Eastbridge report finds voluntary carriers with ‘wait-and-see’ approach to defined contribution plans

AVON, CONNECTICUT, USA (June 18, 2014)

Eastbridge Consulting Group’s Defined Contribution: What Are Carriers Currently Doing? Frontline™ Report surveyed voluntary carriers, asking how they are reacting and adjusting to the defined contribution (DC) environment. Specifically, the survey asked about the carriers’ awareness of their products being offered via DC, their current administrative capabilities for DC cases, whether or not they separately track accounts using this method of funding, and any potential systems change or concerns they foresee regarding DC plans.

Following are some of the key findings from the report:

  • Less than half of the carriers surveyed know when their products are offered under a DC approach and, of those that do, most are made aware of this through their brokers.
  • Most carriers are not yet sure what, if anything, they will need to do to track the actual implementation and future sales via this benefits methodology. 
  • Little has been done by most of the carriers with setting up a system infrastructure to monitor and track product information and sales through defined contribution.

Brokers also seem to be taking a “wait-and-see” attitude towards defined contribution and private exchanges. According to a separate Eastbridge study, most brokers are proposing private exchanges to their clients less than 5 percent of the time and, even when a PEX is implemented, defined contribution is included less than 25 percent of the time

The 2014 Defined Contribution: What Are Carriers Currently Doing? Frontline™ Report enables voluntary carriers to evaluate their defined contribution capabilities and strategy going forward. Eastbridge Information Partners as well as survey participants receive the Frontline™ Report free of charge. For more information regarding the Information Partner program or about Eastbridge reports, email the company at info@eastbridge.com or visit the website at www.eastbridge.com

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

 


 

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