It is a competitive world, and being able to record and measure your company’s success is extremely important for evaluating where to improve and where to build on existing strengths. In the voluntary/worksite market, however, some carriers have historically been unable to track their results or have only been able to track one piece of their business, primarily sales. In addition, different players keep score in different ways or use different “rules.” This adds to the complexity of keeping score and makes it difficult to understand the company’s strengths and weaknesses and how it compares to others in the market.
The What Voluntary/Worksite Carriers Can Measure Frontline™ Report was first released in 2005 and was updated again in 2008. This most recent version examines what today’s carriers are tracking/measuring as well as what they would like to measure. Twenty-five (25) different measures were evaluated by the participating carriers based on if and/or how regularly they use and review the measures.
Of these 25 measures, the majority of carriers (85 percent) listed sales as most important to their company, followed by overall profit (at 62 percent) and inforce premium (at 46 percent). Persistency and total loss ratios rounded out the top five at 31 percent and 19 percent respectively. The top measures that participating carriers do not currently track, but would like to, include takeover rates by funding method and participation rates by method of enrollment. This is followed closely by participation rates by type of enrollment and sales (overall and by product) in defined contribution situations. Interestingly, there were no trends or differences found based on carrier demographics (new business annualized premium or product platform).
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Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.