Advanced lockbox technology and online reporting expedite large volumes of variable annuity payments while continuing to meet compliance requirements.
Pittsburgh, PA (PRWEB) October 14, 2005 -- Penn Mutual Life Insurance Company, based in Horsham, Pa., states that it has reduced receipt management costs by 40 percent since implementing innovative technology for its variable annuity and deferred compensation payment process six months ago. In addition, Penn Mutual’s technology-driven process streamlines payment transactions, increases speed of service and facilitates regulatory compliance. The upgrades in service are due in great part to innovative technology that migrates Penn Mutual’s variable annuity and deferred compensation payment process to an online reporting and tracking system made possible through PNC Bank, N.A. and powered by the technology systems of PFPC, both members of The PNC Financial Services Group, Inc.
The unique payment processing solution saves Penn Mutual costs associated with processing several thousand variable annuity payments monthly, while at the same time meeting applicable state and federal regulations.
“Our new process has brought great benefits to Penn Mutual and our clients, reducing our receipt management costs by 40 percent and providing an even more efficient service,” said Rob Fullerton, director of operations for Penn Mutual. “We are pleased to be one of the few insurance companies in the country to utilize this process, which has enabled us to achieve one of the lowest costs per managed transaction item in the industry.”
Today, all of the company’s variable annuity premium payments arrive by mail directly at PFPC’s lockbox in Pawtucket, R.I., for review, processing, image scanning and integration into an electronic workflow manager. Penn Mutual can view all of its payment transactions electronically, same day, through a digital image application. Exception items are delivered online to Penn Mutual for resolution and then returned to PFPC for same-day processing. Additional technologies supporting Penn Mutual’s premium payment solution include:
- High-speed image scanning
- Voice recognition software
- Optical character recognition (OCR)
- Image Workflow
- Listbill Automation
- Copy-to-Paste technology
The innovative processing system, which has helped to improve speed of service, replaces the manual processing of each mailed payment.
“From both servicing and risk perspectives, this is an excellent opportunity for insurance companies to reduce expenses, automate audit trails and improve reconciliation capabilities,” said William Salus, senior vice president and head of PFPC Global Business Development. “From a systems perspective, it took 90 days to be fully connected and integrated with Penn Mutual. Now that the system is in place, it is supported independently of any ongoing PNC information technology resources.”
“This processing solution created for clients in the insurance industry is a winning combination, uniting PNC’s leadership in lockbox technology and customized solutions for the insurance industry with PFPC’s expertise in mutual fund processing and regulatory compliance, “ said Robert Edwards, executive vice president, PNC Bank’s Treasury Management division.
Founded in 1847, Penn Mutual is the nation’s second oldest mutual life insurer. The company provides life insurance and annuity products through a national network of insurance agents and financial professionals who help clients meet their financial needs with confidence. Penn Mutual’s national headquarters is located in Horsham, Pa.
PFPC is a leading provider of processing, technology and business solutions to the global investment industry. With offices in the United States and Europe, PFPC supports a global client base offering fund accounting and administration, transfer agency, custody and sub-accounting services for more than 55 million shareholder accounts representing over $1.8 trillion in total assets. Visit us at http://www.pfpc.com
PNC Bank, N.A., the seventh largest treasury management provider in the U.S. and the recipient of the 2004 Phoenix-Hecht Quality Index, is a member of The PNC Financial Services Group, Inc (NYSE: PNC). PNC is one of the nation’s largest diversified financial services organizations providing consumer and business banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management; asset management; and global fund services.
Contact:
Amy Vargo
(412) 762-1535 (office)
(412) 427-5803 (cell)
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