Recent Eastbridge Research Confirms Stability in Voluntary Benefits Coverage Amid Economic Challenges
In a recent analysis published by Eastbridge Consulting Group, significant insights into voluntary benefits coverage have emerged, suggesting a consistent trend of stability among employers and employees. Over the past four years, voluntary carriers have experienced relatively unchanged lapse rates, indicating that the perceived value of voluntary benefits remains high despite ongoing inflation and economic fluctuations.
According to the "Voluntary Lapse Rates" Spotlight™ Report, the data reveals that average lapse rates in the first year of coverage are nearly identical at both employee and account levels compared to similar findings from 2021. This trend suggests that, while sales numbers are vital, the retention of business through voluntary benefits is equally crucial for the sustainable success of insurance carriers. As Ginger Bates, Eastbridge's director of research, points out, "These stable lapse rates demonstrate that employers and employees continue to recognize the essential protection offered by voluntary benefits."
The report compiles extensive research on the tracking of voluntary lapse rates by various carriers, providing a benchmark on account and employee-level results. Key topics covered in the report include:
1. Account-Level Lapse Rates: Analyzing lapse rates based on case size and year, the report categorizes accounts and identifies the primary reasons behind their lapse.
2. Employee-Level Lapse Rates: Examining the drop-off rates associated with individual and group products, the findings emphasize the importance of understanding the factors influencing these rates.
3. Five-Year Trends: Particularly for supplemental health products like critical illness and accident insurance, a closer look at five-year lapse rates sheds light on longer-term patterns and customer retention strategies.
4. Future Concerns: Carriers express apprehension regarding challenges such as excessive commissions and takeover situations, which can impact account retention negatively.
Interestingly, while some voluntary carriers demonstrate solid tracking capabilities regarding retention and lapse, many admit significant gaps in their data collection processes. This often includes a lack of employee-level tracking, making it difficult to understand the nuances of coverage lapses across different demographics.
Additionally, the report highlights that universal life and whole life products show the lowest lapse rates at the employee level. This suggests that these types of insurance may offer perceptions of stability and reliability that appeal strongly to employees.
As the landscape for insurance and benefits evolves, Eastbridge’s findings indicate a resilient market for voluntary coverage. Employers seeking to enhance their worksite benefits strategy should consider the significant value these offerings provide in maintaining employee satisfaction and security.
For those interested in further details on the study, purchasing information, or insights into the voluntary benefits landscape, Eastbridge provides resources on their website. Contact details are available at their official platform for those looking to reach out for more information.
Ultimately, the continuity in voluntary benefits coverage amidst economic stress highlights a vital aspect of employee welfare programs and showcases the ongoing commitment of both employers and insurance carriers to uphold these essential protections within the workplace.
According to the "Voluntary Lapse Rates" Spotlight™ Report, the data reveals that average lapse rates in the first year of coverage are nearly identical at both employee and account levels compared to similar findings from 2021. This trend suggests that, while sales numbers are vital, the retention of business through voluntary benefits is equally crucial for the sustainable success of insurance carriers. As Ginger Bates, Eastbridge's director of research, points out, "These stable lapse rates demonstrate that employers and employees continue to recognize the essential protection offered by voluntary benefits."
The report compiles extensive research on the tracking of voluntary lapse rates by various carriers, providing a benchmark on account and employee-level results. Key topics covered in the report include:
1. Account-Level Lapse Rates: Analyzing lapse rates based on case size and year, the report categorizes accounts and identifies the primary reasons behind their lapse.
2. Employee-Level Lapse Rates: Examining the drop-off rates associated with individual and group products, the findings emphasize the importance of understanding the factors influencing these rates.
3. Five-Year Trends: Particularly for supplemental health products like critical illness and accident insurance, a closer look at five-year lapse rates sheds light on longer-term patterns and customer retention strategies.
4. Future Concerns: Carriers express apprehension regarding challenges such as excessive commissions and takeover situations, which can impact account retention negatively.
Interestingly, while some voluntary carriers demonstrate solid tracking capabilities regarding retention and lapse, many admit significant gaps in their data collection processes. This often includes a lack of employee-level tracking, making it difficult to understand the nuances of coverage lapses across different demographics.
Additionally, the report highlights that universal life and whole life products show the lowest lapse rates at the employee level. This suggests that these types of insurance may offer perceptions of stability and reliability that appeal strongly to employees.
As the landscape for insurance and benefits evolves, Eastbridge’s findings indicate a resilient market for voluntary coverage. Employers seeking to enhance their worksite benefits strategy should consider the significant value these offerings provide in maintaining employee satisfaction and security.
For those interested in further details on the study, purchasing information, or insights into the voluntary benefits landscape, Eastbridge provides resources on their website. Contact details are available at their official platform for those looking to reach out for more information.
Ultimately, the continuity in voluntary benefits coverage amidst economic stress highlights a vital aspect of employee welfare programs and showcases the ongoing commitment of both employers and insurance carriers to uphold these essential protections within the workplace.
Topics Financial Services & Investing）
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