Latest Eastbridge research shows continuing trend toward more liberal underwriting for voluntary benefits

AVON, CONNECTICUT, USA (February 13, 2025)

More guaranteed issue underwriting, lower participation requirements could expand benefits eligibility for many workers

Guaranteed issue underwriting continues to dominate the voluntary benefits market, according to a new report from Eastbridge Consulting Group. The Underwriting Practices of Voluntary Carriers Spotlight™ Report shows the majority of carriers write 90% or more of their voluntary business using guaranteed issue underwriting. At the same time, carriers have dropped their minimum participation rates significantly in the last decade, with 10% or less becoming more common.

“Increasing competition in the voluntary market is driving many carriers to ease their underwriting practices,” said Ginger Bates, Eastbridge director of research. “This could create financial or risk pressure for carriers, but also may allow more employees to take advantage of the protection voluntary benefits offer.”

The  Underwriting Practices of Voluntary Carriers Spotlight™ Report uses data collected from 26 voluntary carriers in November and December 2024 to analyze underwriting best practices, current trends and challenges. Carriers can use this information to compare their voluntary underwriting practices with those of competitors active in the voluntary market.

Other findings in the report include:

• More part-time employees appear to be eligible for benefits. The number of hours worked per week carriers require for employee eligibility is trending toward 20 or less.
• Most carriers surveyed waive participation requirements completely under certain circumstances, such as when employers offer preferred enrollment conditions.
• Few carriers use application programming interfaces or artificial intelligence in their underwriting practices. Only a handful use APIs to process medical underwriting or evidence of insurability and to connect with enrollment platforms.