Press Release Archives
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Voluntary
sales rebound in 2006 based
on
Eastbridge’s study of
61 leading carriers
AVON,
CONNECTICUT, USA (May
17,
2007)
For the
prior three years (2002 through 2005), industry voluntary
sales have increased an average of 2.7 percent a year.
While better than many segments of the insurance industry,
that pace was well off the pre-2002, double-digit growth
rates. But the slow-growth trend seems to have reversed
itself in 2006, with estimated worksite sales of $4.715
billion — an 8 percent increase over 2005.
“According to the 60 plus carriers surveyed
in our annual U.S. Worksite Sales Study, overall sales
growth has definitely rebounded, clearly indicating that the
strong growth years for voluntary are far from over,” says
Gil Lowerre, president of Eastbridge. “ The average sales
increase among the top 15 companies was 10 percent, much better
than the 1.5 percent last year. This year, among the top 15 companies,
nine had double digit sales increases. Just four had decreases
with all but one being in the 1-3 percent range.”
“Much of the slower growth over the past
few years was clearly attributable to a few large companies, ” adds
Bonnie Brazzell, vice president. “But most of these companies
had good years in 2006. In fact, seven of the nine largest sellers
experienced double-digit sales growth in 2006.”
Inforce premiums also increased by about 10 percent
in 2006 compared to seven percent in 2005. Based on our tracked
premium and estimates of the total market, we believe that the
2006 inforce worksite premium was between $14.8 and $19.5 billion.
The U.S. Worksite Sales Study estimates
sales for the entire voluntary industry with detailed data on
the performance of 61 worksite marketing carriers, both group
(voluntary) and individual (worksite) carriers/products. Eastbridge
estimates that these companies account for over 85 percent of
the total worksite sales volume for 2006—and represent
the largest number of carriers included in any sales report for
the industry.
Parties interested in participating in next year’s
study are advised to email Eastbridge at info@eastbridge.com.
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.
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