There usually is plenty of talk about electronic applications among life insurers, but in a recent survey of the life and annuity business, industry analysts found insurers are taking action, as well. "We're seeing them implemented with clients," says Steve Discher, senior vice president with Robert E. Nolan Co. "We have clients, in some cases, with 90 percent or more of their applications coming in electronically."

With that level of acceptance in e-applications, Discher asserts insurers can gain a number of efficiencies on the back end as well as improve service for their customers and agents. Providing service functions such as online status–where application, endorsement, or policy changes can be done–for agents and policyholders is much easier for carriers if the policies came to them through an electronic application.

The attraction of online applications for carriers also is found in the speed of processing that is accomplished, according to Discher. "If agents submit an application electronically, they can service both the customer as well as the agent without getting involved in other downstream Web technology," he says. "[Electronic applications] are reducing a significant amount of effort to process the applications from beginning to end."