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Now is the time to Reduce APS Costs

As the economy slows and app counts decrease, life insurance companies are looking for ways to maintain the bottom line. APS's typically cost 2-1/2 more times than a telephone interview by an experienced underwriter. In addition, telephone interviews are completed about 15 days faster, and any actuary will tell you that faster applications are approved, the better the placement ratio.

On June 28, 2000 the very first interview by an experienced underwriter replaced an APS. Today, many companies have discovered the benefits of using an IBU interview to replace an APS for a broad range of impairments.

Insightful Interviews for Common Conditions
While depression/anxiety was the first condition to be proven effective for an IBU interview, companies are increasingly calling on IBU for interviews about other common conditions including high blood pressure and asthma.

To help clients determine when to order an IBU interview and when to order an APS, IBU introduced the IBU/APS selection guideline in 2003. The IBU/APS selection guideline consists of 15 human body systems and 216 impairment subcategories. Each subcategory contains a recommendation for when to order an IBU interview and when to order an APS.

Until now this guideline has been available only to our clients. IBU is making this essential tool available to the industry to help all underwriting departments and BGA’s discover the power of an IBU interview.