The majority of carriers participating in the Tracking and Packaging Accident, Critical Illness and Hospital Indemnity Plans survey indicated that most of their 2016 sales were 100% employee-paid. Hospital indemnity had the highest percentage of sales, with some level of employer-funding. However, the hospital indemnity numbers were skewed by two companies with very high levels of employer/employee-share sales. Without these outliers, 95 percent of the hospital indemnity sales were still 100% employee-paid.
Plans with employer-funding are structured as a base with buy-up about half of the time, while most of the carriers structure the plans this way only some of the time. Four (4) carriers indicated they use a buy-up sales approach all of the time. (These four all sell relatively small amounts of employer/employee-shared premium for these products.)
Additionally, most of the carriers surveyed do not bundle their accident, critical illness and hospital indemnity products. However, those that do bundle typically offer discounts or underwriting concessions along with the bundle. The most common concessions include lower participation minimums or higher guaranteed issue amounts.
The objective of the Tracking and Packaging Accident, Critical Illness and Hospital Indemnity Plans Frontline™ Report was to explore if accident, critical illness and hospital indemnity plans are being sold as employer-funded products and how these products are being packaged. For the purposes of this survey hospital indemnity, supplemental medical and “gap” products are referred to as hospital indemnity. With this data, companies can compare their own practices to others in the industry.
Tracking and Packaging Accident, Critical Illness and Hospital Indemnity Plans, a Frontline™ Report
Eastbridge Information Partners™ and survey participants receive the report free of charge. For information regarding the Information Partner program or about Eastbridge reports, email the company at email@example.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.