The majority of carriers recently surveyed for Eastbridge’s What Voluntary/Worksite Carriers Can Measure Frontline™ Report track total sales and inforce premium most often on a regular basis, which is at least quarterly. Many also regularly track overall profit, loss ratios and persistency, although a few indicated that they only track these annually or by special request. When broken out by distribution segment, sales and inforce premium continue to be the most commonly tracked measures. Only about one-third of the carriers track persistency, loss ratios and profit by distribution segment on at least a quarterly basis.
The survey also found that large companies are more likely than small companies to regularly track persistency and loss ratios on their voluntary business. In addition, group companies are somewhat less likely to measure persistency and profitability of voluntary.
For the majority of those surveyed, Senior Managers are responsible for developing and setting goals for the measures tracked. Carriers with less than $100 million in new business annualized premium (NBAP) are generally more “top-down” in their approach to goal setting with Senior Management more likely to set the goals. Carriers with greater than $100 million in NBAP are more likely to negotiate those goals among the various management layers.
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.
Eastbridge Information Partners as well as survey participants receive the Frontline™ Report free of charge. Click for more information regarding the Information Partner program or about Eastbridge reports. You may also email us at email@example.com
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.