growth in 2007 as more companies
look to realize the benefits of tapping into experienced underwriting expertise from IBU.
For more information about call Lincoln Tedeschi at 860-295-1190.
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