Eastbridge report finds that the defined contribution approach process and requirements are still evolving and that the impact for carriers is currently minimal

AVON, CONNECTICUT, USA (August 4, 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. Only a few of the carriers indicated having plans to track or assist with any kind of activity associated with the defined contribution approach in the future. In general, these carriers do not believe this issue impacts or applies to their products and business, either now or in the future. 

The survey asked about the carriers’ awareness of their products being offered via defined contribution, their current administrative capabilities for defined contribution cases, whether or not they separately track accounts using this method of funding, and any potential systems change or concerns they foresee regarding defined contribution plans.
Below are a few other key findings from the report:

  • The majority of carriers’ billing systems are not equipped to track the employer and employee funds for a particular product separately.
  • About half of the carriers already do or plan to count defined contribution sales as part of their overall voluntary sales.
  • The primary concerns expressed by participants regarding the future of defined contribution funding included the potential impacts on participation in, and persistency of, voluntary benefits.

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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