In 2012 nearly half (45 percent) of voluntary benefit premium came from rollover business, according to an article in the June issue of Employee Benefit Adviser.  Jeff Caldwell, Transamerica Employee Benefits, points out that the exploding growth in this market is due to a number of factors.  Among the factors are 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.

He offers several strategies for success with rollover products:

  • 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 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.
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