Eastbridge’s 2017 Takeovers and the Voluntary Market Spotlight™ Report found that 30% of carriers have no preference towards virgin or takeover business, and just over 40% say it depends on the situation. In practice, a minority (4%) encourage takeovers, yet none discourage them. Taken together, in preference and practice, carriers are using a case-by-case approach to takeovers, relaxing rules and waiving certain provisions to win business when it makes sense to do so.
Historically, carriers have preferred virgin business over takeovers because of ease of installation for traditional voluntary products with issue age rates and heaped commissions. In 2014, almost 40% of the carriers said they preferred virgin cases. In the most recent survey that percentage decreased considerably to about 20%.
The most significant difference from the 2014 survey, however, was the increase in the percentage of carriers (from 18 percent to 41 percent) whose case-type preference changed depending on the product involved or the case specifics. Key considerations include past experience and participation, enrollment conditions, product type and platform.
The 2017 Takeovers and the Voluntary Market Spotlight™ Report provides additional commentary on the circumstances under which takeovers are more likely to occur as well as key insights on carrier preferences and attitudes towards takeovers. The report is now available for purchase for $2,000. For more information or to order, call today at (860) 676-9633 or email us at email@example.com.
Takeovers and the Voluntary Market, a Spotlight™ Report
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.