Corporate-Owned Life Insurance System Case Study

Seeking a Partner for Private Placement Offerings

The carrier profiled here began its relationship with Andesa Services in the mid-2000s, and is currently an active client.

Meeting Strict Technology Qualifications

In 2004, a leading life insurance carrier was examining the possibility of entering the private placement arena. Once the decision was made to move ahead, the carrier began searching for a partner for the build-out of its first private placement offering: a retail individually-owned product.

Just any solution provider, however, would not do. The carrier needed any potential partner to meet a number of strict qualifications. Most notably, the firm needed to provide:

  • Innate flexibility
  • Industry-leading solution functionality
  • Integrated reporting and illustration tools
  • Advanced, scalable technology
  • A dedicated client service team

The carrier found just one solution provider that could offer what it needed: Andesa Services.

Expanding to Corporate-Owned Placement with Andesa

After a successful launch of the retail individually-owned private placement product, the carrier moved to expand its relationship with Andesa. The Allentown, Pennsylvania, company next helped the carrier launch a corporate/institutionally-owned private placement product, which soon went into production on Andesa’s Java-based system. The corporate/institutionally owned offering shortly became one of the carrier’s flagship corporate-owned life insurance products.

Andesa’s system is very user-friendly from a processing standpoint, and they’re always interested in finding – and customizing – solutions that meet our needs.”

“All the while, Andesa was focused on finding solutions that met our needs,” a carrier representative said. “It was – and is – a good relationship. It’s a partnership. They consistently find the right answers; ones that ensure our needs are met. We have often presented Andesa with aggressive timelines, and they find practical solutions that help us get across the goal line.”

Converting Remaining Products to Andesa’s SaaS System

After the second private placement product reached market, the carrier made the decision to bring a significant number of existing blocks of registered VUL products onto the Andesa platform. The conversion was complex but thanks in large part to Andesa’s conversion methodology and persistent client service, it was ultimately successful.

“We now have the majority of our variable product line on Andesa’s system,” the carrier representative said. “That has been an important factor in our overall growth strategy. Andesa’s system is very user-friendly from a processing standpoint, and they’re always interested in finding – and customizing – solutions that meet our needs.”

A Continued Relationship through Policy Administration and Illustration Systems

The carrier continues to partner with Andesa Services. The relationship has proved to be very positive for the carrier, which enjoys:

Enhanced relationships with brokers: Brokers consistently comment on the advantages the carrier’s Andesa policy administration, reporting and illustration systems offers them. “In the corporate-owned life insurance space, Andesa is the standard,” the carrier representative said.

The people at Andesa, both on the operations side and the development/system support side, are absolutely committed to being there for us.”

“Partnering with Andesa brings brokers a certain level of comfort. They know Andesa, they know the capabilities of Andesa and they know there’s someone on the other end of that relationship who has their best interest in mind. Simply put, it makes their life easier – and that makes our lives easier.”

Commitment to Brokers

Superb client service: Andesa’s staff remains completely committed to meeting the carrier’s needs. “One word: Ownership,” the carrier representative said. “They’re accommodating, accessible, knowledgeable and they take ownership of projects. The people at Andesa, both on the operations side and the development/system support side, are absolutely committed to being there for us.”

Improved growth potential: Before partnering with Andesa, the carrier had a small private placement presence. Less than a decade later, they do more than $100 million in private placement business annually, and the product line has become the lynchpin of their COLI business. “It’s a combination of our products, our ratings and the ease of Andesa’s systems,” the carrier representative said.

A true team atmosphere: Over the years, personnel from the carrier and Andesa have formed strong professional relationships. “I consider us all one team,” the carrier representative said. “I look at us as one team, trying to accomplish one goal. That’s the culture we’ve created.”

 
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