Also in this issue:
Product Trends in the Voluntary Market
What Differentiates Us?
Voluntary Sales Grew In
2009
OneAmerica: 2009 Growth Company
Managing in the Dark
Coming Soon: An Update to Our MarketVision™ –Employee
Viewpoint
2020: an Update
Have Critical Illness Sales Finally started to Gain Ground on
Cancer Sales?
Conservation, Part I
More Employers Offer Voluntary Products
The New Enrollers
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Summer 2010, No. 84
Product Trends in the
Voluntary Market
By Bonnie Brazzell
In our recent bi-annual Product Trends Frontline Report, carriers indicated that the most pronounced product trends were
liberalization of underwriting guidelines. Specifically, the responding
carriers believe there is a trend towards more guaranteed issue
and lower participation requirements. Respondents also mentioned
seeing a tendency towards more features and options in voluntary
plans. The following chart gives the full results.
Most Pronounced Product Trends
Answer Options |
Percent |
| More guaranteed issue |
58% |
| Lower participation requirements |
53% |
| More features and options |
45% |
| Lower prices |
29% |
| More use of shelf rates |
29% |
| Higher initial compensation/commissions |
18% |
| Fewer age bands |
18% |
| Higher renewal compensation/commissions |
13% |
| More age bands |
8% |
| Fewer features and options |
8% |
Respondents also indicated similar feelings when asked about
the greatest pressures concerning voluntary products. Pressure
to liberalize guaranteed issue guidelines was the most common
response. In fact, 43 percent of the carriers felt this was the
area of the greatest pressure. Most (65 percent) indicated that
the pressure is coming primarily from brokers/producers as opposed
to customers or the company’s field staff.
The following chart shows the full results.
Areas of Greatest Pressure
Area |
Percent |
| Pressure to liberalize guaranteed issue guidelines |
43% |
| Pressure to lower prices |
18% |
| Pressure to increase compensation/commissions |
18% |
| Pressure to improve/update features and benefits |
13% |
| Pressure to increase coverage levels |
5% |
| Other |
5% |
Other key findings of the Product Trends survey include:
• Sixty-six (66) percent of the respondents plan to introduce
new products in 2010.
• When asked if the volume of takeover business in the voluntary
market has changed, 61 percent said it has increased (with five
percent saying it has increased significantly).
• The three products with the highest percentage of carriers
rating them as “very profitable” included AD&D,
accident, and universal or whole life.
• The top three growth products (over the next 2-3 years)
that carriers expect for their own companies were accident, short-term
disability, and critical illness insurance.
• At the industry level, the expected growth products included
accident and critical illness as above but tied for third was
supplemental medical plans and universal life.
The Product Trends Frontline Report is conducted
bi-annually by Eastbridge. The report is only available to Information
Partner companies and participants. Call us to get on the list.
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