A new 69色情片 survey of 15 major group life and health insurers suggests quote volumes have been defying expectations for at least a year before the outbreak of COVID-19. Explore the reasons for this rollercoaster with 69色情片.
A new 69色情片 survey of 15 major group life and health insurers suggests quote volumes have been defying expectations for at least a year before the outbreak of COVID-19.
It鈥檚 a counterintuitive finding at a time when so many missed targets have been pinned to pandemic-linked disruptions. So, what is driving the mismatch?
First fielded in 2016, the 69色情片 Group Insurance Close Ratio Survey asks group insurers to share volume and sales expectations and results across traditional and voluntary product lines. Group sales leave plenty of room for optimism: Close ratios measure the effectiveness of sales activities, and this all-important metric met or exceeded expectations between 2018 and 2020. Ranging between 9% and 13%, close ratios rose overall from the first survey results in 2016.
Smaller carriers with Group Life premiums lower than $500 million had the best performance, with the largest proportion of insurers reporting close ratios performed 鈥渁bove expectations鈥 across all group products. Voluntary, or add-on group coverages, also showed strength across all product lines, including higher persistency in 2020 than previous years.
And yet even as reality still appeared sunny, expectations grew clouded. Insurers' advance estimates for quote volumes for traditional group products fell precipitously in 2020. The numbers of carriers reporting that traditional group life quote volumes met or exceeded expectations tumbled 45 percentage points in the space of a single year, and group long-term and short-term disability carriers reported underperformance that began in early 2019 鈥 long before the outbreak of COVID-19 鈥 and bottomed out in 2020. Even more surprisingly, expectations began a modest rebound in 2021 even as the pandemic ground on through the year.
Traditional Group Products
Percentage of respondents who estimated they "Met" or were "Above" Expectations for Quote Volumes
Voluntary Group Products
Percentage of respondents who estimated they "Met" or were "Above" Expectations for Quote Volumes
While the 2016 survey addressed only traditional group products, the 2021 survey added voluntary group products. Volumes for these voluntary elections proved more resilient than traditional group coverages. These products also underperformed expectations, but the effect was much more modest, and the rebound in expectations was sharper.
So, what can account for this roller coaster? Potential explanations include:
