Earlier this year, Milliman surveyed 32 employer stop-loss market participants about their business. The survey included eight of the largest 10 carriers in 2023 by written premium. The report reveals that administrative-services-only (ASO) carriers appear to have higher close ratios, higher persistency, and lower decline ratios than third-party carriers and managing general underwriters (MGUs). Predictive modeling algorithms are also more prevalent, although still not used by a majority of carriers. Our survey focused on various topics, including:
- Portfolio characteristics
- Underwriting measures
- Sales/Distribution
- Pricing
- Portfolio results
- Product characteristics
- Level-funded product
- High-cost pharmacy and gene therapy treatments
- Carrier concerns