#United States #Avon #voluntary benefits #Eastbridge Consulting #Guaranteed Issue

New Trends in Voluntary Benefits Underwriting

Recent research conducted by Eastbridge Consulting Group highlights a significant shift in the underwriting practices of voluntary benefits. The latest report, titled 'Underwriting Practices of Voluntary Carriers,' reveals that guaranteed issue underwriting is becoming the norm in this sector. In fact, a staggering 90% or more of the voluntary business written by carriers employs guaranteed issue methods.

Current State of the Market

This trend is reshaping the landscape of employee benefits, enabling a broader range of workers to qualify for these essential protections. The report indicates that over the last decade, many carriers have notably lowered their minimum participation rates, with some dropping to 10% or less. This willingness to adopt more liberal underwriting standards is driven by intense competition in the voluntary benefits market.

Director of research at Eastbridge, Ginger Bates, noted that the easing of underwriting practices could impose financial or risk pressures on carriers. However, this shift ultimately expands opportunities for employees, allowing more individuals to access valuable voluntary benefits. Today's workforce, which increasingly includes part-time workers, stands to gain from these changes as eligibility requirements evolve, trending towards 20 hours a week or less.

Key Findings of the Report

• - Increased Eligibility for Part-time Employees: The report emphasizes the growing trend that more part-time employees become eligible for benefits. This shift supports a more inclusive benefits structure that recognizes the diverse work arrangements of today.

• - Flexibility in Participation Requirements: Most surveyed carriers are open to waiving participation requirements under favorable conditions, particularly when employers facilitate preferred enrollment setups. This flexibility caters to the varying needs of employers and employees alike.

• - Technology and Underwriting Practices: Despite the advancements in technology, few carriers have integrated application programming interfaces (APIs) or artificial intelligence into their underwriting processes. Only a select number are utilizing APIs to manage medical underwriting or connect with enrollment platforms effectively.

The Future of Voluntary Benefits

The findings of the 'Underwriting Practices of Voluntary Carriers' Spotlight™ Report underscore the dynamic changes in the voluntary benefits landscape and highlight opportunities for employers to provide better options for their employees. The comprehensive data used in the report was collected from 26 voluntary carriers during late 2024, showcasing the current landscape and its future potential.

For companies striving to stay competitive in the voluntary benefits market, adapting to these trends is essential. Investors and employers alike must keep an eye on these underwriting changes, as they could significantly affect the accessibility and attractiveness of voluntary benefits.

About Eastbridge Consulting Group

Eastbridge Consulting Group, Inc. is a renowned marketing advisory firm, primarily serving companies in the voluntary and worksite benefits markets across the United States and Canada. To learn more about their insights and publications, visit their website or follow them on LinkedIn.

Contact Information

For inquiries about accessing the full report, reach out to Ginger Bates at [email protected].