Pressure to liberalize underwriting is the most pronounced trend cited by voluntary carriers in Eastbridge study

AVON, CONNECTICUT, USA (May 28, 2010)

Underwriting changes led the list of trends and pressures on voluntary products according to the carriers participating in the 2010 Voluntary Product Trends Frontline Report just released by Eastbridge Consulting Group.

When asked to choose the most pronounced product trends from a list provided, the majority of carriers (58 percent) selected “more guaranteed issue” while 53 percent selected “lower participation requirements.” Just under half said there was also a tendency towards more features and options in voluntary plans. All other answers (including lower prices) received significantly fewer responses.

Respondents were also asked which of several specific items causes the greatest pressure concerning voluntary products. Consistent with trends, pressure to liberalize guaranteed issue guidelines was the most common response. In fact, 43 percent of the carriers felt this was the greatest pressure area. The next two items (lower prices and increase commissions/compensation) were chosen by only 18 percent. Most (65 percent) indicated that the pressure was coming from brokers/producers. Twenty-five (25) percent said it was from the company’s field staff.

The 2010 Voluntary Product Trends Frontline Report represents the 4th edition of an Eastbridge survey on this topic. The survey is conducted every other year to track changes and trends in voluntary products. Eastbridge Information Partner Companies as well as survey participants receive the Frontline Report free of charge.

Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.