|
 Industry
Insight from Fred Barstein
401kExchange 2009 Micro Market
(Under $1 Million) Provider Ratings
The trend of 2008’s top 10 providers
being replaced by new comers in 2009 carries over into
the Micro Market (plans with less than $1million). Only
John Hancock
(View Profile),
which moved up from 9th place to 6th
for investment services, and
Principal
repeated their good ratings in the Micro Market.
CPI,
now a subsidiary of
CUNA,
retained top honors for record keeping and
administrative services.
Securian
(View Profile), Standard, Transamerica and Great West were recognized by their sponsor clients in both the
record keeping & administrative and investment services
categories.
As with other market segments, overall satisfaction ratings
are down significantly from 2008 falling 30-40%.
This is a sign that plan sponsors are getting
savvier, even in the Micro Market, and are not happy with
services provided.
Regardless, fewer than ever sponsors indicated that they
were willing to change providers either because they were
distracted by more important matters or they do not believe
that switching providers will make a difference.
Sponsors indicate that the only compelling reason to
change will be when a
provider can demonstrate the ability to help participants be
more successful in retirement, and back it up with reliable
data.
|
Investment
Services 2009 - Under $1 Million |
|
|
|
# of Surveys |
% Rated 4 or 5 |
2008 Ranking |
|
1 |
Securian |
102 |
32.35% |
|
|
2 |
T Rowe Price |
44 |
31.82% |
|
|
3 |
Standard Insurance Co |
75 |
30.67% |
|
|
4 |
Sentry Insurance |
72 |
27.78% |
|
|
5 |
Transamerica |
237 |
27.43% |
|
|
6 |
John Hancock |
1,291 |
25.72% |
9 |
|
7 |
First Mercantile Trust |
40 |
25.00% |
|
|
8 |
Principal Financial Group |
892 |
24.89% |
6 |
|
9 |
American Funds |
590 |
24.58% |
|
|
10 |
Great West |
461 |
24.30% |
|
|
|
Market Total |
11,155 |
23.44% |
-38.35% |
|
|
|
|
|
|
|
Record
Keeping & Administrative Services 2009 - Under $1
Million |
|
|
|
# of Surveys |
% Rated 4 or 5 |
2008 Ranking |
|
1 |
CPI (A Subsidiary of CUNA Mutual) |
42 |
47.62% |
1 |
|
2 |
Securian |
85 |
38.82% |
|
|
3 |
Retirement Advantage |
49 |
38.78% |
|
|
4 |
Standard Insurance Co |
72 |
36.11% |
|
|
5 |
Nicholas Hicks Inc |
51 |
35.29% |
|
|
6 |
KDP Retirement Service |
26 |
34.62% |
|
|
7 |
Sentry Insurance |
73 |
32.88% |
|
|
8 |
Transamerica |
210 |
31.43% |
|
|
9 |
American Funds |
193 |
30.57% |
|
|
10 |
Great West |
344 |
30.52% |
|
|
|
Market Total |
11,062 |
29.47% |
-32.59% |
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