New Eastbridge report shows voluntary carriers increasingly follow domicile state for multistate accounts

AVON, CONNECTICUT, USA (December 5, 2023)

Nearly two-thirds of carriers say their situs state practices affect sales

The number of voluntary carriers using the employer’s primary location as the governing state for multistate accounts has nearly doubled in the past decade, according to new Eastbridge Consulting Group research.

The Situs State Regulation Practices of Voluntary Carriers Frontline™ Report shows 81% of carriers surveyed default to the employer’s situs state for multistate accounts, up from 47% in 2012.

“Multistate accounts can create a lot of complexity for voluntary benefits carriers as they determine which state’s regulations to use for product variations, minimum loss ratios, coverage outside the U.S. and other features,” said Ginger Bates, Eastbridge director of research. “Most carriers say their practices serve them well, but this number has dropped in the past five years, and a significant percentage say a more liberal approach would make them more competitive.”

The Situs State Regulation Practices of Voluntary Carriers Frontline™ Report analyzes data collected from 38 voluntary carriers in September and October 2023. The report examines carriers’ current situs state practices and compares responses to previous studies. Companies can use this data to compare their own practices to others in the industry and look for opportunities to increase effectiveness and competitiveness.
Other key findings in the report include:

• The majority (86%) of carriers use the same situs state for both voluntary and employer-paid products when the account has locations in multiple states.
• A third of carriers vary their practices by state, especially for multistate accounts based in New York, New Mexico and Washington.
• More than four in 10 carriers don’t issue coverage for employees that work or live outside the United States, even if the company is based in the U.S.

 

About Eastbridge Consulting Group — is a marketing advisory firm serving companies focused on the voluntary/worksite benefits market in the United States and Canada. Follow Eastbridge on LinkedIn.