Pressemitteilungen

Participation Rates Met on 85% of Group Term Life Cases According to Recent Gen Re Study

Ausgabe: January 2016 | Life/Health North America

For immediate release
January 26, 2016

Stamford, CT, January 26, 2016 … One of the main challenges Group Term Life insurance companies face is how to effectively monitor their risk management practices. Gen Re’s U.S. Group Term Life Rate & Risk Management Survey, a highly regarded benchmarking survey that has served this market for over 15 years, provides a means for companies to benchmark and assess their strategies on an industry level. Gen Re is pleased to announce the latest survey has been released to participants and features the 2015 results for 24 companies.

One important area the report focuses on is participation rates for Group Term Life insurance cases. Here are some key metrics on this topic as reported by participants:

  • Actual participation on employee-paid sold cases in 2014 averaged 31%.
  • Companies reported that they met their participation requirements on an average of 85% of employee-paid sold cases.
  • 95% percent of companies test to see if their employee-paid participation levels are being met.
  • If participation levels are not being met, the most typical actions taken are to offer re-enrollment to get required participation in the existing year and to offer the group a contract with a limited rate guarantee.

 

"As the employee benefit market continues to move toward more employee choice and funding, participation rates will become a more direct contributor to both premium and profit", said Drew King, SVP Group & Specialty Reinsurance. "Carriers, brokers, and their employer clients should be using all the resources at their disposal to optimize employee enrollment."

Gen Re recognizes the importance of enrollment rates to Group Term Life insurance companies. As such our research unit is currently focused on developing insights using Behavioral Economics techniques and will be sharing them with participants to use in turn to encourage employee participation.

For more information about this survey or other Gen Re research, please contact Marcy Updike, VP, Market Research at mupdike@genre.com or 207 347 4626.

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Gen Re, a Berkshire Hathaway Company, is one of the leading life/health and property/casualty reinsurers in the world. Our North American life and health reinsurance company, General Re Life Corporation, has superior financial strength ratings among life and health reinsurers. Gen Re delivers tailor-made reinsurance programs and risk management solutions for the Life, Medicare Supplement, Critical Illness and Disability markets. Through our research, we also offer valuable information and insights. For more information, visit www.genre.com.

 

Contact:

Marcy Updike
+1 207 347 4626
mupdike@genre.com