AVON, Conn., April 23, 2020 (GLOBE NEWSWIRE) -- A full 89% of carriers surveyed in Eastbridge’s 2020 Takeovers and the Voluntary Market Spotlight™ Report reported having experienced an increase in takeover volume over the past three years.
However, when carriers were asked how they view takeovers, the most common attitude (54% of carriers) from surveyed carriers is that they don’t encourage them but are happy to take them. A quarter of carriers are neutral on the matter and 8% say they don’t like them. Carriers understand that takeovers are part of doing business in the voluntary industry and are accommodating their business practices to be better positioned to compete. Some of the specific practices mentioned include:
- Matching the prior plans benefits and, in some cases, rates
- Waiving pre-existing conditions clauses for employees covered under the prior plan
- Paying different commissions
Despite attempts to accommodate takeovers, challenges remain. Carriers noted issues with the above practices, like challenges with matching benefits due to limitations in filed contract variability or language differences between contracts and plan provisions, existence of riders, rules for individual to group product changes, and grandfathering benefit amounts.
Eastbridge’s 2020 Takeovers and the Voluntary Market Spotlight™ Report provides additional detail on current carrier takeover practices, trends and preferences, providing a useful basis for carriers to compare their takeover practices and results to others in the industry. The is currently available for purchase for $2,500. For additional information or to purchase the report, visit the report page by clicking here, e-mail info@eastbridge.com, or call (860) 676-9633.
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving companies focused on the voluntary/worksite benefits market in the United States and Canada.
FOR FURTHER INFORMATION, CONTACT:
Ginger Bates (803) 782-0560