AVON, CONNECTICUT, USA (December 18, 2007) – Overall persistency for voluntary products has increased over the last year according to about 50 percent of the respondents to Eastbridge Consulting Group’s latest Frontline Report, Persistency and Conservation Measures of Voluntary Carriers. About the same percentage of carriers said that the long-term trend (5 or more years) in the persistency for their company’s voluntary portfolio has stayed about the same over the time period or increased. These are just two of the findings from the new report.
The study also found that:
- Three-quarters of the carriers surveyed measure voluntary product persistency based on premium (as opposed to cases or policies).
- The majority of the participants’ voluntary product persistency has been in line with their pricing assumptions.
- Most carriers measure persistency over a 12 (or 13) month timeframe and many also use more than one timeframe.
- Although the participants use a variety of formulas to calculate persistency, the most common is based on the percent of premium remaining versus the percent inforce at the beginning of the time period.
The report also explores carrier persistency improvement programs (including persistency incentive and penalty programs) and conversion/retention programs.
Eastbridge Frontline Reports provide timely data on important topics. The reports are provided free of charge to Information Partner, Insight Customers, and participants. Companies interested in becoming an Insight or Information Partner Company can call the company at (860) 676-9633 or email [email protected]
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada. www.eastbridge.com.Tags: Eastbridge