Half of the carriers surveyed intend to revise or upgrade their conservation and retention efforts in the next 3-5 years. Some of the specific changes mentioned in the Voluntary Conservation and Retention Practices Spotlight™ Report include increasing compensation to incentivize conservation and retention efforts, streamlining the process for members, and creating a call center strategy for handling cancellations and retaining business.
A few barriers may preclude carriers from investing in conservation and retention programs. One could be carriers’ corporate view of portability. Just under one-third of participating carriers see portability as a way to maintain and grow revenue. Interestingly, those companies with the highest reported retention percentages are more likely to view portability as a way to maintain and grow revenue, but many companies see it as a contractual right that must be honored, risky and unprofitable, or the responsibility of the employer.
Other obstacles mentioned to their current and future retention/conservation success include competitive pressures on pricing and product features and lack of employee access. Another commonly mentioned barrier is lack of an overarching strategy or infrastructure to execute. All carriers have the potential to benefit from instituting both small and large changes to their conservation programs.
The Voluntary Conservation and Retention Practices Spotlight™ Report provides greater insight into carriers’ conservation and retention practices on topics like corporate views of portability, voluntary platform types and portability differences by platform, and changes to conservation programs in the next 3-5 years. With this information, carriers can analyze how their company’s voluntary conservation and retention practices compare to other carriers and formulate strategies for capitalizing on future trends and expectations for conserving business.
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.