AVON, Conn.--(BUSINESS WIRE)--Voluntary sales were $7.63 billion in 2016, according to Eastbridge’s annual U.S. Voluntary/Worksite Sales Report. But not all this premium is virgin business—an increasing percentage is business that is moving from one carrier to another.
Takeovers (where one carrier’s plan is replaced with a similar plan issued by a different insurance carrier) accounted for 54 percent of the new sales premium written in 2016. This is up one point from 2015 but up almost 29 percent over the last five years.
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The increase in takeovers continues to be largely driven by the increase in voluntary sales by Benefit Brokers. These brokers were responsible for 62 percent of all voluntary sales in 2016. For most of these brokers, replacing another carrier’s plan with one offering better benefits or lower premiums is standard in their traditional employer-paid group business, and many approach the voluntary market in the same way. However, some are discovering there is more virgin business in the voluntary market and are introducing new lines of business to their clients. Still, both carriers and brokers do not see the trend of takeovers going away.
The annual U.S. Voluntary/Worksite Sales Report estimates sales for the entire voluntary industry, with detailed data on the performance of 65 carriers, both group and individual, and represents the largest number of carriers included in any sales report for the industry.
Carriers interested in participating in next year’s study should email Eastbridge at firstname.lastname@example.org. All participants receive a free copy of the complete findings, including company-specific results.
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.