AVON, Conn.--(BUSINESS WIRE)--Over 80% of carriers surveyed have seen their voluntary takeover volume increase in the last three years, according to Eastbridge’s Takeovers and the Voluntary Market Spotlight™ Report. Carriers don’t expect this trend to reverse anytime soon. In fact, over 95% expect the volume of takeover business to increase in the next three to five years.
Although takeover sales are expected to continue growing, few carriers actively encourage takeovers. Some of the reasons cited include difficulty in matching rates and benefits in takeover situations as well as product pricing and profitability concerns. Carriers are particularly concerned about increased shopping of voluntary business, which is more prevalent for traditional group voluntary products such as dental, LTD, term life and AD&D. In the Voluntary/Worksite Marketing: An Executive Perspective Frontline™ Report, executives cited the potential damage takeovers might have on traditional pricing assumptions as a top threat to voluntary.
Eastbridge’s 2017 Takeovers and the Voluntary Market Spotlight™ Report provides more detail on current carrier takeover practices, trends and preferences, providing a valuable snapshot for carriers to compare their own results to others in the industry.
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.