1. Straight Through Processing

2. The Independent Challenge Scott Sinclair Executive VP & Chief Operating Officer Transamerica Life Canada

3. Advisor and Client Distributor CLIENT SIGNS PAPER APPLICATION Most advisors spend 70% of their time completing paperwork Carrier Paramedical ADVISOR DELIVERS APPLICATION TO DISTRIBUTOR Average 2 to 5 days to deliver Application to Distributor Current Life New Business

4. DISTRIBUTOR’S MAILROOM RECEIVES/SORTS DISTRIBUTOR KEYS DATA INTO SYSTEM DISTRIBUTOR SCANS OR PHOTOCOPIES Current Life New Business Carrier Advisor and Client Distributor Paramedical DISTRIBUTOR SENDS BACK TO ADVISOR IF NOT IN GOOD ORDER / MISSING DATA – 50-70% of time ADVISOR SENDS BACK TO DISTRIBUTOR DOCUMENTS IN GOOD ORDER DISTRIBUTOR ORDERS PARAMEDICALS IF REQUIRED DISTRIBUTOR COURIERS APPLICATION TO CARRIER - Usually 5 to 7 days from time of sale

5. Current Life New Business Carrier Advisor and Client Distributor Paramedical CARRIER RECEIVES APPLICATION On average 20-30% not in good order CARRIER OPENS AND SORTS MAIL CARRIER RECEIVES PARAMEDICAL RESULTS 10 days on average from sale to appointment to complete CARRIER KEYS DATA INTO UNDERWRITING AND ADMINISTRATION SYSTEMS CARRIER SCANS APPLICATIONCARRIER UNDERWRITES RISKCARRIER ISSUES CONTRACTCARRIER COURIERS CONTRACT TO DISTRIBUTOR

6. DISTRIBUTOR MAILS CONTRACT TO ADVISOR FOR DELIVERY TO CLIENT CARRIER PAYS ADVISOR AND DISTRIBUTOR COMPENSATION Current Life New Business Carrier Advisor and Client Distributor Paramedical

7. INDUSTRY AVERAGE TURNAROUND = 36 DAYS Current Life New Business Carrier Advisor and Client Distributor Paramedical

8. Imagine A World... Advisor and Client Distributor Paramedical ADVISOR COMPLETES ELECTRONIC APPLICATION WITH CLIENT ADVISOR SUBMITS APPLICATION ELECTRONICALLY TO DISTRIBUTOR AND CARRIER – 100% in good order ADVISOR SUBMITS PARAMEDICAL REQUIREMENTS ELECTRONICALLY PARAMEDICAL PROVIDES RESULTS TO CARRIER Carrier CARRIER UNDERWRITES RISKCARRIER ISSUES CONTRACTCITS FEEDS BETWEEN CARRIER AND DISTRIBUTOR CITS FEEDS BETWEEN DISTRIBUTOR AND ADVISOR CARRIER PAYS ADVISOR AND DISTRIBUTOR COMPENSATION INDUSTRY ESTIMATED AVERAGE TURNAROUND 24 HOURS – Subject to Paramedical and APS

9. Building the faster future... Drop Costs... Drive Sales Imagine A World... Advisor and Client Distributor Paramedical Carrier

10. What’s Unique for the Independent Channel 1.Advisor Focus / Engagement http://www.cliedis.ca/summit/CLIEDISSummitAdvisorSurveyResults.pdf 2.Common Capture and Delivery Platform 3.Standards – Shared -CITS

11. What’s Unique for the Independent Channel Does Not Include Points of Competition –Product –STP – Straight Through Processing –Automated Underwriting –Electronic Statements etc.

13. Straight Through Processing A Career Sales Force Perspective Norm Leblond Director – Technical Underwriting Sun Life Assurance Company of Canada

14. Current State 128,000 Life Insurance Applications –20-25% Preferred 28,000 Critical Illness Insurance Applications E-App Penetration Rate 99% 40% of Non-medical Cases Accepted Electronically –15-20% of All New Business Applications 70-80 Underwriters 40% of Accepted Cases are Auto Mailed

15. Looking Back 15 Years Strictly Life Insurance Sales –No Critical Illness, No Preferred 120,000 Applications Submitted Annually E-App Penetration Rate 96% 50% of Non-medical Cases Accepted Electronically –35-40% of All New Business Applications 25-30 Underwriters Policies Produced, Checked and Mailed Manually

16. Back to the Future! Enjoy the Benefits of Straight Through Processing –Less Touches –Decreased Turnaround Time –Increased Speed of Issue –Increased Placement Rate –Quality and Consistency of Underwriting

17. Opportunities Increase Straight Through Processing with: Changes to Underwriting Requirements Underwriting System Enhancements –Include Preferred Criteria Integrated Tele-underwriting The Ability to Improve Use of Current Resources –Vendors –Off-Site Underwriters

18. Non-medical Requirements 30% of Applications are Available for Straight Through Processing

19. Add Vitals and Labs Potential to have 84% of Applications Available for Straight Through Processing

20. Add Integrated Tele-underwriting Potential to have 99% of Applications Available for Straight Through Processing

21. It’s Not Easy! Important Things to Consider: –Time to Market –Cost/Benefit Analysis –Expertise Required –Large Scale Impact of Errors/Omissions

22. In Conclusion While it may not be easy, everyone can benefit with straight through processing. For Sun Life’s Career Sales Force….it’s the way of the Past, the Present and the Future!