In 2012, nearly half (45%) of voluntary benefit premium came from rollover business, Transamerica Employee Benefits' Jeff Caldwell pointed out at a recent broker conference. The exploding growth of this market is due to many factors, such as an increase in the number of supplemental products available, the growing number of carriers offering voluntary benefits, and producers wanting to sell them, newer plan designs and revenue generation efforts, Caldwell, Transamerica's marketing director, explained.
He shared several strategies for success with rollover products. These include:
* eliminating employer disruption during enrollment;
* consolidating benefit strategies;
* targeted communications for both the employer and employees;
* conducting an employer needs analysis; and
* limiting enrollment expenses.
Further items to keep in mind when conducting business with a rollover voluntary benefit client, Caldwell outlined, include:
* product components (type, age of existing plan, product chassis, dependent coverage options);
* product design (matching or improving benefits with lower rates);
* underwriting (credit for time served, guaranteed issue availability for new and existing enrollees; and
* employee claims.
