Over the last few years we've seen a number of new entrants into the dental benefits market. With many options for leasing networks and outsourcing back office functions, the barriers to entry seem fairly low. So far not many carriers have exited dental. However, one of the nation’s largest insurers recently announced it is leaving the dental benefits market to focus on other products. It may be too early to tell, but this news does spark the question: Could this be the beginning of an exit trend?
Prudential Financial Inc. announced last week that it will discontinue the sale of dental coverage and concentrate instead on its bread and butter: life and disability policies. The second-largest U.S. life insurer said its group unit, Prudential Group Insurance, will continue to service dental clients until their current contracts expire.
In recent years very few carriers have left the dental industry. But times have changed and perhaps dental is not as easy as it seems.
What do you think? Will more insurers follow Prudential’s lead and strategically eliminate supplementary lines of business to focus efforts and resources on their core products?