The majority of carriers surveyed in Eastbridge’s 2018 Underwriting Practices of Voluntary Carriers Spotlight™ Report believe industry underwriting guidelines have become more liberal over the past few years. Only 21 percent of carriers felt they “stayed about the same.” More specifically, an overwhelming majority of carriers think participation requirements are becoming more liberal and guaranteed issue amounts are increasing.
Carriers also indicated that although the majority of their premium is guaranteed issue versus simplified issue or fully underwritten, most have a simplified or full EOI process in place for amounts above the guaranteed issue limit.
The study also found that primary obstacles or concerns regarding underwriting practices were the above noted issues as well as pressure to waive pre-existing conditions limitations, liberalize open enrollment timeframes, and maintain rate competitiveness for differing enrollment and broker requests.
The 2018 Underwriting Practices of Voluntary Carriers Spotlight™ Report includes data from 28 carrier participants on such topics as group-level underwriting practices, minimum requirements (case size, eligibility, participation), renewal underwriting guidelines, rate increases, advance approval process, and underwriting time frames and standards. The report also examines several underwriting trends, including industry underwriting guideline and participation changes as well as guaranteed issue and case size requirements. [Note: Product specific underwriting guidelines are not the focus of this study.]
Underwriting Practices of Voluntary Carriers, a Spotlight™ Report
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.