Almost 80 percent of carriers participating in Eastbridge’s Voluntary Conservation and Retention Practices survey reported retaining less than nine percent of their coverages eligible to be ported. In fact, around half of carriers retain less than five percent. A minority were able to achieve higher retention rates in the 9 to 20 percent range.
In general, companies that offer individual products typically have higher conservation percentages than companies offering primarily group products. However, since 70 percent of voluntary sales come from group products, according to Eastbridge’s 2016 U.S. Voluntary/Worksite Sales Report, it would be especially advantageous for carriers marketing primarily group products to consider developing more proactive retention strategies. Only half of participating carriers plan to make changes in the next 3-5 years.
Most carriers do not take full advantage of the opportunities available at point of conservation. For example, a majority send employees one basic letter with instructions on how to port coverage via regular mail as opposed to delivering marketing-oriented content through multiple channels with multiple reminders.
The Voluntary Conservation and Retention Practices Spotlight™ Report provides further detail on carriers’ conservation and retention practices including current conservation rates and changes to those rates in the last 2–3 years, account and employee-level conservation practices, and obstacles to current and future conservation and retention efforts.
Voluntary Conservation and Retention Practices, a Spotlight™ Report
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.