The Eastbridge U.S. Worksite/Voluntary Sales Report finds takeover sales stabilized somewhat in 2011.

AVON, CONNECTICUT, USA (June 26, 2012)

Based on the most recent U.S. Worksite/Voluntary Sales Report, takeover sales (where one carrier’s plan is replaced with a similar plan issued by a different insurance carrier) now account for 42 percent of new voluntary sales premium reported in 2011, up just slightly from 41 percent in 2010. 

“We have definitely seen takeovers increase in the voluntary market,” says Gil Lowerre, president of Eastbridge. “Fortunately, the level of increase has slowed somewhat in the last year or so,” adds Lowerre, “but we know that as competition increases in the voluntary market, this will continue to happen.”

The following chart shows the takeover rates for the last five years.

Takeovers as a Percentage of NBAP

Despite the slower growth in 2011, carriers expect to see takeover activity continue to increase, according to a recent survey on product trends. “This is a result of many factors,” says Bonnie Brazzell, vice president, Eastbridge. “The growth of group platform products, increased sales by Benefit Brokers, and the growth of takeover-prone products like dental, vision, and other healthcare-related products have all added to the trend,” says Lowerre.

Some group companies report that 80 percent or more of their business is takeover. Individual companies report percentages averaging 5 to 20 percent, depending on whether their portfolio is primarily permanent life insurance or a full traditional portfolio.

While the trend is continuing, Lowerre adds, “there is still a lot of virgin business in the market, and many employers continue to be open to adding more types of voluntary products, so brokers don’t have to be content with just takeover plans.”

The U.S. Worksite/Voluntary Sales Report is an annual report conducted by Eastbridge. The 2011 report includes detailed data on the performance of more than 60 worksite marketing carriers, both group and individual. The report is only available to participating carriers. For more information on participating in next year’s survey, contact Eastbridge at info@eastbridge.com or call (860) 676-9633.

Eastbridge Consulting Group, Inc. is the leading marketing advisory firm serving the worksite/voluntary industry.