While in previous surveys most carriers noted that larger cases typically had higher takeover rates, Eastbridge’s 2020 Takeovers and the Voluntary Market Spotlight™ Report indicates this is no longer the case. Half of carriers surveyed see no difference in takeover levels by case size while just over a third said takeovers are more common for larger case sizes. In addition, most carriers do not see any difference in takeover rates when level or heaped commissions are paid on an existing case.
Overall, 89% of participating carriers have seen their takeover volume increase over the past three years and an equal percentage expect the volume of takeover business to increase in the next three to five years. Carriers noted a variety of concerns and challenges with takeovers but primarily focused on takeovers requiring changes to underwriting, benefits and rates, with these changes often creating increased administrative complexity and pressure on profitability.
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.