NAVA has teamed with IBM to launch a tool establishing an automated standardized process that streamlines the sale of annuities.

The Common Reference Architecture Model provides a framework for the implementation of NAVA’s Straight-through Processing (STP) Standards Initiative.

The STP initiative was created to help the industry prepare for the expected growth of the annuity industry as the baby boomers retire with more than $17 trillion in assets.

The STP-compliant annuity sales process will allow for “seamless interoperability between distributors and insurance carriers,” according to NAVA.

The initiative is also designed to ensure transparency and enhance the overall consumer experience.

The STP Initiative streamlines the annuity business process through advanced IT technologies from IBM.

“The existing manually-intensive and paper-constrained annuity business processes are complex, inefficient and highly regulated,” said Deborah Tucker, vice president of NAVA. “STP is the first program of its kind to comprehensively address these issues by defining a streamlined annuity sales process that is all electronic and in compliance with federal and state regulations.”

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