Overall, carriers mentioned increasing participation rates and better educating employees about the need for disability insurance as specific challenges they face with their VSTD product. More specifically they indicated that the increase in electronic and self-service enrollment options has made educating employees on an already complex product even more difficult, which can negatively impact participation results. This is further complicated by an increasing demand by employers and employees for more product choices and benefit options, making it even more difficult to explain the product to employees.
When looking at the data by platform, carriers expressed slightly different challenges specific to VSTD profitability and pricing. For group products, the challenges are more focused on commoditized pricing and anti-selection issues, but also making sure that enrollment costs are covered and participation is met. For individual and hybrid products, the challenges revolve around helping the customer understand a complex product and competing against the traditional group disability product that has much lower premiums.
Eastbridge’s Voluntary Short-Term Disability Products Spotlight™ Report includes 20 carrier participants representing 25 different VSTD products. The report includes general market and carrier information and then detailed information on each participant’s product features and benefits, underwriting guidelines, rates and premium structure and commission and compensation, as well their views of the current trends and challenges surrounding the VSTD market.
Voluntary Short-Term Disability Procucts, a Spotlight™ Report
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.