The End-of-Level-Period Balancing Act

Setting end-of-level-period (EOLP) term rates has never been an exact science in our industry. Two predominant schools of thought have emerged. One group espouses a high initial EOLP reset to induce policyholders to replace coverage. Another seeks to find an appropriate “fit” to encourage better risks to persist after the level premium period – if only for a couple of years.

This article examines the potential advantages and challenges of each approach in more detail.

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