AVON, Conn., April 25, 2018 (GLOBE NEWSWIRE) -- Of the 31 voluntary carriers surveyed in a recent study conducted by Eastbridge Consulting Group, seventy-one (71) percent offer both self and insurer administration options, while 29 percent only offer insurer administration for their voluntary products. For the purposes of this survey, self-administration (sometimes called employer administration) of voluntary programs means that the employer keeps individual records for each employee’s product owned instead of the insurance company.
While the majority of respondents offer both administrative options, most also have some type of restriction regarding the type of voluntary products that can be self-administered. The most common restrictions involve product platform (i.e. individual versus group) or product type (i.e. products that require frequent eligibility information such as dental or vision).
Even though the majority of carriers offer a self-administration option, only one-third of the carriers have more than 50 percent of their employers currently using this administrative option. In addition, even if the employer is using the self-administration option, the majority of the participating carriers still require an eligibility file to be submitted at least on an annual basis.
Changes anticipated in the next five years regarding administrative options include adding a self-administration option for several carriers that do not currently offer this service. Only two of the carriers that currently offer self-administration plan to expand their capabilities in this area, but about half plan to promote their self-administration option more than they do today.
The Self-Administration Practices for Voluntary Products Frontline™ Report offers a better understanding of whether this practice is becoming more or less prevalent for carriers to offer for their voluntary programs and provides additional details about how self-administration works for voluntary plans. Eastbridge Information Partners™ and survey participants receive the report, as well as other Frontline™ Reports, free of charge. For more information regarding the Information Partner program or about Eastbridge reports, email the company at info@eastbridge.com or visit the website at www.eastbridge.com.
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.
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Ginger Bates (803) 782-0560